The Difference Between Class A and Class B Buildings

 April 27, 2022

By  Guy Gray

Separating things into classes, stratification, is common practice. Take the airline industry, for example. Many airlines allow passengers to board based on different levels. Those in Class A go first, followed by those in Class B, and so on. But things aren’t so straightforward in certain industries.

Class A. Class B. Class C. What’s the difference? As a commercial real estate professional, you need to know. Let’s discuss their differences and what they mean for CRE pros.

What Are Class A Buildings?

Class A buildings are the best of the best, if you can’t tell already by the name. These buildings, according to Building Owners and Managers Association International (BOMA), feature “high-quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence.” As such, these buildings are priced higher on average than other classes. Common elements you’ll find in a Class A building include:

  • On-site parking garages
  • Up-to-date HVAC and maintenance systems
  • Free wiFi and other perks
  • Staffed lobbies, security buildings and management buildings
  • The presence of other ideal tenants in the building

What Are Class B Buildings?

As you might expect, Class B buildings are a tier below Class A, and the amenities and values you’ll find in these buildings reflect that. These facilities may have been Class A buildings in the past, but their features are a little out of date or the quality of their location has declined. Basically, Class B buildings are beyond a minimum, no-frills space, but they’re not quite at the same caliber of a Class A Building.

Other CRE Building Considerations

Buildings can also be Class C and have other important factors to consider. Class C buildings are usually minimum viable, so don’t expect things like premium finishes, parking garages or more than four stories. That being said, buildings in lower classes can be more affordable and therefore a good investment. The right commercial real estate software can help you organize and manage all data for existing and potential properties, so factor this into your building considerations as well.

If you’re interested in seeing how Quarem can help you organize, view and automate data for your properties and buildings, request a quote today.

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About the author 

Guy Gray

Guy Gray serves as Chief Operating Officer overseeing our technology and client services teams. He is responsible for guiding Quarem application development, networking and security, as well as new client implementations.

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