Key Takeaways
- Subjective Standards: Office classes are relative to the local market; a “Class A” building in a suburb may only rank as “Class B” in a major metro like Manhattan.
- The Three Office Building Tiers:
- Class A Buildings: The “gold standard” flagship buildings with premium amenities (gyms, concierge, LEED) and top-tier rental rates.
- Class B Buildings: The “middle ground” offering functional, well-maintained space at average prices. Usually older than Class A but with solid infrastructure.
- Class C Buildings: The “budget option” featuring basic buildings in secondary locations with minimal amenities, ideal for cost-conscious back-office operations.
- Decision Drivers: Selection depends on location needs and brand image. Class A/B is best for client-facing firms, while Class C can save significant capital for internal operations.
- Market Context (2026 Data): Recent U.S. averages show rents ranging from ~$19.50/sq. ft. (Class C) to ~$39.50/sq. ft. (Class A).
Whether you’re looking for your first office location for your brand-new startup or browsing a for a larger space as your team grows, an office building’s class — Class A, Class B or Class C — is one of the clearest ways of knowing what you can expect. Selecting a budget, picking a list of must-have amenities and even deciding between central or suburban office properties all start with building classification.
The questions we set out to answer are:
- How are office space classifications made?
- What are the main characteristics of each office class?
- How can you make the most informed choice when choosing an office class?
How is an Office Building’s Class Determined?
The most common criteria that determine an office property’s class are:
- Location and accessibility
- Building age and recent renovations
- Quality and aesthetics
- Amenities
However, you should know is that office classifications are not an exact science. The Building Owners and Managers Association (BOMA) – one of the major authorities in commercial real estate – divides office buildings into Class A, Class B and Class C, offering general definitions for each class.
There is no hard-set scoring system to determine each building’s office space classification. Building classifications can also vary from market to market. This means that an office property that’s best-in-class in a smaller market would likely receive a lower classification in a major market that has a wider selection of office spaces.
Additionally, brokers and organizations have also come up with additional classifications to signify prime office space. This classification, alternatively dubbed Class A+, Class AA or even Class AAA brings together the very best in terms of office space at a national or international level, including only the most prestigious, state-of-the-art properties that are only found in top markets such as Manhattan or Los Angeles.
Let’s take a look at a short description of each office space class and what you can expect from them:
A. What is a Class A Office Building?
BOMA describes Class A office properties as “The most prestigious buildings competing for premier office users with rents above average for the area.” Considered the best there is in terms of office stock, Class A office space (and its subcategory of Class A+ office space) is the benchmark against which other office buildings are measured.
Class A office buildings usually have the following features:
- They are prestigious, flagship building in a prime central business district location.
- Distinctive architecture with quality interior furnishings to match.
- Great location with convenient access and plenty of parking.
- High rental rates with strong demand.
- Premier tenants and professional property management.
- State-of-the art mechanical systems, plenty of elevators and 24/7 building security.
- LEED certification.
- Desirable amenities and services such as valet or concierge, on-site retail, restaurants, dry cleaning, fitness centers or child care facilities.
Why Choose Class A Office Space?
Class A office space is best for tenants that wish to make a strong impression and stand out, since such a prestigious environment and location will certainly sway the opinion of clients and attract top talent.
Global corporations, tech giants, law firms, accounting partnerships and business in the financial services industry often lease Class A office space.
B. What is a Class B Office Building?
Class B office buildings are home to a broader tenant base with rents near the market average. Building finishes are above average and the property may offer attractive amenities or be well-positioned in a city, but these advantages are generally below those offered by Class A properties. Of course, the trade-off is a more accessible price.
Class B office buildings usually have the following features:
- Location in secondary central business districts (CBDs) or in areas of main CBDs with lower demand.
- Slightly older office buildings with good finishes inside and out.
- Well-maintained with functional floorplans.
- Average at-market rental rates.
- Quality tenants and good property management.
- Building systems and amenity packages are good, but not at the level of a Class A office building.
Why Choose a Class B Office Space?
Class B office space offers businesses an average at-market rent in exchange for office space that offers great potential with general amenities.
Tenants leasing space in a Class B office building won’t strain their budget paying for things they might not need such as impressive architecture or locations in a market’s best-known office towers. Many large-scale companies relied on Class B offices in their growth phase, and mid-market firms or local businesses appreciate the cost-to-value ratio that these properties offer.
C. What is a Class C Office Building?
Class C is the lowest office building classification, targeting clients that look for functional, basic office space at affordable rates.
Class C office buildings usually have the following features:
- Less desirable location, either toward the suburbs or in older parts of the market.
- Older office buildings with plain architecture.
- A lack of recent renovation works.
- Below-average rental rates within the market.
- Scant amenities and limited infrastructure.
Why Choose a Class C Office Space?
Price-conscious tenants looking for basic, functional, budget-friendly space may find Class C office space attractive as they focus on growth. Because Class C office buildings are often more difficult to lease, motivated landlords offer lower rents, shorter lease terms, and more concessions than would be found in a Class A or Class B office building.
Businesses just starting out before they move up to Class B or Class A office space, and companies that need space for back-office functions like data entry or call centers often rely on Class C properties for their office needs.
How Can You Choose the Right Office Space Class?
The key to choosing the right office space class when starting your search is having a clear picture of your needs, expectations and brand image. If your industry involves meeting clients often, then a higher-rated office space with better architecture and decoration may be important. Meanwhile, if you only lead a small team doing mostly back-office work, a Class B or even Class C office may be the money-smart choice.
Keep these office space class characteristics in mind to make the most informed choice:
Notes: Categories represent general market conventions. Rent data source: Yardi Research.
To summarize, office building classifications present a range of budgets and expectations associated with an office space, from most expensive and prestigious (Class A), to average (Class B) and to the most affordable and plain (Class C). Understanding the specific characteristics, rental rates, and amenities of each classification will help you select the office space that aligns with your company’s operational requirements and financial capacity.
Frequently Asked Questions (FAQ)
Q: Can a building’s classification change over time? A: Yes, classification is fluid. A Class A building can slip into Class B if it is not regularly renovated or if a newer, more technologically advanced Class A+ building opens next door. Conversely, a Class B building can be upgraded to Class A through capital improvements such as modernizing HVAC systems, adding high-end lobbies, or achieving green building certifications like LEED.
Q: What exactly is a “Class A+” or “Triple A” building? A: While BOMA provides the standard A, B, and C tiers, the industry uses Class A+ (or AA/AAA) to describe the best of the best. These are typically iconic skyscrapers in major global hubs like One World Trade Center. They offer ultra-premium features that standard Class A buildings lack, such as 360-degree views, high-tech biometric security, and world-class architecture.
Q: How does the “Flight to Quality” trend affect these classifications? A: In the current market, many firms are engaging in a flight to quality, shrinking their total square footage while moving from Class B to Class A spaces. The goal is to provide a high-end environment that encourages employees to return to the office, using premium amenities like on-site gyms and cafes as a recruitment and retention tool.
Q: Why are Class C buildings often more flexible with lease terms? A: Because Class C properties have lower demand, landlords are often more motivated to fill vacancies. This translates to tenant-friendly concessions such as shorter lease durations (1–2 years), lower security deposits, or a Tenant Improvement (TI) Allowance to help customize the space.
Q: Does “Class B” mean the building is poorly maintained? A: Not at all. Class B properties are usually very well-maintained and professionally managed. The “B” grade typically refers to the age of the building (often 10–30 years old) or a secondary location rather than the quality of upkeep or safety. For many mid-sized firms, Class B offers the best value for the cost.
Q: Are amenities the only thing that separates Class A from Class B? A: While amenities are a major factor, infrastructure is the less visible separator. Class A buildings typically feature redundant power sources, fiber-optic internet backbones, and smart climate control systems that are far more efficient than the older, manual systems often found in Class B or C properties.
Q: How does location affect building class in a suburban vs. CBD context? A: A building’s class is shaped by its accessibility. In the CBD, a Class A designation requires high walkability and proximity to public transit. In the suburbs, a Class A building is defined more by its access to major highways and its ratio of covered parking to square footage.
Lucian Alixandrescu
Senior Content Writer, CRE Industry Reports & Studies
Lucian is a senior content writer for CommercialCafe, specializing in commercial real estate research and data-driven reporting since 2019. With deep expertise in industrial real estate, office markets, demographics, and economics, he produces comprehensive market studies and insights on national and regional CRE trends. He also reports on adjacent subjects such as population shifts and the job market. His reports have been cited by and featured in The New York Times, Forbes, NBC, Bisnow, The Business Journals, and Yahoo Finance. Lucian holds a background in language and literature studies and brings more than 5 years of previous freelance writing experience to his commercial real estate journalism.
