If building grades leave you mystified, you’re not alone. Take a CAT B fit out for example. Clients are often surprised to learn that the grade of a building significantly affects costs. But how and why does the grade impact your project? There’s a lot of factors at play: base build quality, infrastructure, and compliance requirements. Over the years, we’ve dealt with them all and we know how they can influence costs and budget for different reasons.
Let’s take this grade by grade:
Grade A Buildings
These buildings, as you’d expect, offer high-end quality. As premium spaces they’re either new or exceptionally well maintained. With a Grade A building, you’re buying or renting the highest standard – and that applies to construction and finishes. They’re often in prime locations like business districts or central areas. Top-notch amenities make them a popular choice for those with the right budget, and they’re equipped with the likes of advanced HVAC systems, high-speed lifts, modern security systems, and even on-site fitness centres and cafes. The maintenance standards are excellent, and the management services are too. If we’re looking at rental costs, these buildings cost the most due to all these premium and desirable features.
Looking at a Grade A building through a CAT B fit out lens
It’s reassuring to know that the high base build quality means it’s less likely you’ll encounter situations resulting in major structural or mechanical & electrical upgrades. The modern HVAC and services reduce costs as you’ll need fewer (or no) new installations. It’s worth noting that fit out costs may increase due to higher landlord expectations for finishes, as these building are all about premium materials and features. Overall, you can expect a smoother fit out process – there’ll be less remedial work, faster approvals, and fewer compliance issues.
Impact on cost at a glance: ££ Medium- £££ High
While structural modifications are minimal, premium finishes, tech integrations, and brand alignment drive up costs.
Grade A buildings reduce infrastructure upgrade costs, but premium expectations increase fit-out costs.
Grade B Buildings
These buildings strike a balance between quality and affordability. While they may not boast the same level of luxury as Grade A spaces, they still offer solid construction and a functional layout. Typically, these buildings are a little older, but they’re well-maintained and provide a reliable, comfortable space. You’ll find them in slightly less prestigious areas, though still within established business districts, making them an appealing option for those seeking good value. The amenities, while not as sleek as those in Grade A buildings, still serve their purpose, with basic lifts and common areas that get the job done. Maintenance is generally up to standard, though it may not quite match the high levels seen in Grade A. When it comes to rent, Grade B buildings come in at a more reasonable price, offering a solid option for businesses looking for functionality while being mindful of costs.
Looking at a Grade B building through a CAT B fit out lens
With older mechanical and electrical systems, you may face the need for upgrades to electrical or HVAC infrastructure. While the finishes offer more flexibility in material choices, you might need to invest in some aesthetic improvements to bring the space up to date. The layout may offer less efficient floor plans that could require structural changes or reconfigurations. Compliance issues, particularly around fire safety, accessibility, and sustainability, could add additional costs to the equation.
Impact on cost at a glance: ££ Medium
The need for upgrades and compliance adjustments means higher investment, but the flexibility in finishes and layout options helps to keep costs in check.
Grade B offers a balance of moderate upgrade needs and flexible design choices.
Grade C Buildings
These buildings are the more budget-friendly option, often offering basic or older spaces that may need a bit of TLC. These buildings tend to show their age, with outdated designs and finishes that reflect their history. Located in less sought-after areas—often on the outskirts of business districts or in secondary locations. The amenities are minimal, and the building’s overall condition may not be as well-maintained, which can lead to some visible signs of wear and tear. Maintenance might not be as consistent as in higher-grade buildings, meaning tenants could face occasional repairs or upkeep issues. With that said, these buildings are typically the most affordable option when it comes to rent. They’re a viable choice for if you’re willing to trade a few comforts for lower costs.
Looking at a Grade C building through a CAT B fit out lens
With aging infrastructure, you’ll likely face substantial costs for upgrading mechanical and electrical systems, HVAC, and ensuring fire safety compliance, so you’ll need to budget for these. The poor space efficiency could lead to high reconfiguration costs, from rearranging walls and ceilings to updating flooring. The outdated aesthetic will require a significant investment in modernising the appearance to meet today’s standards. Unexpected costs and delays due to asbestos or structural issues could complicate but not derail your fit-out process.
Impact on cost at a glance: £££ High
Extensive remedial work, compliance requirements, and necessary upgrades will drive up overall fit out costs.
Grade C leads to higher costs due to remedial work, compliance, and modernisation.
Ultimately, you want a grade of building that balances cost, quality, and functionality. Grade A buildings may have higher fit-out costs, but their modern infrastructure and premium finishes can help reduce the need for costly upgrades. Grade B strikes a sweet spot, offering flexibility in design while requiring only moderate investment in upgrades. On the other hand, Grade C buildings come with a bigger price tag due to the need for significant remedial work, compliance adjustments, and modernisations. Your budget and vision are the key to transforming these spaces. We can help you understand the grade of the building you’re working with, so you experience a fit out without any surprises along the way. Get in touch and we can partner with you to make sure your workspace works harder.
