What distinguishes Class B office space from Class A?

Class B office space is characterized by several attributes, among which is the quality and finishes of the building. It is recognized that Class B properties generally have inferior building finishes compared to Class A spaces, which are known for their modern amenities, higher-quality construction, and desirable locations. Additionally, Class B spaces tend to have lower rental rates than Class A spaces, making them more accessible to a variety of tenants, especially small to medium-sized businesses looking for more economical options.

The distinction between Class A and Class B is essential for understanding market positioning and tenant demographics. Class B buildings may still be functional and appealing but do not have the same prestige or investment appeal as Class A buildings. This classification influences how real estate professionals assess property values, make investment decisions, and strategize leasing opportunities in the marketplace.

In summary, the key aspect of Class B office spaces that sets them apart from Class A is the combination of inferior finishes and lower rental rates, making this a significant factor in real estate development and reuse discussions.