The Different Classes of Commercial Real Estate

When you are purchasing or leasing commercial office space, criteria to consider includes building location, leasing flexibility, and property classification. Finding the office space of the appropriate classification can help companies and businesses to work efficiently, connect with clients easily, and develop corporate identity. If you are looking for new office space, a commercial real estate broker can help you to understand the different classes of space and negotiate a beneficial lease agreement.

• Class A Office Space: Of the three different classes of office space, Class A properties are generally those of the highest quality in design, functionality and amenities. Class A properties are also well-located with access to clients, resources, and roadways. While Class A buildings tend to boast better construction and infrastructure, they can command high rent rates and stricter leasing negotiations for prospective tenants.
• Class B Office Space: Like Class A properties, Class B buildings are typically well-built spaces in a desirable location but are over 10 years old. Because Class B properties are often targeted by investors for renovation into Class A properties, leasing in a Class B building could be a strategic and beneficial move for some companies.
• Class C Office Space: A Class C commercial property is usually over 25 years old. It may also be in a less desirable location with outdated technology or architecture. While Class C buildings tend to require extensive renovation, they usually offer the lowest rental rates and are often targeted for eventual redevelopment.

For more information about renting commercial office space, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.

Tenant Representation and Real Estate Advocacy: Resources for Further Reading

With tenants and landlords both negotiating for a better deal, navigating the commercial real estate waters can be a challenge. If you are a tenant in search of new office space, consider working with a commercial real estate broker to help you secure a space that works for you and on your terms. With an in-depth knowledge of the Denver market, Tom Pappas represents and advocates for tenants exclusively to help them make sound real estate decisions. For more information about commercial real estate, contact Tom and read through some of the resources below.

• Selecting an office space involves more than just measurements and having adequate meeting space. In addition to researching the location around the building, inquire about a building’s amenities, accessibility, and tenants. Learning more about your office space options can help you to avoid sharing space with a competitor and to create a comfortable space for employees.
• When renting commercial office space, tenants will find that the commercial lease agreement they sign dictates how much they pay and how much protection they have against the landlord. To help you interpret the terms and conditions of your commercial lease, have a commercial real estate broker review the lease and read more about commercial lease agreements.
• If you are a commercial real estate professional or someone looking for office space, refer to the resources provided by BOMA International. Setting the standards for commercial real estate assessment, the Building Owners and Managers Association also provides additional articles and statistics to help you make an informed real estate decision.

For more information about commercial real estate, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.

Real Time Real Estate: CoStarGo App

If you are in the commercial real estate industry, you can now take the office into the field using the CoStarGo app for the iPad. With this app, brokers and agents can access CoStar’s entire database and find updated, accurate information about properties, available space, and transaction histories. By allowing commercial real estate professionals to connect virtually to one another and to properties, the app allows brokers to make the most use of their and their clients’ time.

The next time you are on a site visit with Mr. Pappas, for example, he can provide you with detailed reporting about a property’s tenants, leasing history, and surrounding location. If you find a building you like, he can access CoStar’s database to immediately identify similar properties and qualities, helping you to efficiently and strategically find the space that is right for you.

For more information about commercial real estate, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.

Why Hire a Commercial Real Estate Broker?

Whether you are seeking new office space or considering the renewal of your current lease, as a tenant, careful analysis of your needs and real estate negotiations can help you to secure an appropriate and fitting commercial office space. To ensure that negotiations and the final outcomes result in your favor, consider working with a commercial real estate broker who specializes in tenant representation. A tenant broker can represent your best interests to help you find the space with the best location, functionality and value. 

• A Tenant’s Best Interest: While a commercial real estate broker who represents both tenants and landlords can run into conflicting interests, a tenant representative can focus solely on your best interests and goals. At Studley, Tom Pappas and his team represent tenants only, using their knowledge of the Denver market to negotiate the best terms and lease agreements for their clients.
• Experience with Landlords: Without broker representation, tenants themselves will have to deal directly with landlords, who are likely well-versed in negotiating complicated lease terms for their own benefit. A commercial tenant broker, though, will have experience with and an understanding of working with landlords. Using his or her knowledge of landlord motivations and tactics, your real estate broker can help you to detect any deceptive or unfair wording and actions in your negotiations. 
• Evaluation of Office Space: Tenant brokers are experienced in evaluating office space, including its location, amenities and unseen qualities, and can help you to accurately gauge the value of a commercial office space. Instead of benefitting from loyalty to one landlord, a commercial real estate representative will be up-to-date on market trends and surrounding spaces, providing his or her clients with a range of suitable options and alternative spaces.
• Lease Review and Analysis: While many commercial real estate clients will have legal counsel review lease agreements, a tenant broker can bring particular knowledge of the industry to bear on negotiations. Your broker will not only meticulously examine the content of your commercial lease agreement but can also advocate on your behalf for better conditions and protection. 

For more information about tenant representation, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.