Office Fit-outs explained: Cat A vs Cat B

What is a Cat A fit out?

By definition, a Cat A fit-out is the second stage in the office space rendering process, just after the shell and core fit-out. This fit-out creates a basic, unadorned office space that provides the necessary structural and functional features without customisation. A Cat A fit-out is often described as a blank canvas fit-out (unfitted office space) and typically includes essentials like raised flooring, suspended ceilings, basic lighting, and HVAC (heating, ventilation, and air conditioning) systems.

Typically, the design is minimal, with neutral finishes, enabling tenants to later add their unique touches. This fit-out is ideal for those looking for cost-effective solutions, especially companies that prefer a functional foundation they can adapt over time. Large organisations seeking versatile layouts and firms moving into new premises with existing furniture also prefer Cat A fit-outs.

Some of Cat A’s characteristics, especially its flexibility and open layout designs, make it a popular choice among developers, offering basic spaces that can be quickly reconfigured according to tenant demands. The one downside is that businesses that need immediate occupancy might find Cat A less suitable, given the additional work required to make the space employee-ready.

What is a Cat B fit out?

A Cat B fit-out is the next level in the office space customisation process. It completes the fit-out transformation and turns a blank canvas into a fully functional, bespoke office. Unlike Cat A, Cat B is tailored specifically to the tenant’s needs, making it ideal for businesses that need a turnkey solution.

A Cat B office fit-out is commonly used in service-based industries and often features everything from partitions and branded décor to furniture, workstations, and specialised lighting. The focus is on creating a unique workspace that reflects the company’s identity and culture. While Cat B fit-outs are typically more costly than Cat A, they offer immediate functionality and a design aligned with the tenant’s operational and branding needs.

The level of Cat B customisation often depends on the company’s needs. In most cases, the tenant is actively involved in the customisation process to ensure the final product meets the employee and client expectations. When the interior finishing and branding are done right, a Category B fit-out is often seen as an investment in employee satisfaction and retention. This helps the company turn a workspace into a valuable part of its asset portfolio.

Differences between Cat A and Cat B fit-outs

There are distinct differences between the two types of fit-outs. A Cat A fit-out covers foundational aspects like electrical systems, HVAC, and bare wall and floor finishes. In contrast, Cat B fit-out add specific design elements, which include customised layouts, branding details, and fully furnished spaces (fitted office space). Below are the other Cat A vs. Cat B fit-out comparison points to keep in mind:

• Budget and cost aspects: Cat A is generally more affordable upfront but requires additional investment to make the space usable. Meanwhile, Cat B incurs higher initial costs but offers a customised and ready-to-use work environment.
• Flexibility: One of the main differences between Cat A and Cat B fit-outs is the level of flexibility. For businesses planning long-term, Cat A fit-outs offer more flexibility and customisation options. On the other hand, Cat B provides more functionality and is ideal for companies seeking a stable, branded workspace with minimal changes over time.
• Time constraints: Businesses needing to move into a new office sooner find the Cat B fit-outs more practical. However, companies that don’t need the space right away can choose a Cat A fit-out and work on the customisation at their own pace.

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FAQs

Can I start with a Cat A fit-out and upgrade to Cat B later?

Yes, many businesses start with a Cat A fit-out to save costs initially and upgrade to a Cat B fit-out once their operational needs and brand identity become clearer.

How do I calculate the ROI of a Cat B fit-out?

To calculate the ROI of a Cat B fit-out, use the formula:

Where:

• Net Benefits = Gains from increased productivity, employee retention, and client impressions.
• Total Fit-Out Costs = The overall cost of implementing the Cat B fit-out.

For example, if the fit-out costs $50,000 and you estimate $10,000 in annual savings from reduced employee turnover and increased productivity, the ROI would be calculated as:

Consider both tangible (furniture, technology) and intangible (employee satisfaction, branding) benefits when calculating ROI.

Are there hybrid fit-out options?

Yes, some companies opt for a hybrid approach by incorporating key elements of Cat B into a Cat A fit-out to balance cost and functionality.

What are some examples of companies successfully using Cat A or Cat B fit-outs?

• Tech startups: Prefer Cat B for vibrant, branded spaces that foster collaboration.
• Financial institutions: Often start with Cat A for cost-effectiveness, upgrading to Cat B as they grow.
• Co-working spaces: Use Cat A+ for flexible spaces that cater to diverse tenants.
• Creative agencies: Choose Cat B for unique layouts that reflect their creative ethos.
• Consulting firms: Start with Cat A for a polished look, transitioning to Cat B for tailored needs.

In short, what is Cat A & Cat B?

A Cat A fit-out involves basic finishing on a shell and core structure, such as adding mechanical and electrical systems. Despite these additions, this fit-out still has limited amenities; hence, incoming tenants must furnish it before moving in.

By contrast, a Cat B fit-out is ready to occupy since it is fully furnished with tailored finishes reflecting the company’s brand, functionality, and culture. Understanding the differences between Cat A and Cat B fit-outs is crucial when choosing the right fit-out for your business. That said, both options enable businesses to optimise their workplace and ensure an environment conducive to work.