"Class A Office Building" - Not always

This is a term that is liberaly used when describing the class of an office building. Most of the time owners and or their agents just don't understand how office buildings are rated. They also want to portray their properties in the best light possible. However, many of the properties that are described as Class A or really more like B or C.

The class of an office building refers to its ranking in the market, reflected in the level of rental or sales price per square foot it can command. The four classes of office space are:

1. Class A - This class of office building has excellent location and access. It attracts high-quality tenants. It is of superior construction, materials, and finish, and is relatively new or is competitive with new buildings. It provides onsite amenities and offers professional on-site management
2. Class B - This class of office spce has good location and access. It attracts better tenants. It is of good quality construction and may compete with buildings at the lower end of the Class A category.
3. Class C -This class of office space is usually older and lacks some of the features that newer buildings offer. It may also have been affected by economic obsolescence, i.e. - the surrounding area no longer commands top rents). It might also suffer from some physical deterioration.
4. Class D - This class of office space is older, suffering from functional obsolesence and physical deterioration, probably in need of renovation, and likely to be suffering economic obsolesence as well.

Office buildings go through a lifecycle where they devolve over years from Class A to Class B to Class C buildings. If their neighborhood sustains commercial viability, a building may be maintained or renovated and retenanted to sustain Class B or Class C status for many years. If not, they tend to become Class D buildings and might eventually sit vacant or be demolished for re-development.