THE DIFFERENT LEVELS OF OFFICE FIT OUT

There are no standard industry definitions of the different levels of fit out but the four main levels or categories are Cat A, Cat B, Cat A Plus and Shell and Core. If you are unclear what level of office fit out you require then refer to our article explaining the differences between them. Click here to access.

HOW MUCH DOES A CAT B OFFICE FIT OUT COST?

Generally when people are talking about costs for an office fit out they mean a Cat B fit out. This is the work that a tenant does to an office space to make it fit for their business. It could include building management offices, meeting rooms, breakout spaces and kitchen areas. It would then include all the associated changes and additions needed in terms of power, data, lighting, ventilation, heating, cooling, etc.

Obviously the cost per square foot will vary enormously from company to company and from building to building. However as a guide we would normally suggest budgeting around £50 to £100 per square foot depending on what level of finish and functionality you need.

WILL THE OFFICE DESIGN AFFECT THE COST OF THE FIT OUT?

Yes – the design of the office will impact on the cost of the fit out. Obviously if you are wanting luxury materials like marble and leather then this will increase the cost. Also adopting a hybrid or agile office design will also be more expensive per square foot. However if you consider opting for a hybrid workplace model then the size of the office space will decrease. Hybrid working is where persons are allowed to work from the location that works best for them and the business e.g. a split between working from home and working from the office.

HOW MUCH DOES A CAT A OFFICE FIT OUT COST?

A Cat A Office Fit Out is the work that a landlord undertakes to make a building ready to lease to an occupier on a standard multi-year lease. Although there is no standard specification, a Cat A fit out usually include a suspended ceiling, basic lighting, heating and ventilation, and a basic carpet. It’s all pretty basic but provides the essentials. It is then left to the tenant to customise the space and make it their own.

Again it is difficult to give an exact cost to a Cat A Fit Out per square foot but, depending on the standard required a typical cost per square foot would be around £40 to £50.

WHAT ARE DILAPIDATIONS AND HOW MUCH WILL THEY COST?

Dilapidations (also known as 'Dilaps') are the works that a tenant is required to undertake at the end of their lease period. The requirement for dilapidations will be written into the terms and conditions of the lease. Essentially they require an outgoing tenant to put the building back in the state that they found it in. For example if you build walls to create meeting rooms etc then you will be required to remove them again. If the walls have got grubby and scratched over the years then you will need to redecorate them. The landlords surveyor will normally visit to survey the condition of the building and will provide a schedule of items that need to be dealt with. Depending on your landlord it may be possible to negotiate with them and they may allow you to leave elements in place if they are an obvious benefit to the property. It is also possible to negotiate a settlement figure with them which allows you to walk away and leaves them to undertake the Dilaps works.

Obviously the cost of these works vary but typically they would cost between £15 to £25 per square foot.