By Seth Lane, Director
If you have spent some time looking for office space to lease or purchase you have certainly come across properties being advertised as Class A, Class B, or Class C office space. While this nomenclature is common, many people do know what such a classification really means. There is no industry standard or universally accepted set of measures used to classify an office property. Often, the classification is the opinion of the property owner or listing broker. While general parameters exist, classifying properties is still a subjective process based on market, property owner, and even the property's listing broker. So how do you really know what property class you are dealing with? Here are a few rules of thumb to help you understand the classes of office properties.
Class A office space is generally considered to be NEW or in Like New condition. The property is well constructed using high-quality materials. The interior of the space should have a contemporary look and feel as well as modern conveniences (necessities really) such as easy access to high-speed communications. A Class A classification can also be predicated on location. Between condition of the building and the property location, Class A space typically commands the highest rental rates in the market.
Class B space should be in good condition with little need for major renovations or updates. When compared to Class A properties, Class B properties are typically a bit older, may have less amenities or upgrades, or may be in a location with a slightly lower demand. Class B space is easily rented but commands a lower rental rate than its Class A counterpart.
Class C space is typically characterized as being in need of significant interior or exterior updating or as having some sort of functional obsolescence. This may include a site plan configuration that is no longer in demand or having interior infrastructure that does not support modern technology. Like the other classifications, a poor or undesirable location may cause a property to be labeled as Class C space.
As you look for office space to rent or purchase, make you own determination as to the quality of the space being shown. Advertisements may not always provide an accurate portrayal of what is actually being offered.
If you are looking for Gainesville Office Space and would like some professional guidance, please give us a call. We specialize in Gainesville Commercial Real Estate and provide professional buyer's representation and tenant representation services.