Office tenants in the recent commercial real estate market are getting good deals that help drive the demand for Class A office space. According to CoStar Group’s senior real estate strategist, Chris Macke, Class A office space are getting the “lion’s share” for the increasing demand in the commercial real estate market is mostly driven by office tenants.
Macke also said that most Class A office space in the market today is getting the same rates as the Class B offices. About 88 percent of the office demands are from Class A office space renters.
According to Macke and some other commercial experts on the weekend radio show called “The Commercial Real Estate Show”, a nationally focused radio, which is hosted by Michael Bull and aired in Atlanta, the commercial real estate market across the United States in 2010 had about 30 million square feet net absorption.
The overall message in the program from guest real estate professionals was a positive one.
The categorization office buildings as to A, B, or C usually relates to the buildings’ design and functionality, the year of completion and the location of the building.
Building classification also differs a little from city to city, but categorization follows a standard pattern: Class A office space are modernly constructed with state- of- the- art functionality, which are located in sought- after locations and demands highest rents because of its high- end amenities and facilities.
During the fourth quarter of 2010, about 21 million square feet of positive absorption of Class A office space are recorded, according to the speakers.