The Difference Between Class A, Class B, and Class C Office Buildings [2025 Edition]

Updated March 2025

When evaluating commercial real estate office space, understanding building classifications—Class A, B, and C—will help you narrow your search and align your lease with your company’s needs. These unofficial categories reflect a building’s age, amenities, location, infrastructure, and reputation in the local market.

Of course, there’s a bit more to it than that. Let’s review the basics of building classes.

What Determines a Building’s Class?

There’s no single governing body for building classifications, but most brokers, landlords, and property managers assess buildings based on:

• Building Age: Newer constructions often fall into higher classes.​
• Location and Accessibility: Proximity to business districts and transportation hubs enhances a building’s class.​
• Rental Rates: Higher rates often correlate with higher classifications.​
• Market Perception: The building’s reputation within the commercial real estate market.​
• Building Finishes: Quality of materials and architectural design.​
• Amenities: Availability of services like on-site management, security, and fitness centers.​
• Maintenance Quality: Regular upkeep and responsiveness to repairs.
• HVAC Systems: Efficiency and modernity of heating, ventilation, and air conditioning systems.

So why do we classify buildings? Having a rating system in place promotes a standardized understanding of office markets and conditions across building classes. (However, it’s important that a building’s classification be evaluated in the context of its market, as standards vary by region — and often even within submarkets).

Keep reading to learn about each building class.

Note: Classifications are relative to local submarkets. A Class A building in Cleveland may be considered Class B in San Francisco.

Class A Office Buildings

Without fully knowing what Class A buildings are, you can probably figure out just by the name that they’re the cream of the crop. Class A office buildings are the highest-quality buildings in a given market. They attract top-tier tenants, offer prestige and best-in-class amenities, and command the highest commercial real estate price per square foot.

Features

• Prime locations in central business districts, like Hudson Yards in New York or Century City in Los Angeles
• New construction or major recent renovations
• State-of-the-art infrastructure, features, and finishes, including fancy HVAC systems and fast, reliable internet
• On-site amenities, often including security, concierge services, gyms, lounges, valet services, parking, and even in-building dining
• Strong ownership and management
• Exceptional market visibility and curb appeal
• A host of premier and/or high-profile tenants in the building

A good example of a Class A building is 1500 Broadwayin Times Square, NYC, is a Class A building home to tenants like Disney and NASDAQ. It features attended lobbies, fiber internet, and a premier Midtown location—factors that maintain its Class A status even five decades after construction.

Another example of a Class A building at 437 Madison Avenue in Midtown Manhattan—pretty swanky!

In summary, Class A property is built to impress. If you’re an industry leader or otherwise work in a business where prestige is a valuable currency, leasing office space in a Class A building makes quite the statement.

Class B Office Buildings

Class B buildings are solid, professional spaces with fewer frills than Class A properties. They tend to be older, with slightly dated systems and fewer luxury amenities—but they offer good value and location.

Some Class B buildings enjoyed Class A status in their heyday—they’re just slightly older now, with visible signs of age. If you’re looking for a comfortable, elegant, functional space without the “wow” factor—or the high price—of Class A properties, Class B buildings are a sensible option.

Features

• Located in secondary business districts or inner suburbs
• Good but aging infrastructure
• Professional appearance and functionality
• Some shared amenities (e.g., bike storage, shared outdoor space)
• Potential for tenant improvements or repositioning

An example of a Class B office building is 59 Maiden Lane, NYC. Built over 50 years ago, this building is centrally located in the Financial District and remains attractive to tech and consulting tenants due to its accessibility and competitive pricing.

An example of Class B office space: Elegant and functional but without all the bells and whistles associated with Class A space.

Class C Office Buildings

Class C office space is the most budget-friendly tier. These buildings tend to be older, with dated finishes and few amenities. Though they’re affordable, you definitely get what you pay for—like a patch of hallway for a “lobby” or a glacially slow elevator. They also might be located in less-than-desirable neighborhoods. Class C properties have fewer tenant services, so you won’t get a lobby attendant or routine upkeep.

There are typically fewer Class C office buildings on the market because they struggle to compete with higher-quality office spaces. These properties often undergo renovations or are converted into residential units.

Features

• Over 20 years old, minimal upgrades
• Basic infrastructure (slow elevators, outdated HVAC)
• Limited or no on-site services
• Low rental rates relative to market
• Often targeted for redevelopment or conversion

When to Consider Class C

If your priority is price over polish, Class C space may offer a cost-effective solution for startups, freelancers, or small businesses. While rare in competitive urban markets, they still exist in suburban or fringe districts.

Alternatives: Flexible Office Platforms

If you’re seeking higher-end space at lower commitment levels, flexible office platforms may be a better fit than traditional Class C leases. Options like WeWork, Industrious, or Knotel offer shared office space or short-term leases in Class A and B buildings—ideal for teams that value aesthetics and location but don’t need a full-time private suite.

Final Thoughts

Choosing the right office space is about more than just square footage—building class impacts your rent, perception, access to talent, and employee experience.

Whether you’re a startup looking for value, or a global firm seeking prestige, understanding commercial real estate building classes will help you make a smart, strategic decision.

Frequently Asked Questions (FAQ)

What is the difference between Class A, B, and C office buildings?

In a nutshell…

• Class A = high-end, central, full-service;
  Class B = functional, affordable, good locations;
  Class C = older, basic, low-cost.

Can a building change classes?

Yes. Class B buildings can be renovated to compete with Class A. Similarly, Class C buildings are often repositioned into residential or redeveloped.

Are building classes consistent across cities?

No. A Class A building in Houston won’t necessarily match the standards of Class A in New York City. Classification is relative to local commercial real estate markets.

How do building classes affect rental rates?

Class A = highest commercial lease rates; Class B = moderate; Class C = lowest. Amenities, location, and management all factor in.

Should small businesses avoid Class A buildings?

Not necessarily. If prestige matters (e.g., for client-facing industries), Class A may be worth the cost—or accessible via flexible office providers.

What if I want a high-end space but can’t afford a full lease?

Look into flexible office leasing platforms. They allow you to lease a portion of a Class A or B space on flexible terms.

📩 Need help finding your next space? Contact us for personalized support in navigating building classes, rental rates, and space selection.