Traditionally very few Landlords entertained CAT B fit outs, preferring to create clear boundaries between ‘Landlord CAT A’ and ‘Tenant CAT B’ projects. CAT A projects would tend to be procured through the traditional route with architects, cost consultants, quantity surveyors and project managers all being employed to manage the process. Meanwhile many CAT B fit outs would be secured via the design and build route directly with the end user tenant.
Today, the rise in the flexible office market has determined that landlords need to compete and rethink their market strategy. CAT A+ is the link between CAT A and CAT B, whereby landlords offer a fitted space to their tenants.
Unlike many serviced offices, CAT A+ allows tenants to have a space that they can call their own and can implement their own identity. This offering also allows tenants to visualise the space and move in quickly, avoiding having to offer extensive rent-free periods, as would usually be the case with traditional leases.
Despite the additional expenditure initially, in theory CAT A+ allows landlords to increase their return on investment in the short to medium term due to increased rental premium, reduced rent free and a reduction in the void period.
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