Different Classes of Office Space

Classes of Space

Commercial real estate is categorized into Classes (from Class A to Class C). These classes or categories are used in the industry to denote the quality and desirability of a building.

Class A space

Class A properties are usually in a prime location and are newly developed. Sometimes class A space can be in an older but highly sought after building, in which case the interiors have been recently updated to a high standard. Class A buildings will have the highest rental rates.

Class A spaces meet high quality standards, such as sleek design, green and energy efficient elements, state-of-the-art facilities, stylish furniture and excellent accessibility. Many large international companies and high profile businesses occupy Class A buildings to boost their image. They are willing to pay a premium for this space to be in a well recognized top-tier location. Class A buildings also typically have on site management, on site maintenance, 24/7 security and other amenities and services.

Class B space

A Class B property is typically available in less exclusive areas or in older buildings that have not been renovated. While Class B spaces do not offer the amenities and prestige of Class A, they are not considered sub-standard. Many Class B buildings were once Class A properties. The facilities and overall value are usually above average and satisfactory for standard business requirements.

Class B space is much more affordable for small or medium size businesses. Class B space appeals to a wide range of companies. This space is ideal for any business that values cost saving over image.

Class C space

Class C is functional, but is generally not updated or maintained to the level of Class B space. The level of amenities and services provided by the landlord tend to be lower with Class C buildings. The property is usually located outside of a major business district or in a suburban area, Class C spaces will have some of the lowest rental rates in the market.

Class C buildings, despite a generally lower level of maintenance, usually maintain steady occupancy.

If you would like more information about this topic, or if you are interested in leasing small office space, email a SwiftLease agent at [email protected]

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