There are many different types of office buildings, which is why there’s a classification system in place to categorize each building. This classification includes class A, class B, and class C. If you meet with a Denver real estate expert about finding an office space for your business or investing in an office building, he will use this rating to determine a fair price for the property. How are each of the classes defined? Here’s what you need to know:
Class A is considered the best of all three ratings. These buildings typically have high-end amenities, spacious lobbies, and on-site parking. To be considered a class A building, it must be located in a prime location that is highly sought after by tenants. These buildings are usually larger than other properties on the market and have been well maintained by previous owners. Most fancy high-rise buildings you see in downtown districts are classified as class A buildings. Many people want to rent or own class A buildings, but it’s important to keep price in mind. Because class A is considered to be the best of the best, you will have to spend more to get inside one of these buildings. Big name firms in the banking or legal industries tend to gravitate towards class A buildings.
If a building is classified as a class B, it’s considered to be average. You should expect a fairly nice building that is attractive and welcoming, but it won’t have the same on-site amenities that a class A building does. It also won’t be located in the a prime location. Many class B buildings are found in suburbs, which could be ideal for some businesses. These buildings are cheaper to rent or own than class A, and usually go for the average market rate. It’s possible that a building is initially classified as a class A building, but then is later downgraded to a class B after about a decade or so has passed. This happens when the building’s age causes some deterioration that affects its overall appearance.
Class C buildings are older buildings that have not been renovated. If you rent or buy a class C building, you may need to invest in it in order to repair major issues or make it more attractive to employees or customers. These buildings are much cheaper than class A or B buildings, so they tend to draw in smaller companies that cannot afford to rent out a nicer building. If you invest in a class C building, you could upgrade its rating to a class B, but not to a class A, which is reserved for newer construction only. Learn more about building class definitions
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