There has been a change in the traditional office fit-out and letting model. Normally, a landlord would acquire a space and carry out a CAT A fit-out before they begin the search for a tenant. The new tenant would then sign a lease, usually on a fixed, long-term basis, and carry out a CAT B fit-out according to their needs.
However, in the current market this model has changed as many tenants are looking for shorter term contracts offering more flexibility. Many tenants cannot afford the cost of a fit-out so there has been a rise in demand for a cost-effective solution. Therefore, a new fit-out model has been introduced where landlords offer pre-fitted spaces to tenants on shorter term deals, known as CAT A Plus.
To fully understand the Cat A+ fit-out model, let’s take a deeper look into the traditional fit-out process:
CAT A Fit-Out
Prior to putting a property to market, the landlord will conduct a CAT A fit-out. This will depend on the space but will involve all essential elements of the building such as works to the flooring, ceiling, fire and safety facilities, mechanical and electrical services, walls, reception and lifts.
Once the CAT A works are finished, the workspace will have all the fundamentals in place but no furniture or aesthetic features. This leaves a blank canvas for the prospective tenant to carry out the CAT B fit-out.
CAT B Fit-Out
The responsibility of a CAT B fit-out lies with the tenant. Therefore, the cost of the project is down to the tenant, giving them the freedom to design the space.
The new tenant will work with an office interior design company to turn the blank canvas into their own workplace design. This will also need a space plan to ensure it facilitates the tenant’s unique working practices.
With a change in the market, landlords have listened to the demand and now offer an alternative to the traditional CAT A and CAT B model. As tenants are becoming increasingly reluctant to deploy their own capital for a CAB B fit-out, landlords are now presenting pre-fitted spaces that are ready for the tenants to move into. These spaces are available on shorter term contracts, reducing the level of risk for those who occupy them.
A CAT A Plus workspace comes fully furnished and connected with Wi-Fi. Tenants can move in, plug in their devices and get on with their daily tasks. These spaces are also referred to as “plug and play” offices.
The Benefits of CAT A Plus
Here we break down the benefits of a CAT A Plus fit-out from the perspective of the tenant and the landlord …
Benefits for tenants:
- Reduced Costs
- Flexible Leasing
- Greater Privacy
- Less Hassle
Benefits for landlords:
- Fast Letting
- Higher Rent Charges
If you’re a landlord, then this could be a great way to capitalise on a rapidly changing market and make the most of your investment.
If you need help with your fit out project, then Rap’s team of dedicated experts can help. To book your free design consultation, please email email@example.com or call 0333 600 1234.