A New Office Layout By Monday: Cost And Time Savings Of Modular Rooms

Using modular meeting rooms instead of traditional fit-out construction could save occupiers across Europe, the Middle East and Africa more than €1B over a lease term — and that figure exceeds $1.5B in the U.S.

These are the findings of the Lifecycle Cost Report, research carried out by cost consultancy EthosEQ and commissioned by Mute, which produces adaptable office architecture and the room-in-room office system called Mute Modular.

“An occupier can’t change elements such as meeting rooms constructed with traditional plasterboard and studs without considerable cost and time,” said Colin Wood, partner and managing director at EthosEQ and author of the report. “But with Mute Modular rooms, they could, in theory, change the layout in a weekend.”

EthosEQ assessed the cost of modular office solutions, based on the Mute Modular system, against the cost of creating a typical floor plate with a mixed configuration of desks and meeting rooms in 27 cities in Europe, the Middle East and North America. 

For the research, a traditional fit-out was assumed to use materials such as gypsum boards, studs, insulation and glazing, all constructed on-site.

Mute’s modular rooms are prefabricated from engineered interchangeable wall modules connected with a patented click-in system. Rooms are equipped with integrated ventilation, lighting, media ports and sound-absorbing solutions.

The team looked at costs for the initial fit-out, a partial reconfiguration of 25% of the space in Year 3, a 75% reconfiguration in Year 7, and the end-of-lease cost to return the space to an empty state.

The report found that installing Mute Modular rooms costs 10% less on average compared to a traditional fit-out, and the difference rises to 60% in high-cost cities such as London, Zurich and New York. 

“While the modular system we analysed turned out to be more cost-effective from the beginning, the savings really ratchet up as soon as an occupier makes even one iteration of change,” Wood said. “It becomes extremely cost-effective if you’re building for any level of adaptability.”

A traditional solution using plasterboard has to be completely dismantled, but Mute’s system is designed to be extremely flexible, Wood said. It can be reconfigured to a different shape or function and moved quickly as the occupier’s needs change. 

Such solutions are increasingly important as fit-out costs have risen and lease lengths have shortened, he said. The average cost of an office fit-out in EMEA was €1,509 per SF in 2025, which is a lot to spend every 3.7 years, the average UK office lease length. 

Another factor driving refurbishments is that smaller occupiers increasingly seek fitted, flexible office space. In 2025, 72% of lettings below 5K SF were for fitted space to meet occupier demand.

The growth of artificial intelligence and changes in working practices mean businesses are also more susceptible to change, Wood said. Managed offices and spaces that a landlord has fitted out to be Category A-plus need to be reconfigured for changing clients. 

“We tell clients that although you can design for Day 1, as soon as you get into your space, it won’t operate how you thought it would on paper,” he said. “So occupiers or landlords need to set money aside for changes, such as more phone booths or meeting rooms.”

Mute CEO Szymon Rychlik said that the research highlights a shift in how workplace infrastructure should be evaluated as a result of the changing industry.

“Rather than treating fit-outs as fixed assets, organisations increasingly adopt space-arrangement solutions that can adapt over time,” he said. “As our solution combines operational flexibility with lower life cycle costs, it presents a resilient and cost-efficient alternative to traditional construction methods that has the potential to redefine how organisations approach fit-out investments.”

As well as cost and time savings, there is a reduced carbon footprint in reconfiguring pods compared to altering built spaces. Mute has designed its system for circular use, while prefabrication reduces waste on-site.  

Overall, the report highlights the gap in the market for adaptable solutions, Wood said. 

“The market needs to respond to the evolving needs of tenants and landlords, which now includes speed of implementation and flexibility,” he said. “The challenge is now on other parts of the industry to find modular solutions.”

This article was produced in collaboration between Mute and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.