If you’re looking to rent or lease a new office space, it’s time to really learn your ABC’s.
No, we’re not talking about going back to kindergarten to master the alphabet. We’re referring to the designation of office building classes. Knowing the differences between each one can have a huge impact on how well your ultimate choice will meet your needs.
Office Building Classes in a Nutshell
Before we get into the nitty gritty details, let’s start off by identifying the purpose of office building classes. Basically, they exist to help investors and tenants differentiate between properties available on the market. Instead of having to know every single detail about a potential space to see if it’s worth further investigation, an office building classification can speak volumes.
Before a class can be assigned, there are four critical factors to evaluate:
- Location – Where is this building situated within a particular market? Generally, a property that is in a great neighborhood with plenty of transportation options and surrounding resources will get assigned to a higher class.
- Building Age/Condition – It’s not surprising that new buildings, or ones that are well-kept, are at the top of the list and given a higher class. Older buildings can still make the grade, however, if they’ve been modernized and/or had recent renovations.
- Amenities – Of course, the building has office space for rent or lease, but what else does it offer? Popular amenities include on-site property management, banking and retail shops, restaurants, conference facilities, fitness centers, and more. The more amenities that are available in or around the building, the higher the class will be.
- Aesthetics – You’ve likely been told ‘you can’t judge a book by its cover’, but when it comes to office buildings, they are judged by what they look like! Modern, attractive buildings in pristine condition get the best grade here.
The ABC’s of Office Building Classification
Now that you know a little about what is factored into building evaluation, let’s take a look at the office building classes themselves. The Building Owners and Managers Association (BOMA) has identified 3 main classifications:
- Class A – If you’re looking for the best office space available in any given market, this is the class to aim for. Class A office buildings are strategically located, in pristine condition, and come loaded with included or nearby amenities. Of course, these spaces also come with higher lease rates but there is less turnover and you get what you pay for. Having your office in a Class A building provides many conveniences for your staff and tells your clients that you’re at the top of your industry.
- Class B – These buildings may not be as attractive as their Class A counterparts but they offer functional office space at an affordable rate. Buildings of this class are a great fit for businesses that have a lower budget and don’t necessarily need to be at the center of it all. Class B buildings typically have fewer amenities, are located just outside of the market’s hub, and offer at-market rates.
- Class C – At the bottom of the office building classes is Class C – usable office space for lease without all the frills and ‘extras’. Buildings in this class may be old, not as well-kept, or located farther away from the market’s business district. With the accompanying lower lease rates, however, these buildings can be attractive to start up businesses or companies simply needing temporary office space in a particular location.
How to Get the Office Space You Need
Knowing about office building classes can help you identify properties and buildings that pique your interest and could benefit your business. Make a list of your office space wants and needs and then contact us.
We are happy to arrange an in-person or virtual tour of any of our DFW area properties. Our ultimate goal is to match you up with the perfect real estate that will exceed your expectations!