What is Cat A+?

Cat A+ is seen as a hybrid between a Cat A and Cat B fit out. It is a solution which serves as a middle ground for landlords and incorporates design features that allows the space to be ready for immediate tenancy.

With rising expectations from tenants, especially when assessing their options whilst looking to take brand new office spaces, landlords have begun to keep up with the market demands by incorporating Cat A+ schemes to appeal to a wider pool of potential tenants.

The more flexible model has attracted several businesses in London, showing an increase by 25% in just two years. The Cat A+ model is also a popular investment solution for vacant space which has been on the market for a long time.

What are the benefits?

• Bridges the gap between Cat A and B fit outs

Cat A + programmes bridge the gap between Cat A and B fit outs to appeal to potential tenants from a cost saving aspect. This means there is essentially no need to invest in a full Cat B fit out but rather opt for a much more financially manageable solution - the option of moving into a space which is already functional. This adds a huge element of flexibility to both short-term and long-term property strategies.

• Reduces Building voids

For a landlord, a Cat A+ solution will also reduce building voids and therefore decrease vacancy rates whilst improving the leasing capability of a building.

• Faster rate of occupancy

Tenants can also move in very quickly, so Cat A+ schemes appeal to a broader scope of potential occupiers, meaning a faster rate of occupancy. Upfront costs are also reduced because landlords can benefit from charging higher rent rates due to lower expenditure for tenants at the beginning.

• Amazing quality

This kind of hybrid sit out solution maintains its quality because the design is typically quite simple and classic, making it future proof and built to last, as opposed to being built to last the length of a typical five or ten year lease.

• Improves sustainability

Cat A + schemes can also improve sustainability as they should always meet green office standards, adding to the overall energy efficiency of the building. This in turn provides a strong marketing strategy which will appeal to all perspective tenants.

• Affordable for start-ups/smaller companies

Furthermore, start-ups and smaller companies that may have been unable to afford a Cat B fit out can now benefit from a ready and waiting blank canvas office. Landlords that face the challenge of the co-working sector having previously been the only serviced-style office solution for smaller businesses can now enjoy the benefits of boutique or more agile companies adding to their pool of interested perspective tenants.

What are the cons?

• More expensive in the long term

Although a Cat A+ offering has lower upfront costs, over time it often costs more. A comparable example would be renting versus buying a house: renting is cheaper initially, but more expensive in the long term.

• Lack of customisability

Another key disadvantage is the lack of customisability. Landlords often have strict rules regarding what can and can’t be modified within the space, which tend to be restrictive. With the contemporary workplace’s ever-growing emphasis on culture and employee experience, as well as the rise of hybrid working meaning engagement is more important than ever, the need for companies to have a workspace where their staff feel at home has never been more important. This is very hard to create in Cat A+ workspaces, which tend to be generic in order to appeal to a variety of potential tenants.