An office structure in the Houston area can be classified as Class A, B, or C. Tenants of these spaces benefit by knowing exactly what these classifications mean. The market, as well as the condition of Class-A buildings often determines where each space fits in this ranking system. Rankings make it easier to report market data because the information can be separated by building types. Second, they allow businesses to know the differences between structures. Classifications can be based on overall building condition, location, infrastructure, construction, nearby attractions, as well as many other factors. The Energy One Center is one of many highly ranked buildings in the Houston area.
Class-A spaces are considered to be the highest quality obtainable in a particular market or area. They are well kept, have great visual appeal, and are constructed with superior materials. Their infrastructure is also top notch when compared to lower class buildings. When a space has this rating, it is considered to be in a prime location. Most are easily accessible and managed by professional services. These factors affect the types of tenants occupying the building. Class-A commercial spaces typically have the most notable tenants. They also have a higher overall rental expense for any occupying business. The Houston Energy One Center is an example of this building class. It was constructed in 2008, spans 332,000 square feet, and currently houses the Foster Wheeler company.
Class-B commercial facilities are not as new as the above buildings. They tend to have exceptional management along with notable tenants. In some cases investors actually seek these structures over higher ranked ones. This is because a few simple changes can actually increase them back to a Class-A status. In order for a building to be classified under this category, it must not be obsolete in functionality and has to be cared for appropriately.
If an office space is classified under the C category, it has been given the lowest ranking possible in a particular market. They are typically over twenty years old and are located in less prosperous areas. Most need a hefty amount of renovation to be completely operational. In most cases, their architecture is unattractive and even shoddy. The company's technology, along with its infrastructure is usually outdated and needs to be upgraded. These factors cause buildings with C rankings to offer the smallest leasing rates. Many investors see Class-C buildings as a re-development project instead of a rental opportunity.
While Class-A buildings, such as the Houston Energy One Center, cost more to lease, they offer the exposure and visual ease most businesses need to appeal to various types of customers in an area. A prospective client is more likely to do business if the space is clean, comfortable, and portrays a sense of success for the company. When a client has to enter a run-down area of town, or notices that serious cosmetic work is needed for the building, the client might become reluctant about a business deal. Most customers want to feel like they are working with or providing their business to a classy and dependable company. If a business has a stunning and well-kept commercial space, it can leave quite an impression on a customer.
While researching building classes, I found useful information at http://www.boma.org/ and about Houston Commercial Properties at http://www.wellsreitii.com/, a Real Estate Investment Trust ( REIT ).
0 коммент.:
Post a Comment