Grade A office space is a term used in the commercial property sector to describe top-tier office facilities. Grade A offices will typically be in a prime business location, feature high-quality contemporary design, and are equipped with cutting-edge facilities and amenities.

In other words, they offer an unparallelled, often luxurious, office experience. But why are they called Grade A offices, and what other grades of office are there? We’ll explain everything you need to know about Grade A offices and the system they fit into in this post.

Office space grading explained

The office grading system is a form of classification that groups office spaces into three tiers: Grade A, Grade B, and Grade C. The grade an office receives is primarily based on its quality, location, and amenities, but there’s no formal body providing office grading regulation.

Instead, the system is supported by general consensus in the property industry on what constitutes Grade A, B, or C office space. These grades help agents, brokers, and businesses seeking office space get an ‘at-a-glance’ understanding of an office’s quality and price bracket. 

Key elements that affect what grade an office is given include its:

• Location
• Facilities
• Amenities
• Building age
• Architectural design
• Interior design
• State of repair
• Security

Difference between office grades

Although not formally defined, there are some clear, widely-agreed upon guidelines that describe what makes an office Grade A, B, or C. 

Grade A

Grade A office spaces are the most prestigious and attractive, and tend to have above average rental prices. They feature contemporary design, high-quality finishes, state-of-the-art facilities, exceptional accessibility, and a broad range of on-site amenities.

Grade B

Grade B offices are the middle-tier, offering a quality office experience and good location with a lower price-tag than Grade A. While they might not feature the outstanding design and functionality of Grade A offices, they’re generally well-maintained and offer a range of facilities.

Grade C

Grade C office spaces are typically located in older buildings with lower maintenance standards. They don’t tend to be particularly high quality in terms of design or facilities, and may not be in the most central locations, but they are the cheapest option.

How office grade affects price

Given that the office grading system is a marker of quality in terms of aesthetics, location, and functionality, it has a significant impact on the price of offices. Grade A offices are the most expensive, with Grade B and Grade C offices commanding lower rental prices.

Oktra used insights from local commercial property experts to compare average Grade A and Grade B office prices in key boroughs across London, which highlights how the two different quality levels are reflected in office costs:

Borough	Grade A rent (per sqft)	Grade B rent (per sqft)
City of London	£75 – £82.50	£67.50 – £75
Covent Garden	£80 – £87.50	£57.50 – £75
Shoreditch & Old Street	£70 – £77.50	£55 – £70
London Bridge & Southbank	£65 – £77.50	£55 – £60
King’s Cross & Euston	£77.50 – £85	£55 – £70
Whitechapel & Aldgate	£50 – £60	£35 – £45

While these cost estimates aren’t indicative of every office in each grade, they clearly show that Grade A offices will almost always have a higher price tag than Grade B.

Why are Grade A offices so popular?

Despite their higher costs, Grade A offices are in high demand in London, according to research by Colliers. This popularity is because Grade A offices offer a range of benefits that attract companies looking to get the most from their office space.

They’re generally well-located in key business hubs like the City of London or King’s Cross, which means they benefit from both excellent transport connections and abundant local amenities. 

The high-quality office design Grade A offices tend to feature means they provide a great environment for businesses to thrive, with facilities like meeting rooms, phone booths, and kitchens all included on-site and extra amenities like gyms, showers, and cafes often available.

And they’re also prestigious, something which is an appealing prospect to businesses that are looking for an office space that boosts their reputation and impresses customers, clients, or partners. 

What office space grade is right for your business?

Grade A, Grade B, and Grade C offices all offer different benefits and drawbacks, so there’s no simple answer to which one is best. Choosing the right grade office space for your business really depends on what your priorities are.

If you’re looking for the most complete office available, with excellent design, accessibility, and facilities, then a Grade A office will appeal. But you’re likely to pay above-average rental costs per sqft.

If you’re keen to cut costs and need a simple office space that can meet your basic needs, with no real concern for an ideal location or outstanding design, a Grade C office could work.

And if you sit somewhere in the middle of those two groups, looking to strike a balance between cost and quality, a Grade B office space might make most sense. 

How to find the right office space

Finding the right office space comes down to more than just thinking about office grades. The first step you need to take is to figure out what you actually need from your office space, which you can do by creating a proper workplace strategy.

Then, you can start thinking about the right office size for your business, what amenities are important to you, and what kind of location will work best. These will all affect whether your ideal office is likely to be Grade A, B, or C.

Get started by taking a look at our collection of serviced offices across London and the UK, spanning Grade A and B. They’re all designed to offer an excellent office experience, with flexible contracts, lots of amenities, and boutique design. 

And if you want to speak to one of our experts about what kind of office will be best for your business, get in touch with us. 

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