Finding the right office for your business can be a crucial part of success. Location, cost and amenities all contribute to the right space. Currently, the real estate market takes these factors into consideration and classifies office spaces into 3 categories: Class A, Class B and Class C. If you are searching for a new office for your business, it is important that you know the difference between these categories. To learn more about the characteristics of a Class A office space compared to a Class C office space and more, keep reading below.
What Is The Metropolitan Base?
The Building Owners and Managers Association uses two bases as a means of comparing and grouping different buildings on the market. The metropolitan base is for use within an office space market while the international base is for use primarily by investors among many metropolitan markets. Businesses with one office location will often look into metropolitan base buildings, while international organizations will be drawn to international base buildings.
What Is Class A Office Space?
Within the Metropolitan base there are three building classifications. A Class A office space is considered the most high-quality office available. It is often a new construction, within the last 5-7 years, with a prime location. In addition to the location, amenities and design make Class A spaces more desirable than Class B or C. However, they are often more costly to rent.
What Is Class B Office Space?
A Class B office space is considered average. It may be built within the past 10-20 years, and it is generally much smaller than a Class A office space. They offer standard amenities in a practical location. Lease rates are often designed to suit most companies, so they are likely much easier to afford than a Class A office space.
What Is Class C Office Space?
Class C is the lowest quality office space available. These buildings are typically in an undesirable location and may be very old constructions. Because they are often over 20 years old, Class C offices may require some significant renovations. These are only useful for businesses that only require the bare minimum for equipment lease or a low budget.
Are These Categories Consistent?
Although these characteristics listed above are generally true, in actuality office space classifications can vary greatly by location. What some may view as a Class B office space in New York City can be a Class A office space elsewhere. The inconsistency can make it tricky for many business owners to determine the best building. This is why it is important to focus on whether the space fits your needs, rather than the classification.
Although the characteristics for each category are not official grading, they can be extremely useful in helping to determine the best office space for you. Class A office space will always be your best option no matter where you are, while Class B spaces can be a budget-friendly alternative. The next time you are searching for the right office space, be sure to refer back to this post for a little guidance.
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