Insight Hub

Class A office buildings are high-quality, modern facilities located in attractive locations, with numerous amenities and prestigious companies as tenants. These buildings are well-maintained, offer advanced features, and are managed by professional teams. Class B office buildings, on the other hand, are typically located in less prominent areas, have slightly older designs, and offer fewer amenities. The classification of buildings may vary depending on the region and market, but these general differences help understand the basic distinctions between Class A and Class B office buildings.

Indexation refers to the practice of adjusting the rent of office space in a commercial building based on a specific index, such as the Consumer Price Index, to account for inflation or market changes. This allows the property owner to maintain the value of the lease over time and ensures that rental income keeps pace with the cost of living or market trends.

The service charge refers to the fee that tenants pay, which covers the costs of maintaining the common areas of the building. These services can include cleaning, security, maintenance, repairs, utilities, and other shared amenities. The service charge is typically calculated based on the size of the leased space or as a percentage of the total building costs, and it is often specified in the lease agreement.