There is a wide variety of office building types to choose from in today’s real estate industry. A broad array of prices, special building features, and additional options exist to accommodate every type of customer and/or industry. Due to this sizeable range of options, there is a general classification of office buildings that exist in each market in order to help establish some consistency in the office real estate industry.
Standards may vary according to each specific market, but there are typically three different building classifications which provide clarity in terms of what specific type of office space someone might be looking for. Additionally, these classifications make the office space real estate search process much more efficient. We have prepared a brief summary of the 3 different classes of buildings below in order to help you start your search.
Class A Buildings
Buildings that are considered “Class A” are the newest and highest quality buildings on the market. They normally have amenity packages such as gym, cafeteria, etc., and also offer high-quality standards in buildings such as elevators, lobby, etc. The location and accessibility are usually great for Class A buildings. In terms of the actual building, they are considered to have a quality infrastructure along with solid construction. Class A buildings also tend to have high-quality tenants and management. As you might have already guessed, the rent for Class A buildings is the highest out of all three classifications.
Class B Buildings
These buildings are typically a little more dated than buildings you would find in Class A. That being said, Class B buildings are still of high quality. Their systems, management, and tenants are good in general, but not quite on the same level as that of a Class A building. Rent for these is lower than Class A buildings, which means that you can find great value in the Class B building market. Many Class B buildings are highly sought by investors because they tend to have a good location along with the opportunity to be upgraded to Class A after renovation.
Class C Buildings
Class C buildings are the oldest buildings of the group. Their locations are typically not very good. Additionally, the infrastructures, amenities, and technology of the buildings are likely to be outdated. For these reasons, rent for Class C buildings tends to be the lowest out of all three building classifications.
As stated above, the classification of buildings is a general basis for evaluating different office spaces. The standard by which each classification is sorted is subjective to their respective market. You might find that a building considered to be Class C has features that work better for your business rather than a Class A building. The opposite is also a possibility. That is why it is paramount to work with a real estate agency that possesses extensive knowledge and experience.
At Rakow Group, we aim to assist our clients during every step of their real estate experience. Call us now at (914) 758-0220 for any of your office space real estate needs and receive the highest quality professional assistance in the market.