Strategies for the B-Class

How to Be a B-Class Building in an A-Class Market

Demand for office space is not solely driven by financial reasons.

How to Be a B-Class Building in an A-Class Market - thumbnailWith most major Canadian cities experiencing an office boom, some with millions of AAA class office space slated to hit the market over the next few years, this report discusses how existing, lower quality buildings can retain tenants, keep vacancy rates at a minimum, and increase their competitive advantage in a growing market.

Through case-studies, this report discusses strategies such as:

  • Specialization
  • Capital Injection
  • Repurpose
  • Reposition

Key Highlights of the report:

  • Repositioning B-Class office space is most commonly done through two strategies: Capital Injection and Specialization. Specialization is a risk manoeuver as it designates a building to a specific industry or sector, but may be a suitable strategy for attracting tenants that require specific infrastructure and have a difficult time finding appropriate office space.
  • When a market experiences a dramatic increase in new high-grade office supply, landlords of lower-grade buildings tend to experience higher turnover of tenants. Repurposing a building can be an opportunity to stay competitive in the marketplace. This requires an understanding of what asset type is in demand in the market, but has been a viable and financially attractive solution for many landlords over the years.

> Download full report.

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