Bringing Class A experiences to Class B buildings - by Kevin Paul and Joel Richardson

 

 

The world of office real estate has been something of a rollercoaster over the last five years. The COVID-19 pandemic forced companies across the country to switch to a “work from home” model that left office space empty and demand low. A 2024 report from the Brookings Institute found that, between 2019 and 2024, available office inventory in the United States increased by approximately 250 million s/f, while demand for this office space decreased by 160 million s/f.

Though few experts anticipate that office occupancy will return to its pre-pandemic heights, more and more businesses have returned to the office in recent years, either on a full-time or hybrid basis. Owners of high-end, Class A office buildings have been able to successfully entice companies back into the office, but mid-range Class B buildings have seen less success. However, building owners can take a cue from some of the amenities and features offered by Class A buildings to create spaces that provide a high-end office experience without breaking the bank.

Class A vs. Class B

Office space classifications are a convenient way of categorizing available commercial real estate. An office building’s class, from Class C all the way up to Class A, is determined by a wide variety of factors, including the location of the building, the uniqueness of its design, the quality of building materials used, and the availability of amenities.

Class A buildings tend to be newer, comprising higher-quality building materials and featuring modern amenities such as high-speed Internet and advanced climate control systems. Class A buildings also offer top-tier amenities, including valet parking, on-site fitness facilities, and dedicated security. Because Class A buildings are newer, offer top-of-the-line amenities, and are often situated in expensive central business districts, they also demand the highest rents and enjoy the highest occupancy rates.

Class B office buildings tend to be older and offer fewer bells and whistles than their Class A counterparts. They do, however, provide workplace comforts for tenants at more affordable rental cost than Class A units. Class B buildings are most commonly found in secondary business districts and other suburban industrial areas, which helps keep property costs low while still providing quality office spaces with respectable amenities. 

Class A Amenities
While there are certain elements of a Class B building that cannot be improved, such as the age of the structure or its location, property owners can enhance the appeal of the building by implementing amenities commonly associated with Class A properties.

These amenities include:
• Fitness and wellness spaces. It is common for Class A buildings to feature a convenient shared fitness space that allows tenants to conveniently exercise at their place of employment, potentially at a discounted rate, rather than at separate gym facilities that can cost anywhere from $20 per month to upwards of $200 per month for luxury gyms. Fitness spaces should be comprehensive, with a diverse range of equipment available for use; a fitness room with only a few cardio machines and a barbell station is one that will go entirely unused. Furthermore, these gyms should also serve as wellness spaces with room for mindfulness activities, such as meditation and yoga, that promote a healthy psyche in addition to physical fitness. Other wellness-minded elements, such as outdoor walking trails around the property, encourage engagement with nature and improve the property’s curb appeal to passersby.

• Shared communal spaces. Not every business has the staff size to justify an employee lounge, or the meeting frequency to justify a dedicated conference room. For these businesses, reservable multipurpose rooms can provide space for small businesses to conduct meetings, seminars, and other events without forcing tenants to commit to a private conference room or lounge they may only use sparingly. Creating these communal spaces also provides each tenant with more flexibility as to how they utilize their rented space, since they no longer need to earmark square footage for rooms they may need but rarely actually use.

• Cafeteria/dining spaces. Cafeteria and dining spaces provide employees with the opportunity to leave their office environment for lunch without actually leaving the building. Industrially zoned areas can be particularly unfriendly to foot traffic, meaning the closest restaurant or takeout spot is only accessible by car; furthermore, driving to those spots may use up a significant portion of an employee’s allotted break time. For employees who may otherwise skip lunch due to these mitigating factors, in-house dining spaces are a convenient way to enjoy a meal away from their desks. Dining spaces can be customized with unique interior design and furniture choices that reflect the building’s broader style. Rooftop terraces and outdoor patios, meanwhile, offer a chance to take in some fresh air, improving mental wellness.

• Biophilic elements. Biophilic design aims to enhance the physical and mental wellbeing of a space’s occupants through the incorporation of sunlight, plants, natural building materials, fresh air, and other natural elements. Biophilic design elements have been shown to reduce stress and improve mental clarity, focus, cognition, creativity, and productivity. Rooftop garden terraces and hybrid indoor-outdoor spaces offer a respite from the office environment, allowing employees to take in fresh air and the sights and sounds of nature during the workday.

• Sustainable design. Sustainable design can include everything from energy-efficient lighting and HVAC to improved building envelopes and building management systems. These sustainable considerations can help save money on utilities in the long run and improve the value of the building. Sustainable design can also take the form of amenities such as electric vehicle (EV) chargers and solar canopies that provide shade while generating energy for the building and/or EV chargers.

Additional Considerations
When implementing these amenities, making the most of the square footage is paramount. Mechanical rooms and equipment storage spaces can be fully or partially converted into space for any of the aforementioned amenities. Additionally, it may be worth repurposing an unused office unit into amenity space to attract tenants to the remaining available offices.

Updating the building’s common areas and façade, as well as the outside landscaping, is also important for improving curb appeal. A building may have great amenities, but if the outside does not reflect the high-quality office experience offered inside, prospective tenants may not give the building a second thought. 

Working with an experienced team of consultants can help property owners more effectively address issues and improve upon elements of their buildings. A singular, multidisciplinary approach can anticipate architectural, landscape, and engineering needs in advance, which can ultimately shorten timelines, reduce unnecessary spending, and ensure that all of these elements fit together cohesively. There is a potentially great opportunity for property owners to elevate Class B properties, thereby helping provide comfortable, productivity-minded spaces to the many businesses looking to return to the office.

Kevin Paul, AIA, NCARB, LEED AP, CFM | director of private sector architecture and Joel Richardson, P.E. | deputy real estate market director & civil engineering department manager both at H2M architects + engineers, Melville, NY.