What do the building classes (e.g. class A, B, or C) mean?

In Leasing Property - Asked by Barbara N. - Nov 10, 2011
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Jay Z.
Phoenix, AZ

A very general answer is that A buildings are newer and have the most amenities ( best parking, exercise rooms, pretty bathrooms). C would be the older buildings with few "extras". The lease-rates are obviously highest for A.

Nov 11, 2011
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Curt G.
Texarkana, TX

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.

Nov 16, 2011
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Jacob H.
Saint Paul, MN

Curt G. gave a very good explanation. Just remember if you have a class A building in a B location it will end up getting class B rental rates.

Nov 21, 2011
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Sam M.
Eagle, ID

As defined in the Building Owners & Managers Association building class definitions.
Class A
Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence.
Class B
Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area. Building finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same price.
Class C
Buildings competing for tenants requiring functional space at rents below the average for the area.

Nov 22, 2011
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