“The Different Classes of Office Buildings for Rent” written by Mike Marko
Want to know which office building type yours belongs to?
Commercial buildings such as office buildings for rent are each classified differently. Their classification depends on several factors and their current market values.
If you want to make improvements on your office building, you have to make sure that it is well worth the value of your building.
With that said, you need to know what classification your office building falls into.
Today, we will talk about the different classes of office buildings for rent, and how you can make yours as profitable as it can be based on that classification.
Learning More About Office Buildings for Rent
Before making any improvements for your office building, you first have to determine its market value. Match your building’s quality with that of the changes to be done, such that any budget proposal made will be worth the best value.
The first step to determining your building’s worth is by knowing which category it belongs to. Today, we shall discuss the different types of office buildings for rent. But first, let us talk about what an office building is.
What is an Office Building?
An office building is one that is specifically made for white-collar workers. Often rented by multiple companies, this is where work relating to administration, clerical services, consulting, and other client services are done.
As businesses prefer buildings that can facilitate a lot of workers, ideally located, and well-structured, it is important for you to know which type of office building yours fall into. This can help you determine your accommodation capacity, as well as other aspects that you may or may not be able to offer them.
Different Types of Office Buildings
Office buildings are categorized according to different types to help business tenants narrow down their options. Moreover, the classification also determines the value of office buildings for rent.
Office buildings are classified into 3 different categories: Class A, Class B, and Class C. Before classification, several factors must first be evaluated. These include:
Office buildings and business suites of the highest qualities fall into class A. These are the ones with top-of-the-line fixtures, amenities, and systems.
Usually, newly constructed buildings belong to this group. You can easily distinguish a class A office building by its pleasing aesthetics, height (normally a skyscraper) or exterior cleanliness.
Class A office buildings for rent are quite costly because of their amenities, such as:
- Fast elevators,
- Unobtrusive turnstiles, and
- Fast and reliable Wi-Fi.
Class A buildings commonly cater to banking, real estate, and law firm business.
Class B buildings are those considered to be “average”. They can either be new or old structures that were set up to function as basic business spaces.
Normally, class B buildings do not offer high-quality fixtures, architectural details, and impressive lobbies. Although, they still provide functional facilities that are needed by either big or small companies.
The average-looking buildings with the following amenities belong in this category:
- Good, but not great technology,
- Functional heating and cooling systems,
- Attractive, but possibly outdated lobby,
- On-staff security personnel, but only after business hours, and
- On-site parking with limited available spaces.
You can easily identify class B buildings because they have lower degrees of visibility and amenities in big city complexes. A Class A building is sometimes downgraded to Class B after a few years.
Class C buildings are those of the lowest qualities. They are usually located at unideal areas for doing business. These buildings have more downgraded or outdated amenities. Although they offer less useful features and unpleasing aesthetics, they still get the attention of business tenants, especially for small startup business looking for budget-friendly spaces.
Usually, older buildings (around 20+ years) belong to class C. Some of these buildings are still occupied, even if they need significant repairs and refurbishing.
Keeping Your Office Buildings for Rent Profitable
The key to keeping commercial buildings profitable is to keep vacancies at a minimum. To do this, you need to constantly work to improve building systems, maintenance, repairs, and amenities.
To keep your office buildings for rent profitable while at the same time providing the best for your tenants, consider the following tips:
- Scheduling and performing checkups and preventive maintenance.
- Consider using energy efficient systems and upgrading building systems.
- Add improvements and upgrades to make tenants want to stay or sign long-term lease agreements.
- Spend money only on important and needed things. You can spend on luxuries when all the tenants’ needs are met.
- Evict unsuccessful businesses, or tenants who are giving you a hard time with monthly dues and behavior.
Final Thoughts on Different Classes of Office Buildings for Rent
Today, we talked about the different classes of office buildings for rent. Knowing the class of your property will help you determine its value in the market. It will also make easily to know what appropriate renovations and improvements to the property so that it is neither too flashy or extravagant.
Office buildings are categorized differently based on appearance, location, and amenities. The buildings with high-quality amenities, functions, and systems belong to class A. Those with average features and located in the suburbs belongs to class B. Lastly, old and worn-down yet still functionable buildings belong to class C.
Regardless of your property’s class, you can still make it profitable.
If you have more questions about the different classes of office buildings for rent, leave them in the comments section below.
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