Office buildings often make a good choice for those trying to invest in commercial real estate. But since there are so many different types of these buildings, it is important for investors to know what they are buying first.
This is where building classes come in. These classes can provide information about the type of space, its quality, and what experiences they offer.
Class A buildings
Building Owners and Managers Association International discusses the definitions of different building classes. The matters that help determine a building’s class include things like amenities, rent, efficiency, and architectural features.
Class A buildings hold the most prestigious spot on the list. These appeal to tenants willing and able to pay more than those who seek out other, similar buildings in the area. They offer top-tier amenities like food services, fitness centers and state-of-the-art technology and equipment.
Class B buildings
Class B buildings are sufficient but not as indulgent as Class A buildings. They often have standard amenities, fixtures and features that get the job done but are not anything to write home about. Rent here is more competitive because it is priced similarly to other units in the area.
Class C buildings
Class C buildings are functional but do not have the quality it takes to climb to a higher category. These buildings lack conveniences and also the special touches of higher-class buildings. Often, the rents here are lower than the average rents.
Make sure to take a look at things like local public transportation systems and the type of the market in an area before making a purchase too, as these also play a big role in how well a property does.