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Home Insights The difference between Grade A and Grade B office spaces
In the following article, discover the difference between Grade A and Grade B office spaces.
Grade A office spaces represent the highest standard in commercial property. These spaces are renowned for their superior quality, prime location and modern amenities, making them the top choice for businesses seeking prestige and functionality. Designed to meet the needs of high profile tenants, Grade A offices are often located in central business districts or other highly desirable areas, offering excellent connectivity. However, there is a notable shortage of Grade A buildings. In London, there is a vacancy rate of only 5.4% of all Grade A offices, highlighting the strong demand and limited availability.
The defining characteristics of Grade A offices set them apart from lower grade options. These spaces are constructed with premium materials, showcasing contemporary designs and exceptional architectural standards. Advanced amenities such as high speed elevators, state of the art HVAC systems and smart technology integrations are common. Grade A buildings prioritise sustainability, with many earning environmental certifications like BREEAM, LEED, SKA or NABERS.
Grade B office spaces offer functional and cost effective alternatives to Grade A offices. While they may lack some of the high end finishes and brand new amenities, these spaces can be well maintained and provide essential features that cater to a wide range of business needs. Grade B offices are typically located in secondary business areas or suburban locations, making them an attractive option for budget conscious businesses. However, there is still a large presence of Grade B spaces in city centres.
Grade B offices are characterised by their practical designs and standard construction quality. These buildings are often older than Grade A spaces and are typically outdated in terms of design and technology. They often lack the 'wow' factor, featuring smaller floor plates, limited amenities and no environmental certifications. This means they may fall short in meeting the expectations of businesses seeking modern, high performance workspaces.
Transforming a Grade B office space into Grade A requires a carefully planned fit out that improves infrastructure, aesthetics and functionality to meet higher standards. Although the location remains unchanged, these upgrades can enhance the space to Grade A standards. Upgrading the building’s infrastructure is a critical first step, involving modernising HVAC systems, enhancing electrical and IT capabilities and replacing outdated lighting with energy efficient options like LED. Interior finishes significantly impact the overall design, with premium materials such as hardwood or polished concrete flooring, textured wallpapers or acoustic panels for walls and bespoke joinery adding a sophisticated touch.
Optimising the layout is crucial for creating a functional and modern workspace. This often involves removing internal walls to open up spaces, connecting floors with internal staircases for better flow and upgrading key infrastructure such as ceilings, floors, toilets and lifts. A comprehensive Cat A or Cat B fit out includes modernising technology systems to meet current demands, ensuring the space is both efficient and future proof. Additionally, premium amenities like welcoming reception areas, cafes and wellness facilities, including showers and bike storage, enhance the overall experience.
London
Sustainability plays a key role in achieving Grade A status, with many refurbishments targeting certifications like BREEAM, LEED, SKA and NABERS. Compliance with MEES regulations is also crucial, ensuring that buildings meet or exceed minimum energy efficiency standards to remain legally lettable. Incorporating energy efficient systems, renewable energy sources and biophilic design elements further contributes to creating a more environmentally friendly office, aligning with modern expectations for sustainability and regulatory compliance.
Finally, compliance with Grade A criteria, including accessibility, fire safety and high speed internet capabilities, is vital to meeting modern tenant expectations. By addressing these elements holistically, a Grade B space can be transformed into a Grade A environment.
Here are two examples showcasing office spaces that have been successfully upgraded to Grade A standards. One located in London and the other in Manchester. The thoughtful design and high quality fit outs have transformed these spaces into modern workplaces that are attractive to today's discerning tenants.
Aviva- 40 Spring Gardens, Manchester
Office grading is an established classification system in the commercial property industry that evaluates spaces based on several measurable criteria, including the quality of construction materials, the age and upkeep of the building, the presence of amenities, the integration of technology and the location’s desirability. By standardising these classifications, businesses, property managers and property professionals can efficiently compare and select office spaces that best align with their needs and goals.
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