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Mark Rauch's Tenant Rep Times      January 23, 2012                 
 
Southern California Tenant Representation     
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MARK DAVID RAUCH
Greetings!
 
Welcome to the "Tenant Rep Times".  You are receiving this edition of my eNewsletter because you rent or own commercial office space and are either my client or a potential client.  I trust you will enjoy this issue and get a "gem" or two out of it.   
 
Your email address will only be used to communicate with you and will NEVER be sold, shared, rented or otherwise provided to other entities.
IN THIS ISSUE
THE 3 CLASSIFICATIONS OF OFFICE BUILDINGS
THIS WEEKS RESOURCE
MARK'S' POINT OF VIEW
 
The 3 Classifications Of Office Buildings
Presented By Mark Rauch
 

"Hell, there are no rules here-we're trying to accomplish something" 

                                                                       -Thomas A. Edison-                            

        

When considering office space, tenants will find that office buildings are generally classified as being either a Class A, Class B, or a Class C building. The difference between each of these classifications varies by market and class B and C buildings are generally classified relative to Class A buildings. Building classifications are used to differentiate buildings and help the reporting of market data in a manner that differentiates between building types. That said, there is no definitive formula for classifying a building, but the general characteristics of each are as follows:

  • Class A. These buildings represent the highest quality buildings in their market. They are generally the best looking buildings with the best construction, and possess high quality building infrastructure. Class A buildings also are well-located, have good access, and are professionally managed. As a result of this, they attract the highest quality tenants and also command the highest rents.
  • Class B. This is the next notch down. Class B buildings are generally a little older, but still have good quality management and tenants. Often times, value-added investors target these buildings as investments since well-located Class B buildings can be returned to their Class A glory through renovation such as facade and common area improvements. Class B buildings should generally not be functionally obsolete and should be well maintained.
  • Class C.The lowest classification of office building and space is Class C. These are older buildings (usually more than 20), and are located in less desirable areas and are in need of extensive renovation. Architecturally, these buildings are the least desirable and building infrastructure and technology is out-dated. As a result, Class C buildings have the lowest rental rates, take the longest time to lease, and are often targeted as re-development opportunities.

The above is just a general guideline of building classifications. No formal international standard exists for classifying a building, but one of the most important things to consider about building classifications is that buildings should be viewed in context and relative to other buildings within the sub-market; a Class A building in one market may not be a Class A building in another.

Were there a more scientific method for classifying buildings, some of the building characteristics which could be used to compare and rank buildings would be as follows:

  •  HVAC Capacity
  •  Elevator quantity and speed
  •  Ceiling heights
  •  Floor load capacity
  •  Location
  •  Access (freeway, public transportation)
  •  Parking
  •  Construction, Common Area Improvements
  •  Nearby and/or on-site amenities (dry cleaning, restaurants, ATM, etc.)
  •  Security and life safety infrastructure

Nothing contained herein is to be considered legal advice. Always seek legal advice when evaluating any legal document.

This Weeks Resource  

 

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Mark's Point Of View


Question: Mark, in what geographical areas are your services available?
  
Answer: My skills and processes are completely transferable. I can effectively manage projects anywhere in the USA and beyond.
  
I also want to reiterate that we are requesting meetings with Professional and Corporate Office Tenants

 

We are looking to represent a handful of Tenants, each occupying 5,000 rentable square feet to 500,000 rentable square feet.

 

Please call or email us to schedule a time to discuss how we can help.
 
The only way to help you is to hear from you.

Please don't keep me a secret.  Other than representing you, a referral is the greatest compliment I can receive. 
My focused specialty is solely driven to advocate the office space interests of Southern California-based corporations and professional services firms in leasing and purchasing negotiations of all types-renewals, relocations, renegotiations, recasting, subleasing, terminations and investments on a local, regional, national and international basis through a network of offices in 200+ markets around the world.
 
Assignments range from single office lease transactions to national and multi-national real estate portfolios.
 
It is my sincere desire to develop meaningful, long term relationships as your trusted
Tenant Rep Consultant and friend.
 
Regards, 
 
Mark
MARK DAVID RAUCH 


Thank you for taking the time to spend a few minutes with me.

Sincerely, 
 
Mark D. Rauch
Senior Vice President
Travers Realty Corporation
Direct: 213-430-2469
Mobile: 818-943-2959

mrauch@traversrealty.com
License # 01019455 
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