The Difference between A, B, and C Class Buildings

Posted by AJ Rana on January 27th, 2020

The rise of offices across most of the states within the US means that there are now numerous classifications in the type of commercial and office buildings we have around us. These office buildings can be differentiated on the basis of amenities, structure, and other aspects. The differentiation helps commercial real estate brokers in giving a wide variety of offers to clients based on what they can and should expect from the different buildings around them. The rates vary from building to building and the location they are in.

All office buildings in states across the United States are differentiated into buildings of Class A, Class B and Class C. These classifications do not have a said formula, but help in grouping the buildings into different groups with similarities.

Class A

This class includes all the newest and highest quality buildings within the market. These buildings have unique characteristics and host the best office space around town. These buildings usually have the best quality infrastructure and come with amenities that are better than those provided by other buildings. The construction looks good, and is a replication of all the beauty hosted by these buildings.

Because of the good infrastructure and nice shape of the buildings, these buildings happen to have the highest rates and the best tenants in town. They only attract tenants that can afford the expenses of being inside a lavish structure with amenities that are par excellence.

Class B

As suggested by the alphabetical order of these buildings, Class B buildings are a notch down the Class A buildings. These buildings happen to be generally older than the Class A buildings, but still happen to have good management and a good quality of tenants within the space.

Many investors and commercial tenants often target these Class B buildings; because they can soon be returned back to their Class A glory, through timely renovation and proper implementation of area improvements. Class B buildings are generally well maintained, and have good quality staff looking after affairs within the structure. The structure isn’t that old as well, and still looks aesthetic and fresh.

Class C  

The lowest classification of office space comes in Class C buildings. These buildings happen to be a bit older and are located in lesser desirable areas. These buildings also happen to need a lot of extensive renovation. These buildings lack proper and timely renovation, which is why they are the least desirable. The structure is poorly maintained, and has no aesthetical appeal to it. The technology within the structure is outdated, and does not attract investors in anyway whatsoever. These buildings often take the longest time for leasing.

The information mentioned above is a general peak into the different types of classifications for buildings. These classifications can further be studied in detail with the help of commercial real estate brokers to know additional information.