For years the property industry has been delivering new and refurbished office buildings fitted out to CAT-A standard – generally accepted to be to a level where furniture and  IT infrastructure is ready to be installed – with high quality finishes including shiny raised floors, suspended ceilings and light fittings to attract potential occupiers into new office stock.

Trends may have changed with the introduction of new ceiling types, the development of LED lighting and exposed services, but in principle the same standards still apply. But why? When a tenant starts their own fit-out they typically decommission the services and then modify the CAT-A fit-out, often quite dramatically, leaving a proportion of the original finishes discarded.

One argument to support installing a CAT-A fit-out is that it is required to effectively market the building as occupiers are unable to visualise how the space could look without it.

Another is a matter of timing and that presenting office accommodation as needing only minimal input to enable a tenant to move in is far more appealing. However, with tenant changes being inevitable, not only does it cost both parties time and money, it generates a large amount of waste materials, not all of which can be recycled.

So what are the alternatives?

Some landlords are already exploring other options. For example, when British Land completed Broadgate Tower in 2009 it finished a selection of show floors to CAT-A. It then offered new tenants the choice between that and a financial contribution. Blackstone has gone a step further at Chiswick Park with varying styles of offices show suites to entice potential tenants.

Technology is also set to play a role, especially as virtual reality (VR) becomes more mainstream. Being able to offer decision makers a headset ‘tour’ of a building alongside different fit-out options could be a game-changer when negotiating a pre-let.

This way you could choose suspended ceilings or exposed services and know the precise impact on the look and feel of the space, programme and costs without ever lifting a finger.

Savills has been working with VR recently, using the technology as part of the design development for a 130,000 sq ft CAT-B office fit-out for a London occupier. A full 3D model was developed including all fixtures, finishes and furniture. This gave the client the opportunity to take a ‘virtual tour’ of the office, enabling them to give digital sign-off before the works even started on site. 

This technology applied to refurbishment and development projects could allow investors and developers to complete their finishes to shell and core, or shell and floor only. However, this will only work with tenant buy-in.

Elsewhere in the world they already do things differently. In Australia for instance, there is no such thing as CAT-A, with offices typically being finished to shell and core with a landlord contribution.

So will we see this become the norm in the UK? With continuing speculative announcements expected in 2019 and technological advancements becoming more and more mainstream, perhaps we will start to see a plan B for CAT-A.

Further information

Contact Savills Building & Project Consultancy