Shell and Core

Shell and core ‘fit out’ is the initial and most basic stage of a building’s fit out – covering the building’s envelope and main structural elements such as external walls, roof, windows and doors. At this stage, only basic building services are provided including electrical and plumbing infrastructure in addition to fire protection systems.  

The purpose of a shell and core fit out is to provide a flexible and adaptable space that can accommodate a wide range of tenant preferences and requirements. When engaging with a landlord for a space to occupy, a CAT A and above fitout refers to the level of finish and functionality that brings the rentable space up to a standard ready for occupancy.

CAT A Fit Out

CAT A, or Category A fit out, refers to the base condition of an office space provided by the landlord. It includes the essential infrastructure and finishes necessary for occupancy. This baseline specification is used when assessing future rent reviews or when determining a tenant’s reinstatement obligations.  

CAT A fit outs build upon a shell and core space by incorporating crucial services like electrical distribution, lighting, HVAC systems, and basic plumbing connections. CAT A fit outs also provide basic finishes such as raised floors, suspended ceilings, and wall finishes. The objective is to establish a functional and presentable environment. Essentially, it creates a blank canvas for incoming tenants, allowing the tenants to customise the space according to their specific needs.

CAT B Fit Out

On the other hand, CAT B or Category B fit out involves the customisation and interior fit out of the office space to meet the specific requirements of the tenant. It transforms the CAT A base fit out into a fully functional and tailored working environment. CAT B fit outs typically involve constructing partitioning to create individual rooms, meeting areas, break rooms, and other functional spaces. CAT B fit outs can also include upgrades to services beyond basic necessities, incorporating systems like IT infrastructure, audio-visual equipment, and specialised lighting solutions. Aesthetics and branding are prioritised in CAT B fit outs, including interior finishes such as wall coverings, flooring options, bespoke joinery, decorative lighting, and other design features tailored to the tenant's vision and corporate identity. CAT B fit outs are typically carried out and paid for by the tenant, with the landlord’s approval.

CAT A+ / Plug and Play

CAT A + - or Plug and Play space - is a category of fit out sometimes offered by the landlord as a way of enticing tenants to the space. It is a step above CAT A, but below CAT B – design features and configurations such as meeting rooms and breakout spaces, furniture, workstations, fitted kitchens and IT infrastructure is typically provided with a CAT A + fit out, resulting in a functional office that the tenant can begin working in immediately, making minimal adjustments at minimal cost to the tenant. However, a ‘plug and play’ space is not delivered tailored to the occupier’s identity/brand and therefore lacks a personalised finish that is important for some tenants.

When deciding between CAT A and CAT B fit outs, consider the following factors:

• Lease Terms: Understanding the lease agreement and the responsibilities of both the landlord and tenant is crucial in determining the appropriate fit out category.
• Depending on the condition of the space provided, some landlords will offer a credit to offset fit out costs. These incentives are typically negotiated and outlined within the lease agreement.
• Budget and Timeframe: CAT A fit outs are generally less expensive and quicker to complete compared to CAT B fit outs due to their basic nature. Assessing the budget and project timeline will help determine feasibility.
• Tenant Requirements: Consider the nature of your business, operational needs, and preferences in determining whether a CAT A or CAT B fit out is more suitable. Factors such as office layout, branding, functionality, and employee comfort should be considered.

In conclusion, CAT A and CAT B fitouts serve different purposes in the office space lifecycle. CAT A creates the base for occupancy, while CAT B allows tenants to customise and create their desired working environment. Understanding the distinctions between these fit out categories is crucial for making informed decisions and effectively planning office space transformations.

By considering lease terms, budget, timeframe, and tenant requirements, businesses can determine the most suitable fit out approach for their specific needs. Whether it's creating a functional office space or showcasing a unique brand identity, CAT A and CAT B fit outs play integral roles in achieving a tailored and productive work environment.

Walter Leiper is a Graduate Surveyor in Savills Building and Project Consultancy