Identifying the classification of commercial office buildings

When searching for a commercial real estate investment in Niagara and Hamilton, it is beneficial to have an understanding of the classifications of office buildings in the commercial office market. This will help you to properly identify your needs to your commercial real estate agent. Office buildings can be classified as either Class A, Class B, or Class C building. It is important to understand that this classification system is subjective and that there is not a defined system in market to classify commercial office buildings. Below, I have provided you with a set of general guidelines to identify the proper classification of various properties in the commercial office market.


What separates a difference class buildings?

Class A Building

The highest quality buildings on market- prime location, contemporary designs, high-end construction.

State-of-the-art tenant amenities.

High quality upkeep and maintenance.

Premium tenants and high rental rates.


Class B Building

Newer buildings, often in a non-prime location.

Quality tenant based improvements.

Good general upkeep and maintenance.

Potential for commercial redevelopment into a Class A property.


Class C Building

Older buildings in a less desirable location- usually in need of extensive renovations.

Poor tenant based improvements.

Poor upkeep and maintenance.

Previously occupied office spaces.

May not have modern features, such as air conditioning or parking.

Lowest rental rates.


Finding the right commercial real estate office starts with understanding your needs for and of that space. The search process can be made easier by understanding building classifications in the commercial office market. Connecting with a commercial broker in Niagara will help you further define your search of the perfect space. To learn more about elements of investing commercial real estate, have a look at my previous blogs on commercial real estate metrics and chosing the best location.

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