Define the different building classes A - B - C?

In Selling Property - Asked by Judie D. - Dec 6, 2011
Report Abuse
Answer this Question

Answer(s)

larry t.
Owner/Investor
Graham, WA

The Square Feet Commercial Real Estate Blog describes the classes of buildings very well....
Class A. These buildings represent the highest quality buildings in their market. They are generally the best looking buildings with the best construction, and possess high quality building infrastructure. Class A buildings also are well-located, have good access, and are professionally managed. As a result of this, they attract the highest quality tenants and also command the highest rents.
Class B. This is the next notch down. Class B buildings are generally a little older, but still have good quality management and tenants. Often times, value-added investors target these buildings as investments since well-located Class B buildings can be returned to their Class A glory through renovation such as facade and common area improvements. Class B buildings should generally not be functionally obsolete and should be well maintained.
Class C. The lowest classification of office building and space is Class C. These are older buildings (usually more than 20), and are located in less desirable areas and are in need of extensive renovation. Architecturally, these buildings are the least desirable and building infrastructure and technology is out-dated. As a result, Class C buildings have the lowest rental rates, take the longest time to lease, and are often targeted as re-development opportunities.

Dec 6, 2011
Report Abuse
Charles C. C.
Researcher
Medford, OR

Kudos to Larry T. for the excellent answer. A little additon to that is watch the cap rates ( the ratio of income to value) that usually concurs with the answer Larry gave. A represents the lowest, B higher and C higher than that.

Dec 22, 2011
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question