Rent difference between Class A and Class B office.
I know there are a ton of factors, but I’m curious if there’s any ballpark formula/estimate to determine the rent difference between Class A and Class B office. 10%, 25%, 50%?
[{"id": "f3vnonk", "text": "There is no formula for a couple reasons:\n\n1) It's highly market specific, so some markets might be a smaller gap than others.\n\n2) The very definitions of whats a Class A vs B building are all over the map. There are tons of Class B buildings out there that call themselves Class A. Or maybe they have all the same amenities, but are older / outdated in style. This makes averages for each type unreliable figures. Furthermore, the location can be as important or more than the Class of the building, which further skews results.", "replies": [{"id": "f3vt29s", "text": "Thanks!", "replies": [], "depth": 2}, {"id": "f3w9n7l", "text": "&gt; There are tons of **brokers selling or renting** Class B buildings out there that call themselves Class A.\n\nFTFY.", "replies": [{"id": "f3wbhvi", "text": "...and building owners. Also there are no clear standards for what makes a building A or B (or B or C for that matter). Also sometimes there are star levels or other ratings too. Yes, there are a few buildings that have every amenity and in the best location, are brand new and are clearly Class A. But if you go down far enough the line between the worst class A and best class B becomes so blurry it's meaningless.", "replies": [{"id": "f3wc5zg", "text": "I understand that but Class A buildings should really stand out against class B buildings in a given market. Especially one that has many properties trading in a given time.\n\nB &amp; C are much blurrier lol", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "f3w9qe4", "text": "Use comps from the local market, there is no ballpark. Maybe the difference between an A &amp; B is very close in your market and the rents will reflect that\n\nMaybe it's huge.", "replies": [], "depth": 1}, {"id": "f3wnvii", "text": "Take a specific CBD in your area and figure it out. That would be a good stat to have when discussing with clients.", "replies": [], "depth": 1}]