The commercial real estate market offers various choices for business owners searching for flexible office space, with Grade A and Grade B offices as prominent options. Each Grade has distinct attributes and advantages, allowing you to find the best property for your business.
While “Grade A” and “Grade B” are familiar in business, their subtle differences are often unknown. Business owners must know how to distinguish these buildings to make well-informed decisions aligning with their needs.
Nearly all office buildings start as Grade A. The passing of time is one differentiator of spaces; the ageing of buildings automatically downgrades a building to Grade B.
This blog explores Grade A vs Grade B office space and their differences, helping you identify the most suitable option that caters to your requirements and budget, facilitating this decision-making process.
What is Office Grading?
This industry-standard method categorises and assesses diverse office spaces, considering their quality, location, and amenities.
Office grading is a systematic approach invaluable for business owners, offering a standardised way to compare office spaces and their features.
By understanding office grading, you gain an insight into the crucial factors influencing your workspace choice, enabling well-informed decisions that align with your business requirements.
Several pivotal elements contribute to the grading of office spaces. These encompass the location within a city, the age and condition of the building, the quality of fittings and finishes, and the availability of essential services and amenities.
What is a Grade A office space?
Grade A office spaces offer prestige and professionalism that can significantly enhance your company’s standing. Typically, these spaces have been constructed, redeveloped or substantially refurbished in the last five years.
Strategically located in vibrant urban centres such as the office space in Canary Wharf, Grade A offices have unparalleled accessibility, providing your business with vibrant opportunities and networking possibilities.
Distinguished by contemporary architecture, these spaces feature impressive entryways, stylish interiors, and cutting-edge finishes, leaving a lasting impression on clients and partners alike. You can find features such as this at office spaces in Mayfair.
Grade A offices are usually flooded with natural light, creating a dynamic and inviting ambience for your workforce to prioritise productivity and well-being. Their typically modern design allows for flexible workspace arrangements, accommodating growth, collaborative areas, and diverse functional zones within your office.
Grade A spaces are also furnished with premium amenities tailored to various business needs, such as high-speed internet connectivity or onsite catering facilities.
Additionally, these spaces are often conveniently linked to public transportation hubs, easing the commute for your employees and clients while reducing logistical challenges.
The latest generation of Grade A office spaces integrates sustainable practices, embracing energy-efficient systems and environmentally conscious initiatives that align with modern business values.
Understanding these distinguishing features enables business owners to make informed decisions, ensuring their choice aligns with their operational needs and financial considerations.
Grade A Office Space in London Pricing
| Area | Grade A Leasehold Office (average) | Grade A Serviced Office (average) | Grade A Managed Office (average) |
|---|---|---|---|
| Aldgate | £57.50 | £600 | £140 |
| Bank | £80 | £925 | £195 |
| Camden | £61.50 | £575 | £130 |
| Clerkenwell | £100 | £850 | £220 |
| Covent Garden | £90 | £850 | £225 |
| Euston | £85 | £1,200 | £200 |
| Farringdon | £100 | £850 | £220 |
| King's Cross | £85 | £1,200 | £200 |
| Knightsbridge | £95 | £1,200 | £180 |
| Mayfair | £150 | £1,150 | £360 |
| Paddington | £90 | £900 | £160 |
| Shoreditch | £75 | £850 | £165 |
| Soho | £105 | £1,075 | £240 |
| Victoria | £85 | £1,075 | £185 |
What is a Grade B office space?
As mentioned, buildings over five years old are typically considered Grade B office spaces and often have previous tenants. They represent diverse quality options and cater to many businesses, from startups to established enterprises, offering flexibility and scalability as your company evolves.
Grade B offices are situated both in core prime locations and more affordable areas in London, allowing businesses to choose spaces aligning with their operational needs.
Although they might offer slightly fewer premium amenities, some Grade B spaces present a budget-friendly alternative, making them appealing to businesses seeking a balance between quality and cost. Buildings older than ten years can also still rival newer builds.
While not as central, the accessibility and convenience of Grade B office locations remain significant considerations. Businesses evaluating Grade B spaces should assess these locations concerning their target audience, clients, and employees, ensuring accessibility for all stakeholders.
Opting for a Grade B office can yield financial advantages, freeing up the budget for vital strategic investments in areas such as marketing, talent acquisition, or product development.
By understanding the unique features of Grade B spaces, business owners can make informed decisions that meet their operational needs, budget constraints, and long-term growth strategies.
Grade B London Office Space Pricing
| Area | Grade B Leasehold (average) | Grade B Serviced Office (average) | Grade B Managed Office (average) |
|---|---|---|---|
| Aldgate | £42.50 | £425 | £100 |
| Bank | £55 | £475 | £145 |
| Camden | £47.50 | £450 | £115 |
| Clerkenwell | £70 | £550 | £120 |
| Covent Garden | £70 | £550 | £150 |
| Euston | £65 | £525 | £130 |
| Farringdon | £70 | £550 | £120 |
| King's Cross | £65 | £525 | £130 |
| Knightsbridge | £57.50 | £625 | £140 |
| Mayfair | £85 | £700 | £170 |
| Paddington | £55 | £600 | £125 |
| Shoreditch | £60 | £400 | £80 |
| Soho | £75 | £600 | £150 |
| Victoria | £67.50 | £525 | £130 |
What Influences the Grade of an Office Building?
The grading of an office building is a nuanced process influenced by several factors, each shaping the distinction between Grade A and Grade B spaces.
1. Office Building Age
A fundamental factor is Grade A spaces are typically newly constructed, renovated, or refurbished within the last five years.
Grade B spaces encompass buildings older than this timeframe, potentially having had previous tenants.
2. Location of Building
The strategic placement within urban centres distinguishes Grade A offices, offering prime networking opportunities.
Grade B spaces can be found both in central areas and further afield, providing businesses with diverse location choices.
3. Parking Options
Grade A spaces often provide ample parking facilities, enhancing convenience for employees and clients.
In contrast, Grade B spaces may vary in parking availability.
4. Security of Building
Security features play a crucial role in grading. Grade A spaces typically have advanced security systems, ensuring a safe environment.
Grade B spaces may have varying security measures, impacting their grade designation.
5. Access
Accessibility is significant in terms of public transportation and general connectivity. Grade A offices are often well-connected, enhancing convenience for employees and clients.
On the other hand, Grade B spaces offer varying access levels, which influences their grade classification.
Knowing the distinctions between Grade A and Grade B buildings is essential in finding the best office space for your business. With this information, you can align your decisions with your company’s requirements and budget.
Here at DeVono, we specialise in guiding business owners like you to find the perfect Grade A or Grade B office. Contact us today and see how we can help you find office space in London that meets all your business needs.
