Reviewed by Clayton Ayling BSc (Hons) MRICS MPTS, Chartered Building Surveyor — Updated 4 August 2026
CAT A and CAT B Fit-Out
The difference between CAT A and CAT B fit-out decides who pays for the works and who removes them at the end of the lease, and the removal is where the cost concentrates. CAT A is the base finish provided by the landlord. CAT B is the tenant fit-out installed on top of it. Stripping CAT B back to CAT A on a full office floor commonly reaches six figures.
The distinction runs through the whole lease. It sets the specification the landlord delivers, the works the tenant funds, the condition recorded at the start of the term, and the standard the premises must be returned to at expiry.
Shell and Core
Structure, envelope, cores, and primary services to the floor. Common parts complete, the floor plate itself unfinished. Not usable as office space.
CAT A
Raised floor, ceiling grid, lighting, primary services distribution, and finished surfaces. A usable open floor, delivered by the landlord.
CAT B
The tenant layout — partitioning, meeting rooms, joinery, kitchenettes, cabling, and branding. Funded by the tenant and normally removed at expiry.
The key point
The CAT A specification the tenant must return the floor to is defined by the lease and the licence to alter, not by whatever happens to be present on the day the lease ends. Where the documents describe a higher CAT A standard than the floor was actually delivered to, the tenant carries the difference.
What CAT A covers
CAT A is the finish a landlord or developer provides to make a floor lettable. It produces an open, serviced, usable space with no occupier-specific layout.
- Raised access floor, with pedestals and panels across the floor plate.
- Suspended ceiling with grid and tiles, set out to the base-build design.
- Lighting to an open-plan layout, with emergency lighting and controls.
- Primary heating, cooling, and ventilation distribution, including terminal units.
- Fire detection, alarm devices, and sprinkler coverage designed for open-plan use.
- Finished internal surfaces, including perimeter walls, columns, and window reveals.
- Completed common parts, lift lobbies, toilets, and shower facilities.
- Blinds or solar control where the specification provides for them.
What CAT A does not include is anything specific to the occupier. There are no internal rooms, no tea points beyond any base provision, no structured cabling for the tenant layout, and no branding.
What CAT B covers
CAT B is the fit-out that turns a serviced open floor into a working office for a particular organisation. It is designed around headcount, working patterns, and brand.
- Partitioning, glazed screens, meeting rooms, and enclosed offices.
- Reception, joinery, storage, and built-in furniture.
- Tea points, kitchenettes, and any additional sanitary provision.
- Floor and wall finishes, including carpet, vinyl, and decorative treatments.
- Supplementary cooling for server rooms, meeting rooms, and high-density areas.
- Structured cabling, containment, and small power to the tenant layout.
- Adjustment of the lighting and ceiling grid to suit the partition layout.
- Alterations to sprinkler and fire detection coverage to suit the enclosed rooms.
- Audio visual, security, access control, and branding.
Almost all of this requires landlord consent, because it alters the demise. The works are carried out under a licence to alter, which records what is installed and states whether it must be removed at the end of the term.
Shell and core
Shell and core sits below CAT A. The structure, envelope, cores, risers, and primary services are complete, and the common parts are finished, but the floor plate itself is not. There is no raised floor, no ceiling, and no lighting or services distribution across the floor.
A tenant taking shell and core space carries out both CAT A and CAT B, usually against a larger landlord contribution or a longer rent-free period. This is more common on pre-lets and on large single-occupier buildings, and it changes the reinstatement position considerably, because elements a tenant would normally return to are elements the tenant installed.
CAT A plus and fitted space
CAT A plus, also described as fitted or plug-and-play space, is a landlord fit-out that goes beyond CAT A. It typically provides meeting rooms, a tea point, furniture, and cabling, so an occupier can move in without a fit-out programme.
The commercial appeal
The tenant avoids the capital cost and the programme of a CAT B fit-out. On shorter leases this can be the difference between taking the space and not taking it.
The lease consequence
The works were installed by the landlord, not the tenant, so they do not sit within a tenant reinstatement obligation. The condition must be recorded at the start, because the tenant is responsible for returning it in the state it was accepted.
A tenant taking fitted space needs a schedule of condition more than a tenant taking CAT A, not less. The floor arrives with finishes, joinery, and services already installed and already worn, and without a record the tenant is exposed to a claim for their condition at expiry.
Who pays for what
The landlord normally provides CAT A as part of the letting. The tenant normally funds CAT B. In practice the boundary is negotiated as part of the deal.
- A rent-free period may be given in place of a capital contribution towards the fit-out.
- A landlord contribution may be paid against an agreed CAT B specification, usually on completion and against invoices.
- Where the landlord funds part of the CAT B works, the arrangement affects rent review and should be addressed in the lease.
- Works funded by the landlord but installed for the tenant need careful treatment in the licence, because who paid and who must remove are separate questions.
Why the distinction matters at lease end
At expiry the tenant returns the premises to the standard the lease and the licences require. On a conventional office letting that means removing CAT B and reinstating CAT A.
Two questions decide the exposure. The first is what the documents define as CAT A, because the tenant returns the floor to the contractual standard rather than to the condition it was actually delivered in. The second is whether the licence requires reinstatement automatically or only on notice from the landlord, because where notice is required and none is given, the obligation does not arise.
Both questions are settled at the start of the term. The mechanics of the strip-out and the cost are set out in office fit-out reinstatement, and the wider claim in office dilapidations.
Taking CAT A space or planning a CAT B fit-out?
The CAT A standard recorded at the start of a lease determines what the tenant returns to at the end of it. Recording the condition before the fit-out begins, and settling the reinstatement wording before the licence completes, are the two decisions that carry the cost.
See the office fit-out surveyor service, the schedule of condition service, and the guide to the licence to alter.
Related knowledge
Compare this article with the nearest matching pages if you want to follow the topic into related surveying questions.
Guide to office fit-out reinstatement at lease expiry — what CAT B strip-out involves, where the obligation comes from, what it costs, and how the claim is tested against the licences, section 18, and supersession.
Guide to the licence to alter for commercial and leasehold property — what the consent covers, when the lease requires it, the cost, the reinstatement obligation it creates at lease expiry, and what a chartered building surveyor assesses that a solicitor does not.
Practical guide to the schedule of condition for office premises — how lease-start evidence can manage repair and reinstatement liability, the CAT A and CAT B fit-out context, photographic evidence, licences to alter, and lease expiry dilapidations.
A practical guide to office dilapidations — typical scope of claims, the central role of fit-out reinstatement, the legal framework, how negotiation usually plays out, and how landlords and tenants plan ahead across an office lease.
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