In summary
- Cat A and Cat B are market conventions: professional industry literature explicitly states that no standard definition exists and that the scope must be specified in the contractual documents.
- In Milan and Rome, a mid-standard fit out costs €1,250/sqm in 2026, with reinstatement estimated at €135/sqm (Cushman & Wakefield, Office Fit-Out Cost Guide 2026, Italy).
- The EMEA average for a mid-quality corporate office is €1,960/sqm, up 5–7% year on year; mechanical and electrical systems, security, IT and audiovisual systems account for more than 40% of the total cost (JLL, May 2026).
- The building management system has a reference standard (ISO 16484 series) and is subject to a European requirement: Directive (EU) 2024/1275 requires automation and control systems in non-residential buildings above 290 kW from 31 December 2024 and above 70 kW from 31 December 2029.
- Meeting pods and phone booths have had a comparable measurement method since 2020 with ISO 23351-1, which classifies speech level reduction into classes from A+ to D. Of eleven booths tested in the laboratory, the measured values range from 15.0 to 30.3 dB, with five products in the lowest class and none in A+.
Why these six terms belong together
Anyone fitting out an office encounters these six terms in the same quote. The first three describe the layers of the work: fit out is the process, while Cat A and Cat B are the two levels into which the UK market divides it, with direct implications for who pays and what remains at the end of the contract. The other three describe the equipment: the system that manages building systems and energy consumption, and the two acoustic furnishings that have changed the ergonomics of open-plan offices.
Part 1 of this dictionary covers management and service models. Part 2 moves into fit-out works and technical equipment, with 2026 costs for Milan and Rome where available.
Office Fit out
Definition. The process of making a building’s interiors suitable for occupation after completion of the shell and core. The most widely used operational definition in the UK market describes it as the completion of the internal spaces after the developer has delivered the building envelope. No ISO or EN standard defines the term. The professional reference is the British Council for Offices’ BCO Guide to Fit-Out.
History. The BCO published an edition of the Guide to Fit-Out in 2011. On 30 January 2025, it launched the third edition, the first update in fourteen years, developed under the leadership of Neil Pennell (Landsec) and Peter Williams (Stanhope) with contributions from more than one hundred professionals, and with an explicit focus on hybrid working models and the net zero transition. For end-of-lease obligations, the reference is the RICS Dilapidations standard, seventh edition, published in September 2016 and effective from 1 December 2016, reissued as a professional standard in December 2023.
Usage. Fit out is contractually defined around three points: the scope of works, who finances them, and what happens at the end of the lease. The latter is addressed through dilapidations, which RICS defines as the process associated with alleging a breach of lease obligations concerning the condition or use of the property, typically formalized in a Schedule of Dilapidations. RICS distinguishes between an interim schedule, prepared during the lease, and a terminal schedule, prepared at expiry and setting out handback and reinstatement obligations.
Advantages. A well-specified fit out aligns the space with actual work processes, brings building systems and furnishings into a single budget, and produces the technical documentation needed for certifications and maintenance. The prerequisite is contractual clarity on the scope, since market terminology leaves room for interpretation.
Bibliography.
- British Council for Offices, Guide to Fit-Out, 3rd edition, 2025. bco.org.uk/publications/about-our-guides/guide-to-fit-out
- JLL, EMEA office fit-out costs guide 2026, May 14, 2026. jll.com/en-uk/guides/emea-fit-out-costs-guide
- RICS, Dilapidations, RICS professional standard, England and Wales, 7ª ed., 2016, reissued 2023. rics.org
Category A fit out
Definition. Fit-out level that makes a space marketable, delivered by the landlord or developer. Typical elements include raised floors, basic suspended ceilings, lighting (usually linear), mechanical and electrical services distribution, heating and cooling, fire protection systems, basic surface finishes and window coverings.
The most important point about this category is its nature: industry literature states that no standard definition exists and that the contractual documentation must specify the exact scope. Treating Cat A as a standardized specification leads to comparisons between non-equivalent offers.
History. The BCO document that guides the specification of office buildings is the Guide to Specification, in the 2019 edition, with an update announced on 16 February 2023. That update increased the reference occupancy density from 8 to 10 sqm per person, set BREEAM Excellent and five-star NABERS UK as the minimum targets for new buildings, reduced small power from 100 to 60 W per person, and extended structural spans to 6.0 and 7.5 meters to facilitate the use of alternative materials such as timber. The Cat A+ appears in professional literature in 2023, described by Brodies LLP as a hybrid between Cat A and Cat B, often referred to as plug-and-play space, with kitchens, amenities, partitions, IT infrastructure, furniture and fully completed building systems.
Usage. In a negotiation, Cat A defines the starting condition delivered by the landlord. With Cat A+, the landlord also funds the final fit out, and as Brodies notes, the tenant does not incur upfront fit-out costs, while the financial terms change in terms of rent and incentives because the landlord must recover its investment.
Advantages. For occupiers, a well-documented Cat A space reduces uncertainty around the building systems baseline and makes it possible to estimate customization works accurately. Cat A+ eliminates the construction phase and shortens move-in times.
Bibliography.
- British Council for Offices, Guide to Specification, ed. 2019 with the 2023 update. bco.org.uk/publications/about-our-guides/guide-to-specification
- British Council for Offices, BCO announces new recommendations for greener and healthier offices, February 16, 2023. bco.org.uk
- Hall, L. e Hunter, P., Plug and play (Cat A+) fit-out, Brodies LLP, October 23, 2023. brodies.com/insights/real-estate/plug-and-play-cat-a-fit-out/
- Designing Buildings Wiki, Fit out of buildings (on the absence of a standard definition). designingbuildings.co.uk/wiki/Fit_out_of_buildings
Category B Fit-Out
Definition. Completion of the space according to the specific needs of the occupier. Typical elements include partitions for enclosed offices and meeting rooms, final finishes, branding, signage and wayfinding, furniture and FF&E, kitchens and refreshment areas, reception, dedicated lighting, power and data distribution, access control, ICT and audiovisual equipment.
Storia. La nomenclatura Cat A e Cat B si è consolidata nella pratica del mercato britannico degli uffici e viene descritta in modo convergente dalla letteratura professionale, con la precisazione che una fonte normativa non esiste. Nessun documento reperibile attribuisce la coniatura della coppia terminologica a un ente o a una data.
Usage. Cat B is financed by the occupier, while Cat A remains the landlord’s responsibility. With Cat A+, the landlord funds the fit out upfront and recovers the investment through rent and incentives. Three elements should be defined during negotiations: the exact scope of works, any landlord contribution, and the obligation to remove the fit out at the end of the lease, which the market quantifies as reinstatement.
Advantages. Cat B is the part that translates the organization of work into space: the ratio between workstations and meeting rooms, density, focus areas and brand expression. When managed well, it is also the lever that reduces the total floor area required, because it allows functions to be sized according to actual use.
Bibliography.
- Durksen, J. e Rimmer, J., Office fit-out: what’s the difference between a Cat A and Cat B?, M Moser Associates, October 25, 2023. mmoser.com/ideas/office-fit-out-difference-cat-a-and-cat-b/
- Cushman & Wakefield, Office Fit-Out Cost Guide, Italy, 2026. cushmanwakefield.com/en/italy/insights/office-fit-out-cost-guide
- RICS, Dilapidations, 7ª ed., 2016, riemessa 2023. rics.org
Methodological note: typical Cat B construction timelines and the quantitative relationship between landlord contributions and rent-free months circulate in anecdotal form. The primary sources consulted do not provide verifiable benchmark values, so they should be assessed on a case-by-case basis.
Building management system (BMS)
Definition. A system that monitors and controls a building’s systems (heating and cooling, ventilation, lighting, energy, access and fire safety) from a single supervisory platform. The internationally standardized term is BACS, Building Automation and Control Systems, covered by the ISO 16484 series. Part 1, in the ISO 16484-1:2024 edition, specifies the guiding principles for system design, engineering, installation and completion, as well as for integrating other systems into it.
History. In 1883, Warren S. Johnson patented the electric tele-thermoscope, the first electric room thermostat; in 1885, he founded the Johnson Electric Service Company in Milwaukee with William Plankinton. In 1922, the pneumatic system was introduced, with claimed fuel savings of up to 35%. In 1972, the JC/80 became the first minicomputer for building systems control, with a claimed 30% reduction in energy consumption. In 1990, Metasys debuted, integrating climate control, energy, lighting, fire safety and security.
On the protocol side: in June 1987, the BACnet project committee met for the first time in Nashville; in 1995, the first publication of ANSI/ASHRAE Standard 135 (BACnet) was issued, with the current ANSI/ASHRAE 135-2024 edition published on 31 December 2024. On 19 November 2003, ISO 16484-5:2003 on the data communication protocol was published, now replaced by the 2022 edition. KNX was established as an association in 1999 through the convergence of EHS, BatiBUS and EIB/Instabus, and its application layer is standardized by ISO/IEC 14543-3-1:2006. LonWorks is standardized by ISO/IEC 14908-1:2012.
Usage and European requirement. Directive (EU) 2024/1275 on the energy performance of buildings requires BACS in non-residential buildings with an effective rated output above 290 kW from 31 December 2024, and above 70 kW from 31 December 2029, with a general transposition deadline of 29 May 2026. The required capabilities include continuous monitoring, logging, analysis and adjustment of energy consumption, efficiency benchmarking, fault detection, interoperability between systems from different manufacturers, and indoor environmental quality monitoring by 29 May 2026. The framework originates from Directive 2010/31/EU, as amended by Directive 2018/844/EU, and is linked to the voluntary European smart readiness rating scheme established by Commission Delegated Regulation (EU) 2020/2155 of 14 October 2020.
Advantages. Measured rather than estimated consumption, faults detected before service disruption, comfort regulated by zone and time of day, and historical data that can be used for energy certifications and sustainability reporting. For occupiers in a building equipped with a BMS, the most immediate practical benefits are greater stability in thermal and acoustic comfort and greater transparency around energy costs.
Bibliography.
- ISO, ISO 16484-1:2024 Building automation and control systems (BACS).Part 1: Project specification and implementation, 2024. iso.org/standard/84890.html
- European Parliament and Council, Directive (EU) 2024/1275 on the energy performance of buildings (recast), 24 April 2024. eur-lex.europa.eu/eli/dir/2024/1275/oj
- BACnet Committee, About the BACnet Standard. bacnet.org/about-bacnet-standard/
- Johnson Controls, Our Founder e History. johnsoncontrols.com/about-us/history
Meeting pod
Definition. An enclosed booth located within an open environment, sized for short meetings of two to six people, with acoustic insulation, ventilation, lighting and power supply. The international reference standard for performance is ISO 23351-1:2020, published on 30 June 2020, which establishes the laboratory method for measuring the reduction in occupants’ speech level provided by furniture assemblies and enclosures, excluding individual components such as screens and panels. The measured quantity is speech level reduction, indicated as D(S,A) and expressed in decibels.
History. Framery was founded in Finland in 2010 following an episode documented by the company: the founders were working in an open-plan office, asked their boss to move elsewhere to make phone calls, and were told, “buy me a phone booth.” The first prototype was called Pömpeli, Finnish for box, and the first customer was that same boss. Framery O followed in 2013, with a claimed 30 dB reduction. In 2021, Framery One introduced the connected generation. In 2024, the company reported having produced more than 110,000 booths in total. The publication of ISO 23351-1 in 2020 marked the point at which the category’s acoustic performance claims became comparable.
Usage. Pods are sized according to the ratio between workstations and booth seats, and serve two distinct functions: calls and video calls that would otherwise disturb the open environment, and short meetings that do not justify using a meeting room. The technical selection criteria are the declared ISO class and corresponding decibel value, together with air exchange and ventilation noise levels.
Advantages. Reduced noise pollution in the open-plan office, immediate availability of a private space without booking, installation without construction work, and the ability to reposition the booth. From a real estate perspective, pods provide privacy within an open layout without altering partitions, thereby avoiding reinstatement obligations.
Bibliography.
- ISO, ISO 23351-1:2020 Acoustics. Measurement of speech level reduction of furniture ensembles and enclosures.Part 1: Laboratory method, 2020. iso.org/standard/75299.html
- Hongisto, V. e Keränen, J., Acoustic performance of eleven commercial phone booths according to ISO 23351-1, Research Reports from Turku University of Applied Sciences 51, 2020.
- Framery, 15 Years of Inventing Quiet: How Framery Created the Office Pod, June 4, 2025. framery.com
Framery’s claim to have produced the world’s first commercial booth is a statement made by the company about itself and should be attributed accordingly.
Phone booth
Definition. An acoustic booth for one person, sometimes two, located in an open office for phone calls and video calls, with ventilation, lighting and power supply. Performance is measured and classified under ISO 23351-1:2020, as with meeting pods. No standard defines the term itself, and ISO refers to furniture ensembles and enclosures.
History. The product’s origin is a literal reference to the phone booth, as recounted in Framery’s 2010 story. On 15 August 2018, TechCrunch documented the launch of ROOM, founded in New York by Morten Meisner-Jensen and Brian Chen: ROOM One was priced at $3,495 with free shipping, compared with $6,000–$12,000 for competitors at the time, made from recycled plastic bottles and designed to be assembled in under thirty minutes. At the time, the company was less than a year old, had a revenue run rate of $10 million and around 200 customers. The same article cites Harvard research showing that open-plan offices had reduced face-to-face interaction by 73%, shifting communication to email. With ISO 23351-1 in 2020, the category gained a comparable measurement method.
Usage. The typical setup for an open-plan floor provides one booth for every ten to twenty workstations, calibrated according to the intensity of video calls. The key selection criterion is the measured speech level reduction declared under ISO 23351-1: across eleven commercial booths tested in the laboratory, values range from 15.0 to 30.3 dB, with five products in class D, two in C, three in B, one in A and none in A+. The same study found a statistical correlation between booth floor thickness and acoustic performance, while total mass and external volume were not correlated.
Advantages. Immediate privacy without booking, reduced disturbance for nearby workers, reversible installation, and a unit cost comparable to that of a furnished workstation. In serviced office contracts, booths are provided as part of the shared space, so they do not fall within the occupier’s CAPEX.
Bibliography.
- ISO, ISO 23351-1:2020, 2020. iso.org/standard/75299.html
- Hongisto, V. e Keränen, J., Acoustic performance of eleven commercial phone booths according to ISO 23351-1, Turku University of Applied Sciences, 2020.
- TechCrunch, To fight the scourge of open offices, ROOM sells rooms, August 15, 2018. techcrunch.com/2018/08/15/room-phone-booths/
How much does it cost to fit out an office in Italy in 2026
| Item | Value | Source,year,scope |
| Low-standard fit out | 850 €/sqm | Cushman & Wakefield, 2026, Milan and Rome |
| Mid-standard fit out | 1.250 €/sqm | Cushman & Wakefield, 2026, Milan and Rome |
| High-standard fit out | 1.600 €/sqm | Cushman & Wakefield, 2026, Milan and Rome |
| Reinstatement | 85 / 135 / 210 €/sqm | Cushman & Wakefield, 2026, Milan and Rome |
| Cost increase compared with 2025 | +3.8% average, mainly driven by labor costs | Cushman & Wakefield, 2026, Italy |
| EMEA average, mid-quality corporate office | €1,960/sqm, +5–7% year on year | JLL, 14 May 2026, EMEA |
| Share of M&E, systems, security, IT and AV | more than 40% of total expenditure | JLL, 2026, EMEA |
| FF&E | share approximately 14% of project costs | JLL, 2026, EMEA |
FAQ
Who pays for an office fit out?
Cat A is financed by the landlord to make the space marketable. Cat B is financed by the occupier. With Cat A+, the landlord also funds the final fit out upfront and recovers the investment through rent and incentives.
Are Cat A and Cat B official standards?
No. Professional industry literature states that no standard definition exists and recommends specifying the exact scope in the contractual documents.
How much does a fit out cost in Milan in 2026?
According to Cushman & Wakefield, the mid-standard level is €1,250/sqm for Milan and Rome in 2026, with a range from €850 to €1,600/sqm depending on the specification.
Is a building management system mandatory?
Directive (EU) 2024/1275 requires it for non-residential buildings with an effective rated output above 290 kW from 31 December 2024 and above 70 kW from 31 December 2029.
How do you compare two acoustic booths?
Based on the speech level reduction value measured according to ISO 23351-1 and the corresponding class, from A+ to D. Generic decibel claims without reference to the standard are not comparable.
Continue reading
Part 1 of the dictionary covers management and service models: office management, facility management, tenant experience, flex office, Office as a Service and plug & play office. Part 3 concludes the series with metrics and certifications: occupancy rate, vacancy rate, desk sharing, hot desking, ESG office, WELL and LEED.
If you are comparing fitting out a space with moving into an already equipped office, contact Stella33 to compare the numbers for your specific case.