A Tenant’s Guide to Landlord-Funded Office Fit Out 

Taking on your first leased workspace, or levelling up from coworking, comes with a long list of questions. One that might catch you off guard is the concept of a landlord-funded office fit out. What does it actually mean? Who pays for what? And how much say do you get in the final design? 

If you’re new to this setup, this guide is for you. We’ve broken down the process in plain terms so you can make confident decisions about your next office move.  

What is a Landlord-Funded Fit Out? 

Traditionally, when a company signs a lease, they receive an empty or minimally fitted space, known as Cat A or pre-used Cat B, and are responsible for turning it into a functional office. This usually means hiring a design and build team, investing capital up front, and managing the fit out process themselves. 

Landlord-funded fit outs flip that model. The landlord agrees to pay for most of the works, usually covering everything from layout to lighting. In many cases, tenants can still influence the design by selecting preferences such as meeting room counts or finishes. It’s a way to reduce costs and responsibility without compromising on functionality. 

In practical terms, this often looks like the landlord covering an agreed amount (e.g. £80 per sq ft) to deliver a base level of fit out, while the tenant may choose to invest more for tailored enhancements. These additions could include anything from branding details to extra tech and bespoke joinery. Sometimes this happens under a single contract, but it’s also common to split the agreements, one between the landlord and contractor, and another directly between the tenant and contractor for the extras. 

Is it Right for You? 

A landlord-funded fit out is beneficial for businesses that: 

• Don’t have the capital or desire to manage a full office fit out themselves 

• Are growing fast and need to move quickly 

• Want a say in the look and feel, without full creative control 

• Prefer fewer moving parts in the process 

• Need confidence that costs won’t spiral 

It’s also ideal for those upgrading from coworking or taking on their first office, where the idea of managing a full design and build project can be overwhelming. 

What are the Trade-Offs? 

Like any workspace model, this one has its limitations. It’s not the same as designing from scratch. Depending on the landlord’s budget, your layout, finishes, or tech infrastructure options may be constrained. And if you’re hoping for something highly branded or bespoke, you might need to pay extra or be prepared to compromise. 

However, it’s still more flexible than taking on a pre-fitted space, and far less involved than managing everything yourself. 

What’s the Process? 

Here’s a simple outline of how it usually works: 

1. You find a space that offers a landlord-funded fit out option, usually Cat A or pre-used Cat B. 

2. The landlord agrees a fit out allowance, such as £X per sq ft. 

3. Now you need a design and build expert to help, the landlord can suggest a partner from experience, or you can suggest your own design and build specialist to help with the process and advice from a 3rd party stance. 

4. The base works are delivered and funded by the landlord. 

5. You agree to any extras separately, which are contracted and paid for directly. 

6. You move in with your enhancements in place, without managing the process yourself. 

Rethinking Sustainability 

One of the strongest arguments for landlord-funded fit outs? They cut out unnecessary waste. This isn’t just about doing what’s green, it’s about doing what’s smart. 

Let’s take the typical Cat A+ route. The landlord fits out the space with new carpets, ceiling tiles, lighting, and teapoints to a generic standard. Then, a tenant comes in and rips out half of it to build their own layout. Perfectly good materials go to waste. Carbon impact goes up. Time and money go down the drain. 

With landlord-funded fit outs, the build starts from scratch, but in a strategic, coordinated way. There’s no speculative work to undo. No skip bins full of brand-new ceiling tiles. And no duplicated effort on MEP or cabling. 

That also means: 

• Better lifecycle planning for finishes and materials
• Joint decisions on sustainable suppliers or low-carbon options
• Reuse of existing infrastructure (where it makes sense)
• Lower embodied carbon from start to finish

This model makes a measurable difference for any landlord aiming to achieve BREEAM, NABERS, or internal ESG goals. 

HobHouse  

Take HobHouse, just off Trafalgar Square. Rather than inherit a finished Cat A+ space with finishes they might not want, the incoming tenant agreed with the landlord to fund the fit out from the outset. 

That meant the project began with the tenant’s brief, not someone else’s assumptions. Around 70% of the previous layout was reused, saving time, cost and a significant amount of waste. The landlord covered the essentials: partitioning, new lighting, flooring, and mechanical changes. The tenant then invested in enhancements like upgraded AV, acoustic treatments and bespoke branding features. 

It delivered a better space with lower impact and sped up delivery. That’s the benefit of building smart, not speculative. 

What’s Driving the Shift? 

It’s not just one trend pushing this model forward: it’s a combination of economic pressure, cultural change, and a more strategic approach to real estate from both sides. 

Leasing risk has become a central concern for landlords. Post-COVID, tenant demand has shrunk, become more selective, and moved toward “quality over quantity.” With vacant Cat A+ spaces lingering on the market and demand increasingly focused on ready-to-use, tailored workspaces, it no longer makes sense to invest in speculative finishes. 

On the tenant side, decision-making timelines are tighter. They want faster routes to occupancy, fewer project risks, and offices that reflect their brand from day one. They don’t want to start with a generic spec and retrofit culture back in. 

And of course, ESG targets are playing a major role. Landlords are under pressure to cut embodied carbon, report circular economy progress, and prove their space is fit for the future. Landlord-funded fit outs are an elegant solution, build once, build well, and build with someone who’s going to stay. 

Why Choose a Partner Like Two? 

Managing a landlord-funded fit out requires expertise on both sides. It means understanding what landlords are willing to fund, and what tenants really want. That’s where we come in. 

We’ve previously delivered projects under this model and know how to bridge the gap. We’ll work with you (and the landlord) to make sure your space feels like yours, without the usual headaches. Whether you want something clean and simple or bold and bespoke, we’re here to make it happen, on budget, on time, and with full transparency.