Office properties in the US are generally classified into four categories and these are namely Trophy Class, Grade A, Grade B and Grade C. In this section we discuss characteristics of Class C Office properties, as generally defined by the real estate industry.
Buildings in this category are typically more than 20 years old and are often in need of renovation, including the update of basic building infrastructure such as air-conditioning systems.
Grade C office spaces have the lowest rents in a market, and properties in this category appeal to a typically small, and value-conscious tenant base.
The following table generally summarises the key differences between the classification definitions of US office spaces, with information drawn from various industry entities such as the Building Owners and Managers Association (BOMA) International, and Manulife US REIT.
|Trophy class||Grade A||Grade B||Grade C|
|Tenancy||Household names in industry, usually first occupiers||Prestigious tenants, usually first occupiers||History of at least one previous tenant||Long history of occupation by multiple previous tenants|
|Age||<15 years||<15 years||10-20 years||>20 years|
|Quality||Landmark architecture, renowned as prestigious buildings||High quality construction and workmanship||Average finishes, offers more utilitarian spaces||In need of renovation, including basic building infrastructure|
|Features||Indoor atrium and greenery, exclusive ancillary retail and F&B options.||Indoor atrium and greenery, ancillary retail and F&B options. Large windows for natural light, and ceiling height of at least nine feet||Outdated features and spaces||Lacking in modern amenities|
|Services||Personalised services concierge and security||Concierge and security services||May have attendants on duty during office hours||No attendants on duty|