{"id":2061,"date":"2018-06-04T16:55:59","date_gmt":"2018-06-04T23:55:59","guid":{"rendered":"https:\/\/www.lee-associates.com\/orange\/?p=2061"},"modified":"2020-01-17T09:23:58","modified_gmt":"2020-01-17T17:23:58","slug":"understanding-building-classifications","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/orange\/understanding-building-classifications\/","title":{"rendered":"Understanding Building Classifications"},"content":{"rendered":"<h2><strong><em>How Are Buildings Classified in Commercial Real Estate? <\/em><\/strong><\/h2>\n<p>Everything in our world is classified.\u00a0Take, for example,\u00a0food.\u00a0Food variations can be classified as Thai, Mexican, Chinese or Italian.\u00a0Just like\u00a0food,\u00a0commercial\u00a0real\u00a0estate, there are building classifications.\u00a0For an investor or tenant, it is crucial to understand how commercial buildings are classified, so that they can obtain the perfect space to accommodate their growing business.<\/p>\n<h3><strong>Factors in Building Classifications<\/strong><\/h3>\n<p>On the surface, building classifications may seem\u00a0simple\u00a0to understand.\u00a0However, once an investor or tenant acquires a more thorough look, they may consider unexpected variables in building classifications.\u00a0Listed below are some key factors on how buildings are classified:<\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\u2022 Building location or submarket<\/ul>\n<ul>\u2022\u00a0Rental prices already being charged in a\u00a0building&#8217;s submarket<\/ul>\n<ul>\u2022\u00a0Materials and methods used during initial construction and\/or current renovations.<\/ul>\n<ul>\u2022\u00a0Building\u00a0services and upkeep<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Building\u00a0Classifications<\/strong><\/h3>\n<p>According\u00a0to the Building Owners and Managers Association\u00a0(BOMA),\u00a0there are three classifications a\u00a0building\u00a0can be given.\u00a0These classifications are\u00a0Class\u00a0A,\u00a0Class\u00a0B, and\u00a0Class\u00a0C. Let\u2019s explore the lowest\u00a0classified\u00a0buildings\u00a0to the highest\u00a0classified\u00a0buildings.<\/p>\n<h3><strong><strong>Characteristics of Class\u00a0C\u00a0Buildings<\/strong><\/strong><\/h3>\n<p>Class\u00a0C\u00a0Buildings are\u00a0buildings\u00a0with the lowest rating a commercial\u00a0building\u00a0can receive.\u00a0Class C buildings fall into two categories &#8211; aging and neglected, in a suitable location, or in good repair, in a less desirable location.\u00a0Rents are on the lower end and access to transportation retail establishments and restaurants varies, depending on the\u00a0building\u00a0location.\u00a0Class C buildings are typically older, further from major freeways and are often functionally obsolete.<\/p>\n<h3><strong>Characteristics of Class\u00a0B\u00a0Buildings<\/strong><\/h3>\n<p>Class\u00a0B\u00a0Buildings are\u00a0mainstream\u00a0and functionally viable buildings.\u00a0Class\u00a0B\u00a0buildings\u00a0contain more utilitarian features that offer common floorplans and adornments.\u00a0Likewise, Class\u00a0B\u00a0buildings\u00a0are usually not new buildings equipped with the latest amenities or features. However, these buildings offer plenty of cost-effective space solutions.<\/p>\n<h3><strong>Characteristics of\u00a0 Class A Buildings<\/strong><\/h3>\n<p>Class A Buildings are extremely desirable for business owners, investors, tenants, and operation managers.\u00a0Class A buildings are frequently in the most desirable locations, provide efficient floorplans, offer unique layouts and first-class amenities.\u00a0Class A buildings can represent landmarks that are designed by well-known architects.\u00a0Likewise, these buildings offer superior property management teams who ensure their buildings are highly maintained.\u00a0Class A buildings have above average exterior and interior adornments, which means, these buildings can sale or lease for steeper prices because of their modern appeal.\u00a0If\u00a0you\u00a0are familiar with Orange County,\u00a0you\u00a0may notice the many high-rise office\u00a0buildings\u00a0around the John Wayne Airport.\u00a0These high-rise\u00a0buildings\u00a0are classified as Class A\u00a0buildings.<\/p>\n<h3><strong>Nullifying Increasing Rents<\/strong><\/h3>\n<p>In general, during a thriving market when rates are rising, tenants often step down to a lower class building to nullify increasing rents.\u00a0During a down market, the opposite often occurs as the higher-class\u00a0buildings\u00a0lower their asking rates to try to maintain\u00a0occupancy.<\/p>\n<h3><strong>Final Thoughts<\/strong><\/h3>\n<p>No matter the class of\u00a0building, <a href=\"https:\/\/www.lee-associates.com\/orange\/\" target=\"_blank\" rel=\"noopener noreferrer\">Lee &amp;\u00a0Associates\u00a0Orange<\/a> can\u00a0assist\u00a0you in\u00a0determining\u00a0the\u00a0building\u00a0that works best for your business.\u00a0 We pride ourselves on enabling our clients to make profitable decisions.\u00a0Our comprehensive commercial real estate services are provided to sellers, buyers, owners, tenants, investors, corporations and developers. We look forward to working with you! <a href=\"https:\/\/www.lee-associates.com\/orange\/contact-us\/\" target=\"_blank\" rel=\"noopener noreferrer\">Contact us<\/a> today!<\/p>\n<p><span id=\"p42\" class=\" s-ja-t\">For the latest news from Lee &amp; Associates Orange, visit us on\u00a0<a href=\"https:\/\/www.facebook.com\/LeeAssociates\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a>,\u00a0<a href=\"https:\/\/www.linkedin.com\/company\/lee&amp;associates%E2%80%93orange\" target=\"_blank\" rel=\"noopener noreferrer\">LinkedIn<\/a>,\u00a0<a href=\"https:\/\/plus.google.com\/b\/109324272392101951996\/+LeeAssociatesOrange\">Google+<\/a>, <a href=\"https:\/\/www.instagram.com\/leeassocorange\/\" target=\"_blank\" rel=\"noopener noreferrer\">Instagram<\/a>, and\u00a0<a href=\"https:\/\/twitter.com\/LeeAssocOrange\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter.<\/a><\/span><\/p>\n<hr \/>\n<p><em>by Staff Writer, Lee &amp; Associates Orange<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How Are Buildings Classified in Commercial Real Estate? Everything in our world is classified.\u00a0Take, for example,\u00a0food.\u00a0Food variations can be classified&#8230;<span class=\"readmore\"><a class=\"moretag\" href=\"https:\/\/www.lee-associates.com\/orange\/understanding-building-classifications\/\">+<\/a><\/span><\/p>\n","protected":false},"author":28,"featured_media":2082,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,14,16],"tags":[32,123,116,120,56,121,122,17,86,78,119,18,64,124,117,125,113,126,27,30,118,69],"class_list":["post-2061","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-industry-information","category-lee-orange-exclusive","tag-blog","tag-blogging","tag-brokers","tag-building-classifications","tag-buildings","tag-classification-of-buildings-in-commercial-real-estate","tag-classifications","tag-commercial-real-estate","tag-commercial-real-estate-brokerage","tag-commercial-real-estate-news","tag-commercial-real-estate-services","tag-industrial","tag-industry-information","tag-industry-leader","tag-investor","tag-lee-and-associates","tag-lee-and-associates-orange","tag-orange","tag-orange-county","tag-owner","tag-real-estate","tag-tenant"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.5 (Yoast SEO v28.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What are Building Classifications? | Lee Associates<\/title>\n<meta name=\"description\" content=\"On the surface, building classifications may seem\u00a0simple\u00a0to understand. 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