Circular value chain transition in office fit-outs: best practices, opportunities and key performance indicators

Purpose The purpose of this study is to explore how the office fit-out sector can transition from a linear to a circular value chain to mitigate environmental impacts. It aims to identify practical circular economy initiatives, examine enabling conditions for their adoption and propose conceptually grounded key performance indicators. The study addresses the industry's significant contribution to waste and emissions by offering insights into scalable solutions that integrate design innovation, business models and policy mechanisms. Design/methodology/approach This study adopts a constructivist grounded theory approach to investigate circular economy opportunities within the office fit-out sector. Twenty-three case studies were selected and analysed, encompassing a range of projects, programs, policies and products aligned with circular economy principles. The analysis identifies and categorises circular initiatives, focusing on their implementation across pre-use, use and post-use life-cycle stages. Key performance indicators (KPIs) are developed and systematically linked to these initiatives and enabling mechanisms, aiming to evaluate circular performance comprehensively. Findings The study identifies three primary areas for enhancing circularity: design strategies, business models and policy/societal transitions. Thirteen KPIs are proposed and linked to specific opportunities and enabling actions. Most initiatives emphasize slowing and closing the loop through reuse and recycling. However, early-stage strategies such as refuse and reduce remain largely untapped. The findings also demonstrate that achieving circular outcomes depends not only on design choices but also on supportive business and policy environments. Originality/value This study provides a novel, system-wide perspective on circular economy implementation in office fit-outs by integrating diverse case studies and mapping them to actionable KPIs. Unlike prior research that focuses on isolated interventions, this work reveals the interdependencies between design, business models and policy and societal supports across the asset life cycle. The proposed framework offers both theoretical advancement and practical value by enabling stakeholders to evaluate and accelerate circular practices in fit-out projects.