Houston Office Leasing Brokers Encourage Clients to Look at Class B Offerings
February 06, 14
Is Class B the new Class A when it comes to office space in Houston? According to a recent article in the Houston Business Journal with a shortage of Class A offerings and a dramatic increase in Class A pricing has some Houston property management firms answering that question with a resounding yes.
The class system for rating office spaces considers factors such as the age of the building and any upgrades that have been made to it, as well as accessibility and location. Class A offices are those that are the most sought-after, in the newest building or most thriving areas. Class B offices are those that are located in less exclusive areas and may not be of as high a quality, though still above average and able to meet standard business requirements.
Currently, the vacancy rate for Class A office space in Houston is at 7.3 percent, and the price per square foot averages at $32 but can go as high as $40 per square foot. However, the vacancy rate for Class B office space is currently at 14.9 percent and rental rates for Class B properties is about 60 percent less, on average, than that of Class A. This makes Class B offerings an attractive option for some tenants who don't wish to pay so high of a rent for the most exclusive area or space.
LandPark Commercial understands that where your office is located and how much you pay are important factors to you in selecting a property to lease. We also understand that sometimes it takes some creative thinking and willingness to explore additional -- and even unexpected -- options in order to get the best property and the best price for your business. Whether Class A or Class B is what you're after, we have the expertise to help you find your new office. For more information, contact us.