Building Classifications – Class “A”, “B”, and “C”

When considering office space, tenants will find that office and industrial buildings are generally classified as being either a Class A, Class B, or a Class C building. The difference between each of these classifications varies by market and class B and C buildings are generally classified relative to Class A buildings. Building classifications are used to differentiate buildings and help the reporting of market data in a manner that differentiates between building types. That said, there is no definitive formula for classifying a building, but in the general characteristics of each are as follows:


The Classifications below are how we typical classify buildings in the local and regional market.

Class A.  These buildings represent the highest quality buildings in their market. They are generally the best looking buildings with the best construction, and possess high quality building infrastructure. Class A buildings also are well-located, have good access, and are professionally managed.

Class B. Class B buildings are generally a little older, but still have good quality management and tenants. Often times, value-added investor’s target these buildings as investments since well-located Class B buildings can be returned to their Class A glory through renovation such as façade and common area improvements. Class B buildings should generally not be functionally obsolete and should be well maintained.

Class C. The lowest classification of office building and space is Class C. These are older buildings (usually more than 20 years old), and are located in less desirable areas and are in need of extensive renovation. Architecturally, these buildings are the least desirable and building infrastructure and technology is outdated. As a result, Class C buildings have the lowest rental rates, take the longest time to lease, and are often targeted as re-development opportunities.

The items above are general guidelines to building classifications.  There are no formal standards when classifying a building.  A Class A Building in Reading may not necessary be a Class A building in Philadelphia.  One of the most important things to consider about building classifications is that buildings should be viewed in context and relative to other buildings within the sub-market.

When considering a classification of an Office or Industrial Property keep the following items in mind.

Office Buildings

  • Visual Appeal
  • Location
  • Access (Major Roadways, Public transportation)
  • Data & IT Infrastructure
  • Elevator Quantity & Speed
  • Construction
  • Common Area Improvements
  • Parking
  • On-site and Nearby Amenities
  • Ceiling Heights
  • Backup Power
  • HVAC Capacity
  • Floor Load Capacity
  • Security & Life Safety Infrastructure
  • Lighting

Industrial Buildings

  • Visual Appeal
  • Location
  • Access (Major Roadways, Public Transportation)
  • Infrastructure
  • Docks
  • Overhead Door Access
  • Column Spacing
  • Ceiling Heights
  • Amenities
  • Office Space
  • Trailer Parking – Car Parking
  • Water & Sewer Capacity
  • Construction
  • Common Area Improvements
  • Backup Power
  • HVAC Capacity
  • Floor Load Capacity
  • Security & Life Safety Infrastructure
  • Lighting