SCALE, PAUSE OR EXIT? HOW ECONOMIC UNCERTAINTY IS RESHAPING WORKPLACE DECISIONS IN 2026
In 2026, uncertainty is no longer a phase to wait out. It is the operating condition.
Across the UK life sciences sector, organisations are making workplace decisions against a backdrop of fluctuating funding cycles, evolving government policy, planning complexity and increased scrutiny on capital deployment. The question facing leadership teams is no longer simply whether to invest in space, but how much risk to carry, and where.
As a result, many organisations now find themselves at a crossroads: scale, pause, or exit.
THE CURRENT CLIMATE, UNCERTAINTY AS THE DEFAULT
The UK remains a globally competitive life sciences market, but the environment in which decisions are made has become more complex.
- Public funding and grant timelines are less predictable.
- Private capital is more selective and milestone driven.
- Planning and regulatory processes remain slow and opaque.
- Construction cost volatility has stabilised, but risk appetite has not.
In this context, workplace decisions, particularly those involving labs, long leases or capital intensive fit out, are increasingly viewed as irreversible commitments.
The result is caution. Not because demand has disappeared, but because certainty has.
WHY COMPANIES ARE DELAYING WORKSPACE DECISIONS
Many life science organisations are responding in similar ways:
- Extending leases without major investment.
- Over reliance on short term flexibility clauses.
- Pausing refurbishment or expansion programmes.
- Deferring lab upgrades in favour of minimal compliance.
This has led to what we increasingly see as design stall, where organisations know their environments are no longer fit for purpose, but delay action in the hope of greater clarity.
The assumption is that waiting preserves optionality.
In reality, it often does the opposite.
THE HIDDEN COST OF WAITING
Indecision carries a cost, one that rarely appears on the balance sheets.
Design stall typically results in:
- Incremental inefficiencies that reduce research throughout.
- Increased operational friction for technical teams.
- Difficulty attracting and retaining specialist talent.
- Reactive spending as equipment or compliance issues emerge.
- Reduced ability to scale when opportunity returns.
Perhaps most critically, delayed decisions compress future timelines. When clarity does arrive, through funding, growth, or acquisition, organisations are forced into accelerated delivery under pressure, increasing risk and cost.
In life sciences, where environments are complex and change is disruptive, this can be more damaging than early commitment.
WHAT SMART ORGANISATIONS ARE DOING INSTEAD
Rather than choosing between full commitment and complete delay, leading organisations are reframing the problem.
They are shifting focus from short term flexibility to long term optionality.
This means:
- Making early strategic decisions that keep multiple futures viable.
- Designing base build and fit out strategies that allow phased investment.
- Prioritising certainty in core infrastructure while deferring non-critical elements.
- Integrating design and build expertise earlier to reduce unknowns.
- Treating workplace decisions as operational enablers, not sunk costs.
In effect, they are designing environments that can absorb change, not environments that attempt to predict it.
DESIGNING FOR OPTIONALITY, NOT PERFECTION
Optionality is not about over designing or future proofing everything. Its about intelligent constraint.
High-performing life science workplaces in 2026 are characterised by:
- Clear zoning that supports current science while enabling future shifts.
- Infrastructure strategies that allow adaptation without revalidation at scale.
- Phased delivery models aligned to funding and research milestones.
- Spaces that prioritise performance today, without locking out tomorrow.
This approach reduces risk, preserves capital discipline and crucially, allows organisations to move quickly when conditions improve.
Workplace decisions in life sciences are no longer purely real estate questions. They are leadership decisions that shape:
- Research velocity.
- Talent attraction and retention.
- Organisational confidence.
- Strategic agility.
In 2026, the most expensive position is often the middle ground, not committing, not exciting, and not preparing to scale.
References and further reading:
Office for National Statistics (ONS)
UK Business Investment, Economic Outlook & Working Patterns
National data on business investment trends, capital expenditure caution and changing workplace behaviours.
https://www.ons.gov.uk/businessindustryandtrade/business/businessservices
https://www.ons.gov.uk/economy/grossdomesticproductgdp
https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/articles/businessinvestment
Bank of England
Monetary Policy, Interest Rates & Economic Conditions
Context on the prolonged high-interest-rate environment and its impact on corporate decision-making and capital deployment.
https://www.bankofengland.co.uk/monetary-policy
https://www.bankofengland.co.uk/monetary-policy-report
Gensler Research Institute
Global Workplace Survey & Workplace Performance Research
Evidence on how alignment between space, work modes and behaviour drives performance more effectively than scale alone.
https://www.gensler.com/research-insight/global-workplace-survey
https://www.gensler.com/research-insight/workplace-surveys
CBRE
UK Office Occupier & Real Estate Market Insights
Reporting on occupier strategy shifts towards refurbishment, re-stacking and footprint optimisation rather than relocation.
https://www.cbre.co.uk/insights
https://www.cbre.co.uk/insights/books/uk-real-estate-market-outlook
JLL
Future of Work & Occupier Strategy Reports
Analysis of how economic uncertainty is influencing workplace investment, portfolio optimisation and risk-led decision-making.
https://www.jll.co.uk/en/trends-and-insights
https://www.jll.co.uk/en/trends-and-insights/research/future-of-work
BCO (British Council for Offices)
Office Market & Occupier Trends
Insight into how occupiers are adapting existing office stock to meet changing operational and economic realities.
https://www.bco.org.uk/Research
RICS
UK Commercial Property Market Surveys
Forward-looking sentiment on occupier demand, refurbishment activity and investment caution.
https://www.rics.org/uk/news-insight/research/market-surveys
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