What determines the class of a building and the class of a submarket?
If the class(a,b,c,) of an apartment building is based on the year it was built than what specifically determines the class of the area? And is the year built how most of you determine the building class?
With most Commercial Buildings, the Class (A,B,C) refers to the size, age, quality of workmanship (construction) and amenities offered with A being the most state-of-the-art and offering the most amenities. It is important to note that the class of the building in one market may differ than that in another. For example, a class A property in a big city may be completely different than a class A in a small city. Thus, the classifications are somewhat area specific. No matter where it is, the most expensive building, Class A attracts tenants able to pay more for luxuries (amenities) such as fitness rooms, tennis courts, dog exercise areas, pools, cafes, covered parking, nice elevators, gorgeous landscaping, quality construction on both exterior and interior, well appointed lobbies and meeting areas, etc. This kind of building is typically a high-rise in a business district under 10 years old so it also has up-to-date security systems, HVAC systems and communication systems. They are found in fantastic locations. A Class B building can be made into a Class A with major renovations if it is a high-rise in a prime location.
Class B buildings are typically between 10-20years old and are generally located in the suburbs. The buildings are generally pleasing to the eye but are not jaw dropping like the Class A buildings. They have some amenities such as elevators, pools, landscaping, etc. and and are generally well constructed. Class B buildings should have good HVAC systems and will be in an affordable range, not as high as the Class A buildings. Some Class C buildings can be made into Class B buildings given the right location and modifications/upgrades.
Class C buildings are generally between 20-30 years old or even an older renovated property. The building usually looks a little stale. It may have deferred maintenance and could use some updated mechanics and appliances. These are generally located further away from desirable areas. There is a Class D as well which is even older and requires more work to be done.