What is the difference between a, b,and c class buildings
A Class Properties
While there is no universally agreed upon definition, Class A properties tend to be newer, with high-quality finishes, amenities and accessibility. These properties can have their very own brand or lifestyle associated with them.
These properties are extremely desirable and primed for investment with the highest quality of construction, workmanship, materials and systems. Class A properties are also distinguished by the types of tenants they attract, prestigious, credit-worthy tenants and are ready to commit to long-term leases. These are frequently bought and sold by Investors, especially Real Estate Investment Trusts
An example of this is the TD Centre building in the Core of Downtown Halifax. Originally built in 1974, this building underwent significant renovations and was completed in 2014. Centrally located, this building features views of City Hall on one side and views of the Halifax Harbour on the other. With Photovoltaic cells laminated between sheets of glass to form a shade device, this building is incredibly eco-friendly, generating electricity while reducing glare on computer screens.
B Class properties
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
C Class properties
Class C properties are buildings that are older and typically do not have the features that are found in “A” and “B” properties. Usually the infrastructure are of an older vintage that have not been replaced or upgraded such as slow elevators, older sprinkler systems and floor plans that are not relevant to today’s efficient design.
For these reasons, Class C buildings offer lower rental rates and can be more difficult to lease. Many times these buildings are targeted for redevelopment. The curtain walls and the mechanical, electrical and safety and security systems of Class C buildings are generally dated, and the quality of finish is often dated. These types of properties are still in demand for those then tenants that seek short term leases or a lower rent structure in lieu of amenities that are offered in larger more modern buildings.