Office buildings are often categorized by classification. This can be confusing for the average business owner looking for office space to start their business, or expand or upgrade their office facilities.
There is no exact science or scoring when differentiating when it comes to office space however, the most basic and widely used system is as follows:
- Class A buildings are generally those in an excellent location with geat access, good design, made of high end materials, and incorporate state of the art building systems.They attract high quality tenants with rents that are generally competitive with other newly developed buidlings.
- Class B buildings are in good locations with easy access. These bildings have good management and construction with relevant building systems, and some minor deterioration. Class B market rates are not as high as Class A office rents.
- Class C buildings are generally older with aging or even antiquated operational systems. The rents for Class C office space are among the lowest in the competitive office market. These buildings can be as many as 50 years old and at times as young as 15.
A tenant should ask their broker all the relevant questions while touring potential office sites.