C-Loans Commercial Mortgage Lender Databank

117538 Resource 78777 78860 78860 1141318925735 1142028955955 Controlled Definition of Class A, B, and C Office Buildings

The Distinction Between Classes of Office Space is Subjective

Office buildings are classified according to a combination of location and physical characteristics.  Class B and Class C buildings are always defined in reference to the qualities of Class A buildings. There is no formula by which buildings can be placed into classes; judgment is always involved. The Urban Land Institute, a noted authority on commercial land uses, says the following about these classifications in its Office Development Handbook: Class A office space can be characterized as buildings that have excellent location and access, attract high quality tenants, and are managed professionally. Building materials are high quality and rents are competitive with other new buildings. In practical terms, the office buildings that you see in the heart of the financial district with lots of brass and glass fixtures and huge, expensive lobbies are examples of Class A office buildings.  Class A office buildings are usually steel-framed and tall.  They are often occupied by banks, high-priced law firms, investment banking companies, and other high-profile companies with a need to provide the trappings of financial success.Class B buildings have good (versus excellent) locations, management, and construction, and tenant standards are high. Buildings should have very little functional obsolescence and deterioration.In practical terms, Class B buildings are usually newer, wood-framed buildings or older, former Class A buildings.  Class B office buildings are often found in the suburbs or the less-pricey areas of major Central Business Districts (CBS's).  Wood-framed Class B office buildings are usually three stories or less.Class C buildings are typically 15 to 25 years old but are maintaining steady occupancy. A fair number of the Class C office spaces in the inventory are not truly office buildings but rather walk-up office spaces above retail or service businesses.In a normal market, Class A rents are much higher than Class B, which are above Class C. This makes sense because Class A buildings offer higher quality to the tenants and cost more to provide.You can apply to hundreds of office building lenders using <a href="http://www.c-loans.com/onlineapp">C-Loans.com</a>. 9 application/xml false commercial financing commercial loan commercial mortgage commercial real estate loan office building financing office building loan office building mortgage C-Loans Commercial Mortgage Lender Databank Apply to Hundreds of Office Building Lenders in Just Four Minutes http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 6.0; Windows NT 5.1; SV1; .NET CLR 1.1.4322) 71.50.245.172 71.50.245.172 GBlackburne false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web