Office grades explained: what A, B+ and B actually mean

Office classification exists so that market participants speak a common language: tenants understand what they get for the rate, and owners know what their building is compared against. No law fixes the grades, so listings often overstate them. The practical answer is to check the building against specific parameters rather than the letter in the description.

What actually defines the grade

• Location and transport access, including parking and vehicle access for tenants.
• Layout efficiency: the ratio of lettable to gross area, column grid and floor plate depth.
• Engineering: air conditioning, ventilation, backup power and electrical capacity per square metre.
• Quality of common areas: lobby, lifts, washrooms and how well finishes are maintained.
• Management: a professional management company, maintenance procedures and response times.

Note the last point. A class A building maintained on a residual basis loses the quality of its common areas and engineering systems within three or four years — and its rental rate along with them. Management affects the grade no less than the original build quality.

What tenants should look for

Beyond the headline rate, calculate the total cost of occupancy: service charges, utilities, parking, fit-out cost and its amortisation over the lease term. Check the electrical capacity allocated to your unit and the ventilation operating schedule — reworking these after move-in costs more than the difference in rate.

What owners should look for

A grade is a position within a competitive set. Before raising rates, compare the asset with its nearest competitors on the parameters above and find a gap that can be closed cheaply: cleaning standards, lobby lighting, wayfinding, request handling. It is often these items, rather than capital works, that deliver the next uplift in rate.