Commercial landlords face increasing pressure to deliver office spaces that attract and retain quality tenants. Understanding fit-out specifications (from basic Cat A to fully customised Cat B) is essential for maximising rental yields and minimising void periods.
A strategic landlord fit-out can transform an empty shell into a desirable workspace that commands premium rents. This comprehensive guide explains what landlord fit-outs involve, the differences between Cat A, Cat A+ and Cat B specifications, and how the right approach improves occupancy rates and long-term returns.
Whether tenants are searching for move-in-ready spaces or planning their own tenant fit-out projects, landlords who understand these requirements can position their properties more effectively in competitive markets.
What is a Landlord Fit-Out?
A landlord fit-out refers to the process of preparing and upgrading office space so it is ready for new tenants. This typically involves structural improvements, technical installations, and aesthetic enhancements. Fit-outs are usually tailored to the expected needs of tenants, helping to make the property move-in ready or adaptable for bespoke design.
Commercial landlords can choose from different fit-out specifications depending on their target market. While tenants may undertake their own tenant fit-out work after moving in, landlords who invest in quality specifications upfront can command higher rents and attract premium occupiers.
Depending on the lease agreement, landlords may deliver a basic office setup or invest in more flexible or fully furnished layouts. These upgrades not only improve the functionality and appeal of a space but can also increase its market rental value.
Types of Fit-Outs Explained
Fit-outs are a broad topic that does require some explaining. Understanding these differences will help you make an informed decision that suits your business needs and general situation.
What is a Cat A Fit-Out?
A Cat A fit-out is the standard commercial landlord offering. It includes:
- Basic electrical and mechanical services (lighting, air conditioning, heating)
- Fire detection and alarm systems
- Suspended ceilings
- Raised access flooring
- Interior wall finishes
- Basic toilets and washrooms
Cat A provides a clean, functional blank canvas that tenants can adapt to suit their own layout and branding. For landlords, this represents the minimum viable specification for most commercial lettings, whilst giving tenants maximum flexibility for their own tenant fit-out projects.
What is a Cat A+ Fit-Out?
A Cat A+ fit-out goes beyond the basics by offering a fully operational workspace. This type of fit-out is aimed at tenants who want a plug-and-play solution with no setup delays.
It typically includes:
- Partitioned meeting rooms
- Pre-installed furniture
- Kitchenette and breakout areas
- Wi-Fi infrastructure
- Power and data points
- Stylish finishes
Cat A+ is ideal for SMEs, startups, or co-working providers who want to avoid the upfront cost of a custom fit-out.
What is a Cat B Fit-Out?
A Cat B fit-out is tailored to the specific needs of an incoming tenant. This option involves a higher level of customisation and typically includes:
- Bespoke furniture and interior design
- Branded spaces and graphics
- IT infrastructure and AV systems
- Specialist lighting
- Layout planning based on company culture and workflows
In a Cat B fit-out, landlords and tenants often collaborate closely to deliver a workspace that reflects the tenant’s brand and working style.
What is a Landlord Contribution to a Tenant Fit-Out?
A landlord contribution, also known as a fit-out contribution or incentive, is a financial allowance provided by the landlord to help cover the cost of fitting out the space to a tenant’s requirements. This is typically agreed during lease negotiations and is intended to make the space more appealing to potential tenants, particularly when the fit-out goes beyond a standard Cat A or A+ configuration.
These contributions can cover:
- Design and construction work
- Furniture
- Cabling and IT
- Signage
- Project management
Offering a contribution can help secure tenants faster and reduce rent-free periods, making it a strategic investment for landlords.
Benefits of a Landlord Fit-Out
Investing in a landlord fit-out offers several commercial benefits:
- Attracts high-quality tenants by presenting a move-in-ready or easily adaptable space
- Increases rental yield by creating a more premium product
- Reduces vacancy times through improved market appeal
- Improves tenant retention by offering a functional and enjoyable working environment
- Futureproofs your property with up-to-date infrastructure and design
- Boosts long-term asset value through capital improvements
By making the space more desirable, landlords can gain a competitive edge in today’s demanding office rental market.
Understanding Tenant Fit-Out vs Landlord Fit-Out Responsibility
The distinction between landlord and tenant fit-out responsibilities significantly impacts lease negotiations and rental values. Commercial landlords who understand tenant fit-out requirements can better position their properties and justify rental premiums.
Landlord fit-out responsibilities typically cover the base building specification (Cat A as minimum), whilst tenant fit-out work involves customisation beyond this standard. However, modern lease negotiations increasingly see landlords offering enhanced specifications or fit-out contributions to secure quality tenants.
Key differences include:
- Landlord fit-out: Structural, mechanical and base specification work completed before letting
- Tenant fit-out: Customisation, furniture, branding and operational setup after lease commencement
- Collaborative approach: Cat B fit-outs, where landlords and tenants work together on bespoke solutions
Smart landlords recognise that understanding tenant fit-out needs helps them deliver more lettable space specifications from the outset.
Workplace Design Fit Outs by Oaktree Interiors
If you’re considering a new landlord or tenant office fit-out, the expert team at Oaktree Interiors can help. We have years of experience delivering high-quality Cat A, Cat A+, and Cat B fit-outs for landlords, commercial developers, and growing businesses across the UK.
Whether you need a complete workspace transformation or a fast, functional upgrade, our team can support your goals with:
- Reconfiguration and space planning
- Interior design and furniture solutions
- Turnkey project management
- Quick turnaround times
Explore our Case Studies to see how we’ve delivered fit-out solutions that exceed expectations. To speak with a team member, call us on 0345 21 86955 or email hello@oaktreeoffice.com.