Cat A vs Cat B fit-out: what the landlord hands over, and what you add

Why the difference between Cat A and Cat B matters before you sign

Two floors advertised as "Cat A" can be quite different. One has new lighting and air conditioning throughout; another has a ceiling and floor that will mostly come out again when your layout goes in. The rent, the rent-free period and the cost of your own fit-out all depend on where the landlord's work stops and yours starts.

There's no legal definition of Cat A or Cat B. The terms are market shorthand, and the British Council for Offices (BCO) publishes the guides the industry refers to, including its Guide to Fit-Out and Guide to Specification. Those guides are paid publications, so this article works from public sources: the definitions in the RICS professional standard on whole life carbon, and a published study by the architects AHMM on Cat A fit-outs.

The practical point is simple. Whatever the particulars say, the lease and the specification attached to it decide what you get. So ask for the specification in writing, early.

Shell and core, Cat A, Cat A+ and Cat B, step by step

Shell and core

The building itself, with no finishes on the office floors: structure, façade, the core (lifts, stairs, toilets and risers) and the central plant. Some landlords offer shell and floor, which AHMM describes as shell and core plus "raised access floor and temporary lighting". On the BCO's own framing of the choice, building owners "are faced with two choices: Shell & Core, or Cat A".

Cat A: what the landlord usually delivers

The RICS standard on whole life carbon defines a Category A fit-out as one that "includes basic finishes to the floors, walls and ceilings: the space is finished but with no fixtures and fittings such as partitions, meeting rooms or individual offices laid out." It lists the scope as "finishes (e.g. raised access floors, suspended ceilings), MEP and fixed FF&E outside of the shell and core scope". MEP is the mechanical, electrical and plumbing services; FF&E is furniture, fixtures and equipment.

In practice, a Cat A floor usually has:

• a raised access floor and a suspended ceiling;
• lighting across the open floor;
• heating, cooling and ventilation extended across the floor from the central plant;
• fire alarms, emergency lighting and, where the building has them, sprinklers;
• finishes to the core walls and basic decoration.

AHMM's study adds that the exact specification of a Cat A fit-out "can vary". That's the reason to check each floor rather than assume.

Cat B: what the tenant usually adds

RICS describes Cat B as following on from Cat A and including "bespoke partitioning, finishes, carpeting, lighting, kitchen facilities, etc. that are specific to the requirements of the occupier." Its fuller list covers internal walls for a specific layout, final finishes, loose furniture, IT and AV equipment, "moving or adding mechanical and electrical services to suit the cellularisation of the space", and meeting rooms. Cat B can also include "dedicated kitchens, showers and/or changing rooms".

So Cat B is where your brief turns into a building: the number of desks and rooms, how you meet, where the kitchen goes, the comms room, storage, lockers and the look of the place. It's normally the occupier's cost, and it's the part most open to choice.

Cat A+ and plug-and-play

Cat A+ sits between the two. AHMM describes it as "a ready-to-go office space provided by the landlord including Cat A, plus cellular spaces, furniture, and services", and notes that the BCO defines it as plug-and-play. The law firm Brodies lists what a Cat A+ floor usually adds: "fitted kitchens and toilets; partitioning / meeting room spaces; IT infrastructure; office furniture; and full M & E".

It can suit a smaller team that wants to move quickly without running its own fit-out. The trade-offs:

• The layout is someone else's. It was designed before you arrived. Check that it fits your brief: desks for your peak day, the meeting rooms you actually use, enough storage. A test-fit of your brief against the landlord's layout shows the gaps.
• You pay for it in other ways. Brodies notes that the rent and incentives are likely to be different, because the landlord is recovering the cost of the extra works.
• Changing it later may need consent. Moving a partition in a landlord's fit-out is likely to need the landlord's consent under the lease, like any other alteration.

Who usually pays for what

As a starting point: the landlord pays for the shell and core and for Cat A (or Cat A+), and recovers that through the rent and the terms. The tenant pays for Cat B. Incentives such as a rent-free period or a capital contribution towards your fit-out are negotiated, not given, and the RICS leasing code expects heads of terms and the lease to set out "any agreed minimum requirements and any capital contributions".

We haven't put a cost per square metre or per square foot here. Fit-out costs move with the building, the specification and the market, and we'd rather not quote a rate we can't source. If you need a budget, get a range for your brief on your floor, with the source and date of the cost data stated.

When the Cat A gets ripped out

Here's the awkward part. A landlord fits out Cat A before knowing who the tenant will be, and the tenant's Cat B then changes it: ceilings cut for new rooms, lighting moved, air conditioning re-zoned for meeting rooms. AHMM's study is titled Fit Out // Rip Out for that reason. It says the initial fit-out "is often ripped out and replaced with an interior bespoke to the client".

Two things follow for you as a tenant:

• Ask what the landlord would do instead. AHMM suggests a landlord could offer some floors as shell and core or shell and floor, or make a cash contribution towards the tenant's own fit-out. Not every landlord will, but it's a fair question while terms are open.
• Get your layout early. If you know where your rooms go before the landlord finishes its Cat A, some of the ceiling, lighting and services can go in once, in the right place. RICS makes the same point the other way round: impacts are lower when the scopes of shell and core, Cat A and Cat B "are clearly understood by each responsible party".

What to check in heads of terms

Heads of terms are the outline of the deal, agreed before the lease is drafted. In England and Wales, the RICS Code for leasing business premises lists questions that written heads of terms should answer "as a minimum". Several are about fit-out:

• "What initial works/fit out will the landlord be completing and when?"
• "What initial works/fit out will the tenant be completing and when?"
• "What rights does the tenant have to make alterations to the premises?"
• "Is there a rent-free period or any other incentives?"
• "Who has responsibility for repairing the premises?"

The code also says the tenant should be told "at the earliest practicable time" if the landlord intends to impose obligations for an initial fit-out.

On top of those, we'd want to see:

1. The Cat A specification, attached. Ceiling and floor type, lighting, the heating, cooling and ventilation system, and the occupancy it was designed for, so you know whether your headcount works with the services.
2. The handover date and condition. Will the Cat A be complete when your fit-out starts, or will the two overlap?
3. What happens to Cat A you don't use. If your layout removes parts of it, who pays, and can the landlord store and reuse them?
4. Consent for your Cat B works. Usually a licence for alterations, with the landlord's approval of your drawings. Ask how long approval takes.
5. Reinstatement at the end. Will you have to strip out your Cat B and put back the Cat A when you leave? It's a cost at the end of the lease, so agree it at the start.
6. A schedule of condition, if repairs are limited. The RICS code says that if the tenant's repair obligations are to be limited to the initial condition, "a schedule of condition will normally be required".

Our office lease checklist covers the rest of the lease: term, breaks, rent review, service charge and dilapidations. Take legal advice on the lease itself.

How Cat A and Cat B fit into your office brief

Cat A and Cat B belong in your brief, not only in the lease. Write down what you need from the space first, using our guide to how much office space you need. Then, in the budget part of your office fit-out brief, separate what the landlord provides from what you'll pay for, so every contractor prices the same scope.

The Workspace Brief Sprint does this for one shortlisted floor: a requirements brief, a hybrid headcount and space model, an indicative Cat A / Cat B budget range (with the source and date of the cost data stated), one test-fit, and a list of questions for your landlord about the Cat A specification, the services and the terms. It's from £2,450 + VAT for a floor of up to about 465 m², with a target delivery of 10 working days. We don't carry out fit-out works, and the sprint isn't a lease review.

Frequently asked questions

Comparing floors with different specs?

Bring the particulars for the floors you're looking at to a free intro call. We'll talk through what each landlord is offering, and whether a test-fit and a Cat A / Cat B budget range would help you compare them.

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