What Are the Differences in Class A, B & C Office Buildings?

There are a number of ways to categorize office buildings; these include by location, cost, flexibility of lease terms, amenities, and more. These are all important factors in choosing the right office space, but it can also be helpful to know whether the space you’re considering is in a Class A, Class B, or Class C office building.

What’s the difference between them? Classes A, B, and C are general categories that describe the building’s price range, quality of amenities, convenience of location, and overall desirability. Class A represents the best of the best; Class B offers a mix of aesthetics and lower prices; and Class C prioritizes budget over visual appeal or amenities.

There’s no legal definition of a Class A, B, or C building; in fact, these categories are typically relative to the area in which the buildings are located. For example, a Class A office building in NYC likely wouldn’t be comparable to a Class A building in a smaller city; in fact, that other Class A building would probably be rated a Class B office in NYC. It’s important to note that these categories apply to entire buildings, not to individual floors or office spaces. Even if a building had some office spaces that offered advantages over others, they would all still share the same A, B, or C rating.

What is Class A Office Space?

As the name indicates, Class A office spaces are the best of whichever city is being considered. According to the Building Owners and Managers Association (BOMA), a Class A building is one of the “most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high-quality standard finishes, state-of-the-art systems, exceptional accessibility and a definite market presence.” Office buildings in this category generally have all or most of these characteristics:

Located at the city’s most prestigious addresses
Recent construction or renovation
Cutting-edge business technology
Top-rated amenities, such as 24/7 security, on-site managerial staff, dedicated IT services, cafés, and more
Superior accessibility via public or personal transport
Indoor spaces with exceptional aesthetic appeal
Proximity to restaurants, shopping, entertainment, green spaces, etc.
Higher-than-average prices

As an example, Midtown Manhattan contains some of New York City’s most sought-after Class A office buildings. They offer plenty of advantages: premier amenities, excellent accessibility, and the prestige of having prime business addresses. Even though some of the Class A buildings in Midtown Manhattan are over a century old, they’ve been well maintained and regularly renovated to both preserve and update the best of what they have to offer.

Schedule an Office Tour Now

What is Class B Office Space?

A Class B office space tends to appeal to a much broader range of potential tenants. This type of building doesn’t offer the premium amenities or location of a Class A building, but it also costs less. The BOMA describes Class B buildings as “…competing for a wide range of users with rents in the average range for the area…building finishes are fair to good for the area and systems are adequate”. These buildings typically have all or most of the following characteristics:

Located in or near centers of commerce
Often constructed 10 to 20 years ago, without extensive renovations
Adequate business technology
Finishes and amenities that contribute to a comfortable work environment (such as elegant lobbies and on-site staff)
Fair to good accessibility
Proximity to restaurants, shopping, etc. (this may differ from city to city)
Average prices

Because many Class B buildings are in good locations, they may be converted to Class A buildings through renovations and the addition of top-shelf amenities.

What is Class C Office Space?

The main advantage of a Class C office space is its below-average price, which is often a key consideration for smaller businesses or startups. The trade-off is that Class C office buildings are less desirable where other factors are concerned. BOMA defines these buildings as “…competing for tenants requiring functional space at rents below the average for the area”. Class C buildings are usually characterized by the following:

Located away from primary centers of commerce
Constructed more than 20 years ago, often with few renovations since then
Limited or out-of-date business technology
Few or no amenities
Little to no dedicated managerial or maintenance staff
Poor accessibility
Limited proximity to restaurants, shopping, entertainment, green spaces, etc.
Below-average prices

Class C office buildings are rarely (if ever) converted to Class B or Class A buildings, usually because their location wouldn’t justify the expense of renovations.

FAQs for Office Space Classes in NYC

What are the advantages of investing in a high-class building?

Regardless of the area, a Class A office building represents the best the city has to offer. Renting space in one of these buildings means you’ll enjoy premium amenities that go above and beyond what’s strictly necessary for running a business. Many of those amenities can be extended to your clients and business associates as well, which is certain to make a favorable impression on them. Investing in a Class A building ensures superior accessibility from the rest of the city and beyond, which adds considerable value to any leased space. It’s also important to consider the location of the typical Class A office building – you’ll find it in the city’s prime business district, with an instantly recognizable address that’s sure to boost your company’s reputation. It sometimes happens that leasing office space in a Class A building results in networking opportunities, as high-caliber tenants may benefit from each other’s knowledge and business connections.

What are the drawbacks of investing in a C Class building?

Class C buildings essentially offer one advantage – a below-average price. This is possible because other potential benefits, such as a prime business address, upscale amenities, superior accessibility, etc. are extremely limited to nonexistent. A Class C office building is generally in need of renovation, resulting in drawbacks such as poor WiFi strength, slow or unreliable elevators, outdated equipment, or a lack of aesthetic appeal. These buildings will also be located some distance away from commercial centers, and are generally not very accessible. Not all of these factors will necessarily impact the individual performance of employees, but they will affect how the company is perceived among business associates, clients, and competitors.

TLDR for office building classes in NYC?

Class A Buildings

The address is something you’re proud to have on business cards, the amenities are top-notch, and the building and equipment are well maintained by dedicated staff. The price is above average for the area, but that’s because the advantages are too.

Class B Buildings

They don’t have a long list of amenities, but they still cover the basics (and sometimes a bit more). A Class B building’s condition and location may not be the best they could be, but the cost is feasible for a broader range of businesses.

Class C Buildings

These office buildings are the most affordable of the three categories, but also the least appealing apart from the low price. While Class C buildings are known for a lack of amenities, lackluster facilities, and poor accessibility, their price point is much more attainable for small businesses or startups.

Are you interested in leasing Class A office space in New York City? Contact us at 212-575-2700, or fill out our online form by clicking below: