What is the Different type of Office Building?

Not all office buildings are created equal – which is why a general classification system exists Most Office buildings are usually grouped into one of these 3 categories: Class A, Class B, or Class C. The building classification system varies significantly between markets. There is not an industry-wide standard on what determines a building classification.

These classifications are all relative and largely depend on a number of factors such as

• Building age
• Condition
• Amenities
• Location/accessibility
• Rental rates
• Maintenance
• Infrastructure

Through these points, we can classify that which is class A, Class B & C office properties.

Mainly there are 3 types of a commercial Office building-

1- What is Class A Office Building?

Class A office buildings are among the largest and highest quality office spaces in the market. Class A buildings are generally either new developments or properties that have had significant improvements and renovations. Class A office space will have the highest rental rates.

Buildings have high-quality standard finishes and state-of-the-art systems. Buildings are considered the best of the best in terms of construction and location. Class A office buildings will be the nicest and highest quality commercial office properties in the market. Offices in these buildings are often popular among high-profile, white-collar companies that are image-conscious.

2- What is Class B Office Building?

Class B office buildings are a little bit older than class A but still have good amenities. These class b office properties might have high-quality construction, but with a less desirable location. They’re generally nice, fully-functional buildings but don’t typically boast the same high-end fixtures, architecture, and striking lobbies as Class A buildings.

Generally, class B commercial properties command lower prices than class A office properties.

If you are a company that wants to office in a quality building but are unable or unwilling to pay high rental rates, then Class B offices may be a great alternative. Class B tenants include companies in the field of IT, creative services, call centers, BPO, and smaller professional services.

3- What is Class C Office Space?

Class C commercial office spaces are the poorest-quality structures on the market. Most Class C office buildings are at least 20 years older with local tenants who want space below the average market price. Generally, these buildings are located on the outskirts of the city, they lack modern functionality and technological advances. Rental rates in class C commercial buildings will be the lowest.

Class C buildings often undergo renovations or are converted into residential units. With some improvements and repairs, a Class C building can be upgraded to Class B.

if you are a commercial real estate investor interested in purchasing a redevelopment opportunity, then Class C buildings may be an option. If you are a start-up and looking for office space then this might be a good option for you until you grow as this allows you to allocate much of your financial resources towards growth.

Tenants of Class C properties include companies that do engineering, landscaping, security, construction, plumbing, electrical, service centers, etc.

Conclusion

When you begin the search for your office space, one of the first things you must decide is how much money you have to spend on real estate. This can impact the area in which your office is located, the age of the building, what kind of amenities the building offers, and, essentially, the class of building you can consider.