What’s the difference between Class A, B, or C office buildings?

First off, let’s start with the BOMA definition of each building:

Class A

Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence.

Class B

Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area. Building finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same price.

Class C

Buildings competing for tenants requiring functional space at rents below the average for the area.

I can add from my own experience that Class A buildings many times will have a restaurant, bank, 24 hour manned security, covered parking, ect.  Class B will have some of the amenities of Class A, but not all of them.  Class C buildings (greatest value, fewest amenities) may possibly have a deli, video surveillance, fewer floors, ect.  Every time I think the market will follow a standard, CoStar goes ahead and will turn a Class C building into a Class “A” building because of pressure from a REIT, owner, or broker listing the space.

Ultimately, a good tenant rep broker will make sure the market decides the true value of a building, not the letter classification!