Welcome to the official blog of Block Real Estate Services, LLC (BRES). BRES seeks to offer insight and news concerning commercial real estate, financial investments, construction and development of the 212 communities we serve locally and nationally.

Thursday, August 28, 2014

Class A, Class B or Class C: Special Orders Don't Upset Us

You need a "special sized CRE Space" we can help youGot Questions?  We have the answers!
In the Commercial Real Estate (CRE) field there are many questions that need to be answered before
CityPlace Class A Office
narrowing down the property list for a buyer.  Did you know there are three different types of office space?  Class A, Class B and Class C. Buildings are given a classification depending on the quality of building materials, the location, and the onsite or surrounding amenities.

Class A:
This is the highest level of classification and means the property excels in each of the areas. They utilize the highest quality materials in their construction and finishes while also being a new construction or newly renovated facility. They're located in prominent locations with excellent access to major roads, creating great visibility. Included with the facility are amenities on site and higher levels of surrounding amenities due to their location. These amenities can include the level of technology incorporated into the property and having the facility professionally managed. Because of the high levels in all of the areas this classification will commonly draw high quality tenants and have the highest rent of the classifications.

Class B:
Just under Class A, Class B will have commonly been a Class A property at one point in time. When they were constructed they utilized the best quality materials but due to age have declined in comparison to the newer properties. Investors will often look for Class B properties because they have an excellent location and can be brought back up to Class A with a mild renovation. These buildings also possess on-site amenities just below Class A but similar surrounding amenities. Because of the increased age and lower on-site amenities Class B buildings do not compete with Class A for the high quality tenants or at the higher rent rate.

Class C:
Buildings in this classification are much older than Class B and A. With their age exceeding 20 years they will not have been recently renovated with newer materials and infrastructure items. If they were never Class A then it is unlikely that their location will be in a high visibility area or that the surrounding amenities are plentiful. These facilities provide functional space at very low rent and can frequently take major renovations to raise them up to Class B.

Each of these classifications are dependent on the city. What would commonly be Class A in one city might be Class B in another. The Kansas City area has options available in each of these classifications and Block  
Real Estate Services, LLC (BRES) will be breaking ground this fall on their newest Class A development, CityPlace.

Contact our team or visit the CityPlace website for more information.

Estel Hipp - Block Real Estate Services, LLC

Estel Hipp
Sr. Vice President
Block Real Estate Services, LLC

Hunter Johnson - Block Real Estate Services, LLC

Hunter Johnson

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