The differences between Grade A and Grade B Buildings

Whether you have been hunting for a Makati office for sale or you are simply looking to expand your knowledge on the commercial property industry, you may have come across the terms 'Grade A' or 'Grade B' at some point. To put it simply, these terms function as building classifications. Based on a number of factors, buildings are graded and assigned into a specific category. Some of these factors include the building's age, location, maintenance level, lease length, and in some cases, its landlord credibility, and rated tenants. Here are the differences between Grade A and Grade B buildings:

1. Grade A buildings are top of the line. They are often the location of the most sought-after office spaces or residential areas. Grade A buildings are typically brand new or if not, have gone through some type of redevelopment process. Major cities such as Makati, Ortigas and Taguig feature a slew of Grade A buildings as there is a high demand for them in the aforementioned prime locations. Some of the most common occupants of Grade A buildings include but are not limited to: banking institutions, law firms, investment firms, and the like as they need to showcase or portray an image of financial success. In Grade A buildings, there is no shortage of brass fixtures, glass fixtures, and impressive lobbies.
2. Grade B buildings fall somewhat below the rank of Grade A buildings. In comparison to Grade A buildings, grade B buildings are secondary when it comes to their location, maintenance and facilities. Most companies make their home in Grade B buildings due to more cost-effective rent rates and higher supply and availability. While the materials used to construct Grade B buildings may not be as high quality as those used in Grade A buildings, they remain functional. Grade B buildings are also well-maintained and provide adequate facilities.

To wrap things up, Grade A buildings are the cream of the crop in the world of commercial property due to their high quality materials and impressive appearance inside and out. On the other hand, Grade B buildings are equally functional though they may not be as striking at first glance.