Not all office buildings are created equal, and “Class A” means more than having a newer building or a nicer lobby.
Office building classifications generally reflect a combination of factors including location, construction quality, building systems, amenities, management, and how a property compares with other office buildings in its market.
What Makes an Office Building Class A?
Location Matters
Class A office buildings are often located in desirable business districts or submarkets with strong accessibility, nearby amenities, and access to major transportation routes.
Location is important because the same building characteristics can be perceived differently depending on the market in which a property is located.
Quality of Construction and Building Systems
Construction quality, building materials, architectural design, mechanical systems, technology infrastructure, and the overall condition of a property can all contribute to its classification.
Newer construction can be a factor, but age alone does not determine whether an office building is Class A. An older property that has been substantially renovated may compete with newer Class A buildings, depending on the market.
Amenities and Tenant Experience
Amenities can also distinguish higher-quality office properties.
Depending on the building and market, these may include:
- Structured or convenient parking
- Security
- Fitness facilities
- Conference and meeting spaces
- Upgraded common areas
- Food and beverage options
- Professional property management
- Modern tenant services and technology
The importance of individual amenities can vary depending on what tenants in a particular market value.
Management and Property Operations
The way a property is maintained and operated can also affect how it is perceived in the market.
Consistent maintenance, responsive property management, building improvements, and attention to common areas can contribute to the overall tenant experience and competitiveness of an office property.
Market Perception
Perhaps most importantly, building class is relative to the market.
A Class A office building in one market may have different characteristics from a Class A building in another. Local inventory, tenant expectations, location, rents, building quality, and competing properties all influence how a building is positioned within its market.
Why Does Office Building Class Matter?
Building classification can affect how an office property is positioned in the market and how tenants evaluate potential space.
For tenants, understanding building class can help when comparing office options based on workplace image, amenities, functionality, location, and budget.
For owners, classification can provide context for how a property is positioned relative to competing buildings and may inform leasing strategy, capital improvements, and investment considerations.
Class A does not automatically mean that a building is the right fit for every tenant. A business may prioritize location, price, parking, layout, or other factors over classification.
Class A Is About More Than Appearance
A Class A office building is not simply a building with an impressive lobby or modern finishes.
Its classification reflects how the property performs and competes within its particular market, including its location, physical characteristics, amenities, management, and overall appeal to tenants.
Understanding these factors can help tenants and owners evaluate office properties based on more than square footage and asking rent.
Ask a Broker
With experience spanning brokerage, development, and property management, Meghan Reed works with clients evaluating office properties and commercial real estate opportunities.
Whether you’re considering office space, evaluating a property, or planning improvements, understanding how a building compares with competing properties can provide useful context.
Have questions about office leasing, property management, or development? Contact Meghan to learn more.
