Schedule of Condition for Office Premises

What an office schedule of condition is

A schedule of condition for office premises is a structured record of the demised area at a fixed point in time. It is prepared by a chartered building surveyor and is intended to operate alongside the lease. The document records what is present, what is already worn or damaged, and what cannot be inspected on the day. It does not record opinions on suitability or value.

The general structure of the document, the cross-referencing of imagery, and the level of written observation are described in the schedule of condition report guide. The lease-side considerations sit in the commercial lease guide.

CAT A and CAT B fit-out context

Office space is typically delivered to a tenant in one of two states. CAT A is the developer or landlord finish — raised floor, suspended ceiling grid, lighting, primary mechanical and electrical services, and base finishes ready for tenant fit-out. CAT B is the tenant-specific fit-out installed on top of CAT A — partitioning, joinery, kitchenettes, branded finishes, meeting rooms, IT cabling, and the rest of the operational layout.

The position recorded affects the reinstatement argument at lease end. A tenant who took a CAT A unit and installed CAT B faces a different reinstatement profile from a tenant who inherited a CAT B fit-out from the previous occupier.

What an office schedule of condition typically records

The scope of an office schedule of condition is shaped by the demise, the lease, and the elements most likely to become contentious at expiry. A typical office schedule covers:

• Floor finishes — carpet tiles, vinyl, timber, screed, and the condition of the raised floor where accessible.
• Wall finishes and partitioning — plasterboard, paint, demountable partitions, glazed screens, and any tenant-installed walls.
• Suspended ceilings — tile condition, grid alignment, water staining, and missing or replaced tiles.
• Lighting and small power — luminaire condition, cabling visible above ceilings, and tenant additions.
• Sanitary fit-out and kitchenette areas — tiling, sanitaryware, taps, cupboards, worktops, and integrated appliances.
• Joinery and ironmongery — door sets, frames, vision panels, locks, closers, and skirtings.
• Glazing and internal screens — frames, seals, manifestation, and cracked or scratched panels.
• Visible mechanical and electrical services — VRF cassettes, fan-coil units, grilles, sprinklers, fire alarm devices, and access panels.
• Plant rooms, risers, and roof plant where access is permitted.
• Access limitations and items that could not be inspected on the day.

The photographic record at lease commencement

Office finishes degrade across a typical lease term. Carpet tiles wear, ceiling tiles are removed and replaced during cabling works, raised floor panels are lifted repeatedly, painted partitions show furniture marks, and door sets accumulate scuffs around handles and closers. A clear photographic record dated to lease commencement is the only practical way to evidence what was already present.

The record should be cross-referenced to written observations and to a floor-by-floor location plan, so that any item raised in a later schedule of dilapidations can be traced back to the photograph that shows its starting condition. The general approach is described in the photographic schedule of condition guide.

The licence to alter and reinstatement

During the term, an office tenant typically installs partitions, joinery, additional sanitary or kitchenette areas, supplementary cooling, and IT infrastructure. Those works are usually carried out under a licence to alter. The licence records what the tenant installs and, in most cases, requires the works to be removed at lease expiry and the demise reinstated.

Read against the schedule of condition, the licence defines the reinstatement obligation precisely. The schedule fixes the condition at the start. The licence records what was added during the term. The tenant is required to return the demise to the recorded starting condition, allowing for fair wear and tear where the lease permits it.

How it operates at lease expiry

At lease expiry, the surveyor acting for the landlord prepares a terminal schedule of dilapidations and a quantified demand. Each item in that schedule is tested against the lease, the schedule of condition, the licences to alter, and any supersession argument arising from the landlord intentions. The reinstatement of the office fit-out is typically the largest single category.

• The schedule of condition is referenced item by item against the alleged breaches in the terminal schedule.
• Pre-existing wear, damage, and prior repairs documented at the start are removed from the recoverable scope.
• Section 18 of the Landlord and Tenant Act 1927 caps the recovery against the diminution in reversionary value.
• Supersession applies where the landlord intends to refurbish or strip the floor for the next tenant.
• The opening figure in the landlord demand is rarely the recoverable figure once these tests are applied.

Why it matters for central London office tenants

Office stock across the City, the West End, Mayfair, and Soho is typically refurbished on a short cycle. Floors are stripped between tenants, ceilings are replaced, services are upgraded, and CAT A is renewed before the next letting. Within that pattern, the schedule of condition has two practical effects for the tenant. It anchors the repair obligation to the actual condition at the start of the term. It also gives the tenant a structured baseline against which a later reinstatement demand can be tested.

For tenants taking shorter leases, the proportionate cost of the schedule is small against the potential reinstatement cost of a CAT B fit-out at expiry. For tenants taking longer leases, the document is the only contemporaneous record of what was present at the start of a term that may run for ten or fifteen years.

For related local context see the schedule of condition area pages for Mayfair, London, and the wider service overview at the schedule of condition service.