If you own or manage a commercial office property, you’ve probably heard buildings described as Class A, Class B, or Class C. You might wonder what these labels really mean for you and your tenants. In simple terms, these classes are a way to rank office buildings by quality, age, location, and amenities. But more importantly, they hint at what kind of tenant experience you can offer and what tenants expect from your building. Understanding where your property falls can help you attract and retain tenants, plan upgrades, and position your building in the market. It can also guide you in creating a better day-to-day environment for the people who work in your building.
Remember, building class isn’t about passing a formal test or certification – it’s a general industry convention. There’s no single authority handing out “Class A” labels. Instead, brokers, owners, and managers determine class based on factors like a building’s age, location, rental rates, amenities, and overall reputation. For example, a brand-new skyscraper in a downtown business district with high rents and luxury finishes would likely be considered Class A. On the other hand, a 30-year-old office building with average rents and basic features might be Class B, and a small older building on the outskirts of town could fall into Class C. These classifications create a common language so everyone knows roughly what to expect from a building’s quality.
One important thing to keep in mind: building classes are relative to the local market. A Class A office building in a smaller city might not be as flashy as a Class A tower in New York City. In fact, a building considered Class A in Cleveland could be viewed as Class B in San Francisco. Each market has its own standards. In a major hub like NYC, a Class A building often means an iconic high-rise with top-tier amenities – the kind of property that stands out even among many competitors. Meanwhile, in a less dense market, the best building in town (even if it’s simpler) would earn the Class A title. Understanding this relativity is key when you evaluate your own building: your class is measured against other buildings in your area. Now, let’s break down each class and see what it means for your tenants’ experience.
An example of a Class A office building (The Willis Tower). Class A buildings often feature prime locations, impressive architecture, and top-tier amenities that set them apart. These properties might house major corporate tenants and provide extras like on-site fitness centers, modern elevators, and smart climate controls. All these features contribute to a premium tenant experience, which helps justify the higher rents that Class A buildings command.
Class A buildings are the cream of the crop. Industry groups like BOMA (Building Owners and Managers Association) describe Class A as the “most prestigious buildings competing for premier office users, with rents above average for the area.” These buildings have high-quality finishes, state-of-the-art systems, excellent accessibility, and a strong market presence. In other words, they’re the best buildings in their market. Think of sleek, modern towers or beautifully renovated historic buildings in prime locations. They often boast features like elegant lobbies, fast elevators, advanced HVAC systems, high-tech security, and a full suite of amenities from parking to on-site gyms. A Class A office building also tends to attract well-known, top-tier tenants and offers a level of prestige – leasing space there makes a statement. It’s not unusual for a Class A property to command the highest rents in the city, due to its prime location and exceptional offerings.
If you own or manage a Class A office building, your tenants expect an excellent experience every day. These tenants are often established companies willing to pay a premium, so they anticipate that everything in the building will be a notch above. From a tenant’s perspective, Class A means comfort and convenience: the lobby is attractive and staffed with security or concierge service, the restrooms and common areas are spotless, and the climate control is steady and comfortable. They expect reliability, like elevators that rarely break down and management that responds quickly to any issue.
You likely invest more in amenities and services, and it pays off. Studies show that tenants are indeed willing to pay significantly more to be in Class A spaces. In fact, recent market data found Class A office rents are around 84% higher than those of non-prime Class B/C properties, highlighting how much more tenants will invest in quality and amenities. This premium is supported by the superior tenant experience you provide. Even in a challenging office market, Class A buildings tend to outperform lower classes in attracting leases. For example, many of the biggest new office leases in early 2025 were signed in Class A properties, as companies flocked to higher-quality space. In short, if you maintain your Class A building well, you’ll typically see stronger demand because you’re offering what tenants crave: a top-notch workplace environment.
How Class A impacts tenant experience: Tenants in Class A buildings usually enjoy modern amenities and a sense of prestige. The high-end environment can boost employee morale for those tenants. Imagine workers and clients walking into a stunning glass tower with a grand lobby versus an aging building with flickering lights. Little perks add up: an on-site café for morning coffee, a fitness center for convenience, or a rooftop terrace for lunch breaks all contribute to tenant satisfaction. You should ensure these amenities are well-run and consider adding new ones as expectations evolve.
The bar is high: if a new Class A building opens nearby with even more features (say, a meditation room or app-based access controls), your tenants might start to compare. Staying attentive and innovative keeps your Class A property desirable. The good news is you likely have the budget (thanks to those above-average rents) to continuously invest in the tenant experience, whether it’s periodic renovations to keep spaces looking fresh or technology upgrades to make the building smarter and greener. By being proactive, you not only keep your Class A status but also keep your occupants happy to renew their leases.
Class B office buildings are the solid workhorses of the commercial real estate world. They offer fewer frills than Class A, but they can still provide a professional, comfortable environment. A Class B building might have been Class A in its heyday, until newer properties outshined it. Typically, Class B properties are a bit older, maybe 15 to 30 years old, and while they are generally well-maintained, they lack the latest shine or cutting-edge systems. BOMA’s definition notes that Class B buildings have rents around the average for the area, with “fair to good” finishes and adequate systems, though they don’t compete with Class A buildings for top-of-line prestige.
In practical terms, if your building is Class B, it probably has a decent location (though not the very best in town), and it’s in good functional condition even if the décor or technology is slightly dated. These buildings often reside in secondary business districts or popular suburbs rather than the prime downtown corner. Amenities in Class B offices are usually basic: perhaps a small lobby, maybe a shared conference room or parking, but not the extensive range of services a Class A building would offer. Importantly, Class B tends to represent good value: the rent is more affordable than Class A, attracting tenants who want a balance between cost and quality.
From a tenant experience perspective, Class B buildings deliver function and value. If you manage a Class B property, your tenants likely chose it because it meets their needs without the premium price. They may not expect a luxury fitness center or marble floors, but they do expect a comfortable, efficient workspace. This means your building’s elevators, heating/cooling, and other systems should run reliably (even if they aren’t brand new). Cleanliness and safety remain absolutely crucial. A mid-range building can still feel inviting and professional if it’s kept clean and secure.
Many Class B offices have the potential for improvements or repositioning, and you might consider strategic upgrades to enhance tenant experience. For example, updating the lighting in common areas, renovating an outdated lobby with modern finishes, or adding a shared amenity like a bike storage room could elevate the feel of your building. These upgrades can sometimes bump a high Class B building closer to Class A status, or at least make it more competitive. Tenants appreciate when you reinvest in the property; it shows you care about their comfort and the building’s quality.
However, managing a Class B property also means keeping an eye on competition. In many markets, there’s a trend known as “flight to quality,” where tenants who can afford it will move from Class B to Class A spaces to give their employees a nicer experience. During the early 2020s, higher-end buildings saw more leasing interest, while many Class B and C offices struggled with higher vacancy as companies upgraded to Class A. What does this mean for you? It means focusing on tenant satisfaction in your Class B building is key to retaining your tenants. You might not be able to suddenly turn your property into a shiny new tower, but you can make it the best version of itself.
Emphasize responsive management: prompt maintenance, clear communication, and a personal touch can go a long way. Invest in commercial property management software that centralizes operations and facilitates positive tenant experiences. When tenants feel that issues are addressed quickly and management is on their side, they’re more likely to overlook the slightly older carpet or the lack of a view. Additionally, Class B owners often succeed by highlighting what does set their building apart. For example, maybe you have plentiful parking, a convenient location near a transit line, or a tight-knit community of businesses in the building.
By leveraging these strengths and making incremental upgrades, you can deliver an experience that keeps solid tenants happy. After all, many businesses prefer the affordability and practicality of Class B space when it’s well run. Your goal is to ensure your building is seen not as a downgrade from Class A, but as a smart, comfortable choice for the price, one that you are continuously improving.
Class C office space is typically the budget-friendly tier of office buildings. These are often older buildings (20+ years old) that haven’t been significantly renovated, and they offer the most basic functionality. If your property falls into Class C, it might be in a less prime location – perhaps on the fringes of the business district or in an area that’s harder to access. Rents are usually below the area average for offices, which is a big draw for tenants who need lower costs. Class C buildings usually have noticeably dated finishes and infrastructure. For example, you might have an older HVAC system, slower elevators, or simply fewer elevators for the number of floors.
There may be little to no amenities on-site; tenants in Class C generally won’t expect a café, concierge, or high-tech conference center in the building. In fact, some Class C properties might not even have a proper lobby or any kind of common gathering space beyond the hallways. The overall philosophy is “no-frills, just space.” That said, Class C doesn’t mean unusable – it means the space is functional and can get the job done for tenants that primarily care about cost savings. Many Class C offices are leased by small businesses, startups, or organizations like nonprofits that need affordable office space and are willing to sacrifice polish for a lower price.
For tenant experience, Class C buildings present both challenges and opportunities. On one hand, the expectations of tenants are modest. They know they’re not paying for luxury, so they’re unlikely to demand fancy décor or cutting-edge smart building features. What they do need, however, is reliability and safety. If you manage a Class C building, the best way to keep tenants happy is by ensuring the basic services work well.
That means keeping the heating and cooling consistent (even if the system is old, stay on top of maintenance and repairs), making sure the lights and plumbing are functioning, and providing adequate security so tenants feel safe coming and going. Your personal attentiveness as a property manager can really stand out here: because the building itself isn’t doing you many favors in terms of impressiveness, the customer service you provide becomes a huge part of the tenant experience. Promptly address issues like leaks, broken fixtures, or cleaning needs. A tenant in a Class C space will be grateful that you fixed the HVAC on a cold day far more than they’ll miss having a doorman. Also, keep the building clean and tidy – even old finishes look better when they’re clean, and cleanliness is one area where you can meet high standards regardless of class.
It’s worth noting that Class C buildings can struggle in competitive markets. There are typically fewer Class C offices available in prime areas because many get renovated or converted to other uses over time. If a Class C building sits half-empty, owners often consider upgrading it to Class B through renovations or even converting it into apartments or other uses to make it profitable.
You should be mindful of this. If you’re experiencing high vacancy and you have the capital, investing in upgrades could pay off by bumping your building up to a Class B and attracting more tenants. Even simple improvements like refreshing the paint, improving lighting, or updating an outdated lobby (if you have one) can start changing how people perceive your property.
Of course, not every Class C owner can pour money into the building, and that’s okay. You can also find creative ways to add value. Maybe partner with a local food truck to stop by at lunchtime since you can’t offer a cafeteria, or establish a shared conference room tenants can reserve (even if it’s just a converted office). Even adopting a tenant experience platform can make your building feel more modern without needing to do any renovation. Showing that you care about tenants’ needs makes a big difference. It can turn a bare-bones building into a place where people actually enjoy coming to work because you’ve built a sense of community and responsiveness.
And if your building truly can’t compete and is hemorrhaging tenants, it might be time to evaluate a sale or redevelopment. Many older Class C properties eventually reach a crossroads where they’re either upgraded or repurposed. In the meantime, run your Class C building as efficiently and attentively as possible – this will keep current tenants on board and maintain your reputation as a responsible landlord, which is crucial if you decide to reposition the asset later.
By now, you can see how each building class sets a different stage for tenant experience. To put it simply: Class A tenants expect a premium experience, Class B tenants want a practical, good-value experience, and Class C tenants are focused on essentials at a low cost. These expectations come from the physical attributes of the buildings and the typical services provided. If you manage a Class A tower, your tenants likely enjoy perks like fast Wi-Fi, beautiful common areas, and maybe even community events or app-based conveniences.
They’ll feel proud to invite clients to the office because the building makes a strong impression. In contrast, tenants in a Class B building won’t be wowed by the space itself, but they will appreciate it if it's clean, well-lit, and hassle-free. Their experience is positive when the elevators work, the bathrooms are clean, and there’s a friendly management team that addresses their questions.
For Class C tenants, the bar might seem lower in terms of frills, but in some ways their experience stakes are higher on basic needs: if the heat fails on a winter day or the only elevator is out of service, it severely impacts them because there aren’t alternative perks to make up for it. So they judge their experience largely by how quickly you can resolve such problems and how safe and comfortable the basics feel. Regardless of class, every tenant wants to feel respected and taken care of. Even in a budget building, a tenant will have a good experience if you are responsive and the space meets their day-to-day needs.
From an owner or property manager’s perspective, understanding these dynamics is crucial. Happy tenants lead to a healthy property business. When tenant experience is positive, you benefit from higher retention rates, meaning more renewals and fewer costly vacancies. A satisfied tenant in a Class B or C building is less likely to jump ship for a fancier address if they feel your building already gives them what they need (and with less expense or hassle).
Conversely, if tenants are unhappy (say a Class B building feels drab and ignored, or a Class A building’s fancy amenities don’t actually work right) you risk losing them to competitors. In today’s market, many companies are rethinking their office space needs, and they will cut space or move if employees aren’t happy with the environment.
In fact, a lot of landlords with older buildings have found themselves having to offer hefty rent discounts or free rent periods just to lure or keep tenants. Recent industry reports show that lease concessions (like free rent or extra tenant improvement allowances) now account for about 26% of U.S. office lease terms, as landlords try to make up for less-desirable buildings. This is a significant chunk of revenue being given away.
Focusing on tenant experience can be a smarter way to compete than simply slashing rent. If you can make your building more desirable to tenants through improvements and service, you won’t need to rely as much on undercutting the price or giving concessions to fill space. In other words, investing in the tenant experience is investing in your bottom line. It’s not just a feel-good idea, it’s backed by business logic.
Satisfied tenants are more likely to renew their leases, which directly leads to lower vacancy and stable income. They may even spread the word, giving your building a better reputation in the market. Over time, a property known for keeping its occupants happy and productive can enhance its market value. People want to be in buildings where they feel their needs are understood and met. By delivering that, you set your property up for long-term success, regardless of whether it’s Class A, B, or C.
No matter your building’s class, you have the power to improve your tenants’ experience. You don’t need a brand-new skyscraper or a limitless budget to make a positive impact. Here are some actionable steps you can take that will help you support your tenants and make your property more appealing:
By implementing these steps, you’ll demonstrate to your tenants that you genuinely care about their experience. Many of these actions are not costly – they require attentiveness and consistency more than a big budget. But the payoff can be significant. You may see increased tenant satisfaction in the form of friendly emails or thank-yous, fewer complaints, and ultimately higher renewal rates. In a competitive market, these factors are gold.
A building where tenants feel happy and heard is one that will stay occupied and profitable. As you take these steps, remember to track what works best – every building and tenant mix is a little different, so listen to your people and refine your approach as needed. Improving tenant experience is an ongoing effort, but it’s one that gets easier when you have a positive relationship with your tenants.
Understanding Class A, B, and C office building distinctions gives you a strategic advantage as a property owner or manager. It is not just jargon. It is a framework that helps you see where your building stands today and how you can improve tomorrow. Each class comes with its own challenges and expectations, but none of them lock you into a fixed outcome. A Class A building can fall short if the experience is neglected, and a Class C property can retain loyal tenants if it is cared for. The common thread across all classes is tenant experience, which means making sure people feel comfortable, supported, and connected in your building.
The good news is you do not need to rely on costly renovations or years of construction to deliver that experience. With Cove, you can enhance your building by centralizing communication, simplifying access, and creating a more connected tenant community without pouring millions into new lobbies or amenities. Whether it is rolling out mobile credentials, streamlining event promotion, or keeping tenants informed with real-time updates, Cove equips you with the tools to elevate day-to-day operations right away. These are changes that directly impact how tenants feel about your building, and they are upgrades you can implement quickly.
As an owner or property management leader, you already juggle budgets, maintenance, and leasing. By adopting Cove, you give yourself a way to stand out in any class of building. You show tenants that you are investing in their experience today, not just waiting for the next capital project. That approach strengthens retention, reduces vacancies, and positions your property as a place where tenants want to be. Whether you manage a flagship Class A office building in New York City or a modest Class C office space on the edge of town, the principle is the same. With Cove, you can transform tenant experience from the inside out in a faster, smarter, and more cost-effective way.