Building Classifications; Class A, Class B, Class C

Building Classifications;  Class A, Class B, Class C

When considering office space, tenants will find that office and industrial buildings are generally classified as being either a Class A, Class B, or a Class C building. The difference between each of these classifications varies by market and class B and C buildings are generally classified relative to Class A buildings. Building classifications are used to differentiate buildings and help the reporting of market data in a manner that differentiates between building types. That said, there is no definitive formula for classifying a building, but in the general characteristics of each are as follows: 

Please see http://bryan-cole.com/MarketIntel.html for market information broken down by Class of Buildings.

The Classifications below are how we typical classify buildings in the local and regional market.

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.

Class B.
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.

The items above are general guidelines to building classifications.  There are no formal standards when classifying a building.  A Class A Building in Reading may not necessary be a Class A building in Philadelphia.  One of the most important things to consider about building classifications is that buildings should be viewed in context and relative to other buildings within the sub-market.

When considering a classification of an Office or Industrial Property keep the following items in mind.

Office Buildings
Visual Appeal
Location
Access (Major roadways, public transportation)
Data and IT Infrastructure
Elevator quantity and speed
Construction, Common Area Improvements
Parking
On-site or nearby amenities (dining, financial, hospitality, dry cleaning, etc.)
Ceiling Heights
Backup Power
HVAC Capacity
Floor load capacity
Security and life safety infrastructure
Lighting

Industrial Buildings
Visual Appeal
Location
Access (Major roadways, public transportation)
Infrastructure
Docks
Overhead Door Access
Column Spacing
Ceiling Heights
Amenities (Battery Chargers, Wash Bays, etc.)
Office Space
Trailer Parking – Car Parking
Water and Sewer Capacity
Construction, Common Area Improvements
Backup Power
HVAC Capacity
Floor load capacity
Security and life safety infrastructure
Lighting

For More Information please contact:

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities.  visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; representing buyer, tenant, and landlord representation throughout Pennsylvania.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s