Commercial Real Estate Book - Leasing Book Preview

category as well. While Class B buildings can have their own amenities, there won’t be as many and they won’t be as high of quality.

Class B Offices

This is your average everyday working office. The landlord competes for a wide range of tenants in a variety of industries. The building does not compete with Class A buildings but can often stand out in the area. The area around it is adequate and so are the amenities. There may not be the number of amenities as in Class A buildings, but the lobby and common areas are pretty upscale. Some finishes may be outdated but these offices can have a few high-quality tenant improvements done to them. Maintenance and janitorial services are pretty good. The HVAC systems are usually functional but not top of the line. There is usually on-site parking, though it’s not as convenient as Class A.

Class C Offices

These are mainly for tenants in a pinch, either time-wise or financially. They are in a shorter lease, for less than the market average, and in a lower-end area. These buildings are often more than 20 years old and pretty run down. The technology in the building is often outdated. There’s usually no tenant parking and each office has its own older HVAC unit, inside one central unit for each floor. Upkeep and maintenance is lower quality. Also, if a tenant wants to maximize on the low price but add in fancier improvements inside, that’s often not possible and the building can’t handle it.

URBAN BUILDINGS OR CENTRAL BUSINESS DISTRICT

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