What is a Class B Building?

What is a Class B Building?

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.

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