Class B Office Buildings
Office buildings are classified into 3 categories: Class A, Class B, and Class C. These distinctions are based on age, location, amenities, aesthetics, and general infrastructure. A building’s overall quality, price, and average tenant rental rate is determined by its class based on the market area.
7 Things That Make a Building Class-B
1. Class B is given to medium quality buildings in the market area. They are the most common office space in our market. These structures are usually over 10 years of age and may have once been Class A, but were downgraded due to the visible signs of deterioration caused by age.
2. Class B buildings are located in good commercial areas and may be in the most sought after locations like Class A. Class B buildings are usually maintained by professional property management organizations.
3. Class B buildings are typically designed for function over form, so they have limited or no additional modern amenities found in Class A, but the space will adequately serve the needs of its tenants.
4. Class B buildings are well maintained with average aesthetics. The technology present is usually older, but not completely outdated.
5. Class B buildings are rarely above 4 stories tall, so the entry space and common area will generally not have vaulted ceilings. In addition to aging and deterioration, the exterior’s architecture may be outdated compared to more modern designs.
6. Class B will attract quality tenants who are searching for locations that charge average market prices.
7. Class B is the most sought after property for investors. Depending on the market area, they will purchase the building at the Class B rate with the intention of renovating the space to upgrade their investment to Class A. They will then be able to charge their tenants the Class A rental rates.
There are many investment advantages to Class B office buildings. To receive a list of advantages and low-cost financing options contact firstname.lastname@example.org. Your information is held in strict confidence.