Do I Need Class A, B, or C Office Space? | Real Estate > Commercial & Residential Property from AllBusiness.com
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Do I Need Class A, B, or C Office Space?

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The classification of office buildings as either A, B or C usually relates to design and functionality, the year of construction and the building’s location. Classification differs slightly from city to city, but generally follows a standard pattern, which is described below:

  • Class A Buildings. These buildings sport modern construction with state-of-the-art functionality and architectural design, infrastructure, life safety and mechanical systems. Class A buildings are also located in the most sought-after areas. Not surprisingly, Class A buildings typically command the highest rents, include the best amenities and, consequently, offer the least attractive concession packages for tenants.
  • Class B Buildings. These buildings are usually highly functional, well-located facilities more than 10 years old. Class B buildings generally feature a less desirable design and infrastructure than Class A buildings, although a well-located B building can be renovated and reclassified as Class A.
  • Class C Buildings. Generally, Class C buildings are more than 25 years old and have not been renovated. C buildings are functionally and architecturally obsolete and are located in less desirable areas. They command the lowest rents and attract the least credit-worthy occupants. It is not likely that a C building could be rehabilitated to A status, regardless of its location.

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