When you walk into a professional building, you may not realize just how unique the space is. The world of real estate has meticulously divided these buildings into distinct classes. Understanding the differences between Class A, B and C office spaces is the first step towards finding the right building for your business.
After all, you wouldn’t buy a house without knowing what you want. Looking at the surrounding properties, design, budget, age and makeup of the location are important to a successful buy. The same can be said for buying commercial real estate.Here are the differences between Class A, B and C office space:
Properties are categorized mainly by age, location and maintenance.Class A buildings are a buyer’s dream. They are located in prime areas, well maintained, high quality and the newest in the market. These properties are in high demand and attract a variety of eligible tenants. If you’re looking to buy a Class A building, you should have the funding to support the rent—as they can be expensive.
While Class B buildings are a step down from Class A spaces, they are still considered to be great investments.They are a few years older but are well maintained. If the location is right, buyers can restore these buildings to their fullest potential. Class B buildings are easier buys. They are lower in rent and can be polished to perfection.
Even though Class C properties are the lowest on the list, they can still be valuable.
These buildings are old, located in undesirable areas, in need of renovation and have outdated technology. While the rent on these buildings is low, they are often considered to be costly and time-consuming investments. Class C properties are on the market for the longest but despite their lack of appeal, they can be turned into beautiful establishments.
Take into consideration, however, that there are Class A properties in undesirable locations along with Class C properties in more desirable areas. The office space alphabet is not a stringent guideline, but it does give a prospective buyer an understanding of what to expect.
When looking at potential prosperities, it is crucial to think ahead. Remember to consider the cost of rent, the location, the investment, maintenance and any other factors that may effect your decision. Do your research and be positive. You never know what you may find.