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 It may also be in a less desirable location with outdated technology or architecture.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.