As the office space world continues to evolve, so does the terminology. For occupiers, navigating terms like ‘CAT A’ and ‘Plug and Play’ can be confusing. Here’s a concise guide to help you understand the most common terms:
Fit-Out Terminology
- CAT A: The Landlord provides an open plan space, at their cost, which usually includes new carpets, painted walls, and lighting. This is essentially a blank canvas.
- CAT A+: An upgraded version of CAT A, where the Landlord includes additional fit out like meeting rooms and kitchens but no furniture.
- CAT B: The Tenant takes on the responsibility of fitting out the space. This includes meeting rooms, kitchens, and furniture.
- Plug & Play / Fitted & Furnished: Similar to CAT A+, but the Landlord also provides furniture. It’s ready for immediate use.
Lease and Occupational Terms
- All Inclusive: This term can be somewhat ambiguous, but it generally means the rent covers occupational costs such as – rent, service charge, insurance, and utilities (and sometimes internet).
- Managed: A product that aims to cover all needs, even down to ordering tea and coffee! There’s typically a base cost, similar to the All Inclusive package, along with a list of add on services.
- Serviced: Operates similarly to a managed office but offers even greater flexibility with licence terms as short as 6 months. In this arrangement, the occupier enters into a license agreement with a serviced office provider (e.g. Regus), rather than signing a lease directly with a landlord.
- Dilapidations: At the end of your lease, you may be required to restore the premises to its original condition as per the lease agreement. This often involves removing fit out, repainting, and re-carpeting.
- Alienation: This has nothing to do with extraterrestrials… it’s a legal term that refers to your ability to assign or sublet your lease to another party.
- Licence to Alter (LTA): A legal document required to authorise Tenant fit out works (CAT B).
Building Services
- HVAC: In simple terms, it’s how your office will be heated, cooled and ventilated. Heating, Ventilation and Air Conditioning is what it stands for.
- M&E: Short for Mechanical and Electrical. This encompasses HVAC as well as lighting and other mechanical systems.
- RAF: It has nothing to do with the Royal Air Force—it stands for ‘raised access floor.’ This is the preferred method, as opposed to perimeter trunking, for providing power and data cabling to desks.
Sustainability and Environmental Performance
- NABERS: The National Australian Built Environment Rating System evaluates a building’s environmental performance on a 6-star scale. For example, a property might aim for a 5-Star NABERS rating. This system is gaining traction in UK developments due to its superior accuracy compared to traditional Energy Performance Certificates (EPCs).
- BREEAM: Stands for Building Research Establishment Environmental Assessment Method. It evaluates the sustainability performance of buildings and is often a condition for planning permission.
- Net Zero Carbon (NZC): A term used by Landlords and developers to indicate that their building has achieved net zero carbon emissions, typically for energy usage (operational carbon) and increasingly for construction materials (embodied carbon).
There are many more terms, but this list covers the essentials.
If you’re an occupier or Landlord seeking advice, we’re here to help. Visit our services page to learn more and get in touch with our team.
