Especially in downtown areas of cities like Minneapolis, office space tends to be desirable. of course, that is only the case if the space you provide, sell, or lease out adheres to the standards that occupants expect when they move in.
To streamline that process, and align expectations from both potential tenants and landlords, the International Building Owners and Managers Association (BOMA) has developed a set of classifications that describe and standardize the type of office space available. Where you fall within that classification can have a tangible impact on the construction process itself, and the return on investment you get from your construction project.
What Falls Under Class B Office Space?
For the purposes of this post, let’s focus on Class B office space. According to BOMA, this classification includes
Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area. Building finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same price.
This falls directly between Class A office space, which orients itself along high-end tenant demands, and Class C office space, which comprises functional areas for low rent. In other words, in terms of available space, it’s the perfect middle ground.
Why Should You Build Class B Office Space?
Simply examining the classifications set by BOMA, it might seem obvious to focus on class A projects above all else. However, that undercuts the fact that most available office space falls within the Class B range, with average amenities and costs compared to its surroundings.
The result is simply demand. A wide variety of companies and industries are constantly in need of offices, and not all of them will be able to afford the high-end finishes and amenities set by the highest of the three standards. Similarly, your construction budget may not account for the high initial costs that this type of high-end construction entails.
In addition, Class B office space often designates existing buildings that can be renovated. When looking for construction, it might make sense to aim for Class B status and gradually upgrade to Class A overtime. In that scenario, the long-term return on investment for your construction effort and budget can quickly become significant.
Staying Within the Classification With the Right Partner
Ultimately, the standards set by BOMA are voluntary. They act not as binding rules for construction companies around the globe, but guiding principles that enhance consistency. When marketing your new constructed or renovated office space as Class B, potential tenants will know what to expect before setting foot in the building. The result is a smoother process that eliminates noise and increases the likelihood of a match between constructing entity, tenant, and landlord.
To get to that point, of course, you need a partner that can get your construction project to stay within the right classification. Without one, you risk paying too much in aiming to (but failing to achieve) a higher classification, or coming in under expectations and minimizing your potential return on investment.
Correct construction also includes a survey of your surroundings to see how your potential building and space fits in with other opportunities. For help in the entire process, from planning to construction, contact us. Our experience in the Minneapolis area will be the perfect fit for your office construction needs.
