Are you in the market for new office space in Austin and wondering what all the Class A, Class B, Class C talk is about?
The commercial real estate jargon can be confusing—especially, if it’s your first time looking for space for your new business venture so we thought we’d break it down for you in easy to understand language.
When looking for what’s called “traditional” office space (think office buildings like the Frost Bank building downtown), the offices are classified into three major categories: Class A, B, and C.
If you are a salon or boutique, there’s a chance the type of space that might best fit your needs is considered retail space. If your business needs lots of storage or handles shipping and receiving, then warehouse space is probably what you’re after. While we can help you find those types of spaces too, this blog post is going to focus on the different types of office classes.
Here’s the skinny and some photos to help you better understand the different classes:
Class A – this class of space is the crème de la crème. Fancy lobbies, well-manicured landscaping, and prime locations are all part of the package when looking at Class A buildings. Most buildings are fairly new (built within the last five years) or have undergone a recent renovation to keep up with the new properties being built. A large majority of Class A office space is located in the Downtown Austin area and has what most businesses would refer to as a market presence. The average lease rates in Austin for Class A space are about $28 per square foot.
Class B – this class of space is often considered for businesses that want a nice office with a good location but don’t need all of the extras, like fancy lobbies. You can find some great options of Class B offices all over Austin and sometimes pay significantly less than you’d pay for Class A office space. Definitely consider this class of space if you don’t need a brand new office with lots of amenities. The average lease rates in Austin for Class B space are about $21 per square foot.
Class C – this class of space is great for businesses that are just starting out and are on a budget. There might be less parking or the exterior of the building might not have been renovated recently like some Class B options, however, the buildings are functional and work well for a lot of businesses. The average lease rates in Austin for Class C space are about $18-19 per square foot.
We hope this blog post helps you better understand the different types of office space options for your business. If you have additional questions about leasing office space in Austin, give us a call. We’re here to help you find the best location and office for your business.