The class of a building has a major impact on its cost for rent, regardless of any other considerations. However, class alone does not determine the value of office space – and this guide will help you determine which building class is most suitable for your company.

Age

Age, naturally, refers to how old the building is. However, aside from the basics – new buildings tend to be of a higher class and age is the least important aspect of a building’s classification. Many older buildings – especially iconic locations like the Willis Tower – can remain Class A for years because of factors like their history, their location, or the upkeep and amenities continually improving.

• Class A: When it comes to age, Class A buildings tend to be new and shiny. Modern construction techniques continue to improve and incorporate new ideas an innovations that older buildings never even had the chance to install.
• Class B: Class B buildings tend to be “newer” instead of “older” – though this is a relative term, and some office spaces may be decades old. However, it’s rare that a brand-new building will be considered Class B; expect at least a few years and one or more previous tenants in the office space.
• Class C: These offices tend to be the oldest in a given area. Some may have concerning structural issues, and problems with wiring and plumbing have been known to surface on poorly-maintained properties as a result of their age.

Location

Location is a major consideration for office buildings, but it isn’t only about the placement on a map. A building may be located on a major intersection, but a different building a block or two away could have much better access to transportation, restaurants, and other forms of service and support that turn it into a better place to work.

• Class A: These buildings tend to be located close to main intersections along routes like the Magnificent Mile. However, location is a complex subject – even within Chicago’s Loop area, many offices fall into Class B or Class C despite being in an accessible area. It’s important to consider the area holistically, and remember that location is not always the biggest factor in how a space is rated.
• Class B: Class B buildings tend to be located near – but not directly on – the major streets of an area. many of these buildings will be found one or two blocks down from the main roads, remaining accessible to employees and visitors alike. It’s worth noting that many businesses prefer Class B buildings for this very reason – being away from major roads means less traffic to deal with, less crowding in local shops, and lower rent payments.
• Class C: These offices are almost universally located well away from the main roads. They may not be very accessible for consumers, but that’s far less important if the office doesn’t actually need customers to come through the door. Location is largely subjective – a building isn’t bad because of location, it’s just less suitable for some types of businesses (and an affordable place to grow for many others).

Maintenance

This is one of the key factors in determining a building’s class. Maintenance can – and does – make all the difference, regardless of the age and location of the building.

• Class A: These buildings tend to be either too new – and simply haven’t had the time to run down yet – or too well-maintained to be part of a lower class. A robust maintenance schedule can keep a building in this classification for decades – in fact, it may never even drop out as long as it’s in operation.
• Class B: Adequate maintenance is the hallmark of these buildings – most problems are fixed in a timely and affordable manner, though major changes may take years to do.
• Class C: Some Class C buildings are poorly maintained – and that’s a major cause of their lowered class. However, Class C does not inherently mean that an office isn’t maintained – it’s important to review buildings on an individual basis before making a decision about their worth.

Conclusion

Most office buildings allow for at least some degree of renovation – and building class isn’t the only thing you should be looking at. A solid one-time investment can turn a Class B (or Class C!) office into something resembling Class A – and without the increased monthly cost that a different office space would demand.

In short, you do have options, and few landlords will object to reasonable in suite improvements being made. Ask yourself what you truly need to have and what you can do to change the space to your liking – when done right, you could spend less and still move into a beautiful office space.

Bonus

Are you the type of buyer who wants the inside scoop? Here is our inside information on what we see as great values within class A and B in the Central Loop. (Although – you can’t go wrong with choosing Chicago as your office location!)

Class A: For a 7,500 SF or less requirement 120 N LaSalle is an A building with parking in the building. The smaller (12,000 SF) floor plates allow for plenty of natural light, and windows in the majority of the offices. 120 N LaSalle should come in around the low $30’s gross which is great value when the majority of B buildings are also in the low $30’s gross.

Class B: It couldn’t be more Chicago being across from City Hall! 111 West Washington, the Burnham Building is a clean B + building recently leasing in the high $20’s Gross. For a 2500-7500 SF tenant there should be some good space alternatives with views over Washington Street. The corner spaces are ideal at Burnham along with newly renovated elevator cabs, nice lobby and amenities.