Understanding the Three Office Space Classifications
Commercial office space refers to any commercial property that offers one or more rooms suited to a business performing office-related or administrative duties, such as meeting clients, housing documentation, or scheduling appointments, to name a few. Just as the term itself can encompass a broad variety of different businesses, there are different classifications within the genre of commercial office space that deserve understanding as well. The standards that define these different office space classifications will vary from market to market, but there are some general characteristics that will help you to determine what type of property you are looking at.
Class A commercial office space is typically the most sought after in any market. These properties are generally newer buildings that are well constructed and offer high-quality infrastructure to tenants. You may be able to identify these types of properties by their visual appeal, too, as upkeep and maintenance on Class A buildings are of the utmost importance. Features such as top-notch amenities, upgraded fixtures, top-of-the-line HVAC systems, and eco-friendly upgrades may be offered standard. These spaces may also come with hefty price tags. The high costs are associated with the fact that these properties offer the best accessibility and exposure, located in high-traffic areas and conveniently near major roadways and airports. Class A buildings will also likely be professionally managed by a reputable company and will boast many quality, long-term tenants.
Class B commercial office space may be a slight downgrade from Class A properties, but it still holds a lot of weight in the commercial world. These buildings offer much of the benefit of Class A properties, such as professional management companies, quality tenants and good access, without all of the extra costs. Class B properties will likely be a bit older, but will still have good bones and be well maintained. This classification is quite appealing to investors, as their value can generally be increased easily by making simple upgrades and repairs (sometimes even enough to move them up to a Class A property).
Class C commercial office space does not typically offer the same level of building quality as its counterparts. In fact, Class C properties are among the most poorly constructed and tend to be located in much less desirable locations. They often require quite a bit of time, money and attention just to get them ready for tenants to occupy. Often, this is simply a result of the building’s age, as Class C properties tend to be twenty years old or more. They do, however, also serve a purpose. These types of properties are great for big-scale investors looking to rehab areas within a city. They are also quite often suitable for smaller companies that don’t have the finances available to invest in a higher class property. With some work and effort, these properties might be able to upgrade to Class B, but the likelihood of them ever making Class A status is slim, largely due to their location.
Which Classification is Best?
The simple answer here is that nobody but you can decide which type of commercial office space is best suited to your needs. It really depends on what you are looking to get out of the property. If, for example, you are an investor who has the means to spend some money on upgrades, a Class B or C property might be an excellent idea for you. If you are a small business that doesn’t want a lot of overhead and doesn’t require a space that offers a high level of exposure, a Class C property could make a lot of sense. If you run a business that brands themselves around innovation and technology, it could make more sense to pay a higher price tag to end up in a thriving locale with upgraded amenities. Your needs, your finances and your vision for your business will all play largely into the decision of which type of commercial office space will work the best for you!
Looking for Commercial Office Space in Hattiesburg or the Surrounding Areas?
Whether you know what you are looking for or not, the experts at SVN | Southgate Realty, LLC are certain that we can help you find the perfect space for your commercial office. Investors and businesses alike will appreciate the level of dedication and professionalism that each of our team members brings to the table. We won’t stop working for you until you’ve closed on the perfect property! Don’t hesitate! Contact us today so we can show you why our team has been successfully serving the Hattiesburg area for over 37 years!