Commercial Real Estate

If you are planning to invest in commercial real estate, it is essential to know the different types of buildings available for purchase.

Class C buildings are the oldest and require substantial renovations. They usually have limited parking space and are situated in less desirable areas. From an architectural standpoint, these buildings are unattractive and have outdated infrastructure and technology.

Class D buildings are made of combustible materials like closely spaced wood or steel studs and may have walls covered in wood, shingles, stucco, brick, or stone veneer.

Class A buildings are the newest and most modern buildings in the area, with state-of-the-art facilities. They are the most visually appealing and typically command the highest prices.

Class B buildings are slightly older but still have good-quality management and tenants. These buildings are often targeted by value-added investors, as they can be restored to their Class A glory through renovations such as facades and common area improvements.

By Anita Johnson-Brown

This information was obtained via research, /www.vts.com/ and LoopNet.

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