When looking at commercial real estate listings, you may notice that they’re grouped into one of three classes: A, B, and C. While it is more of an art than a science, these classes give you an idea of the quality, aesthetics, and versatility of these spaces.
The definitions of each class vary depending on the market, current trends, the opinion of the listing broker, and – most importantly of all – the property itself. Today we’re going to take a look at these classes to see what sets them apart.
You’ll know a Class A building when you see one. Class A spaces are typically newer with high-quality finishes, state-of-the-art systems, aesthetically appealing architecture, and other top-tier features. Most – but not all – Class A buildings are high-rises with lobbies, often staffed by an attendant. They’re usually in desirable neighborhoods or city centers.
Class A office space is ideal for any business where a professional, world-class impression matters: banks, law firms, ad agencies, tech companies, and similar operations. This upper echelon clientele also commands an upper echelon price, so be prepared to pay for the privilege.
Class B spaces are a step down from Class A, but not too far. They’re relatively new, well-maintained, and likely managed by competent people. You won’t find gorgeous architectural details or stunning lobbies, but you will find a functional, adequate office space. They’re usually low-rises or close to the suburbs.
Class B spaces often attract smaller businesses or outsourced operations due to their balance of comfort, price, and functionality. Some Class B spaces are also former Class A spaces that have fallen from glory, making them a great option for investors.
Class C spaces are almost always older buildings that may or may not require rehabilitation. They’re often in less-than-desirable neighborhoods, plain or outright unattractive, and may not lease for long periods of time.
So what’s the appeal? One word: cost. Class C spaces are by far the cheapest to buy or rent, ideal for personal offices or no-frills businesses that just need a space to work. Many are also excellent redevelopment opportunities.
Looking for commercial real estate for your office, business, or retail store in the Triangle? Look no further than Insight Property Group! Our expert agents will help you navigate the turbulent real estate markets of Raleigh, Durham, Cary, and beyond. Contact us today to get started!