Class C 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-C
1. Class C is given to the lowest quality building in the market area. These structures are typically 20 years old or more. They are in need of extensive renovations and repairs to both the exterior and interior of the property.
2. Class C buildings are generally located in below average areas where business has since moved away or on the outskirts of the main commerce center of a city. These buildings may not utilize professional property management services.
3. Class C buildings, due to its age, have degraded aesthetics and the interior needs heavy restoration before tenants can occupy the space. These renovations will cost more due to environmental standards for removing hazardous substances such as asbestos.
4. Class C buildings may not offer any technology at all. If it is present within these buildings, it is usually outdated and needs replacing.
5. Class C buildings have noticeably dated architecture and poorer infrastructure compared to Class A or Class B, and the landscaping and hardscape such as sidewalks and parking lot may require renovation.
6. Class C buildings typically have vacancy due to the lack of commerce in the area. However, they can easily attract tenants who have smaller businesses or individuals who desire below market rental rates. Class C buildings offer the most economical rent in the Triangle market area.
7. Investors who purchase Class C buildings may renovate the property back to a Class B status where they can raise rents and increasing their equity position. These properties are always solid investments in redevelopment areas.
The team at Craft Commercial welcomes the opportunity to share their market knowledge to help you receive the highest return on your investment. Our team also includes financial institutions, contractors, architects, engineers, and development/zoning experts to meet all of your needs. For a consultation simply email firstname.lastname@example.org.