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Types of Commercial Office Buildings

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Today's Tenant Rep Tuesday Tip topic: Types of Commercial Office Buildings

Commercial Office Buildings are broken down into three main building classifications: Class A, Class B, and Class C.

The building classification can be a simple indication of the building’s amenities, architecture/appearance, geographic location, and the cost to rent. Keep in mind, this is strictly concerning the building - the classification has a minimal effect on the lease space itself.

A few of the determining factors that sort what class a building falls into are: the age of the building, location, curb appeal, the overall building infrastructure, and construction awards (such as LEED certification).

Class A: Class A Office Space / Class A Building | This is the highest classification. These buildings are some of the newest products of their kind in the market. They generally have the greatest curb appeal and possess high-quality building infrastructure. Class A buildings are also located in supurb corridors, with access to local amenities. These buildings tend to offer the highest rents and rental rates.

Class B: Class B Office Space / Class B Building | This is your common middle ground as a tenant, it may not have all the aesthetic amenities of a Class A building for example, but it could still be geographically located in an area with close proximity to freeways or local attractions. 

Class C: Class C Office Space / Class C Building | This is the lowest classification - but it certainly does not mean worst. These are older buildings and are located in less desirable areas. As a result, Class C buildings have the lowest rental rates.

This building classification is just a general guideline, no formal standard exists for classifying a building. Buildings must be viewed in the context of their sub-market; i.e., a Class A building in one geographic market may not be a Class A building in another. These classifications can also change from time to time as market trends occur or as Landlords / Building owners make improvements and renovations.

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