These buildings are a grade below Class A. Generally, they are slightly older buildings with good management and quality tenants. It is not uncommon for value-added investors to target these buildings with the intention of renovating them back into Class A buildings. Class B buildings are well maintained overall and quite functional. Class B office buildings commonly have an acceptable curtain wall finish, adequate (but not state of the art) mechanical, electrical and safety and security systems, and a mid-quality level of interior finish. Class B buildings compete for a wide range of users at average rental rates for their market area.
Criteria
- A grade below Class A.
- Slightly older buildings– Good management, quality tenants.
- Building finishes– Fair to good.
- Good quality systems – Not at Class A level.
- Can be targeted by investors planning renovations to restore them to Class A.
- Well maintained – Functional.
- Average rental rates.
