Office Space Classifications in the Baton Rouge Market
In the office market, buildings are given classifications or rankings: Class A, B, or C. These rankings are not measured by any definitive formula or criteria. Instead, rankings are considered relatively within the context of their market. Looking at the Baton Rouge market, office spaces can be categorized broadly into Class A, Class B/C, and Condos.
The Baton Rouge Market
Comprehensively, there are over 8 million square feet of office space in the Greater Baton Rouge Area. With over 53% of the market, Class A spaces make up over 4 million square feet. Classes B and C total more than 2 million square feet.
Defining Classes
Some of the quality factors taken into account when classifying office spaces include:
Location and access
Building amenities and finishes
Market perception
Rental rates and tenant types
Amenities, or services provided within a building, are key in ranking considerations. Amenities may include a maintained lobby, often with a reception area, mail and copy services, food service, professional management and upkeep, and lifestyle additions.
“Office classifications allow brokers and tenants to narrow their search focus. ”
Class A
II City Plaza
Relatively new to the market - typically less than 20 years old
Visually appealing and reflective of current trends
Multi-story and multi-tenant
High quality infrastructure and amenities
Large, shared lobby spaces
Best location and accessibility
Professional management
White-collar tenants, such as law firms and financial institutions
Above-average rental rates for the market
In the Baton Rouge market, buildings may be downgraded from Class A to Class B after approximately 20 years, or once wear-and-tear becomes apparent.
Baton Rouge consists of predominantly Class A offices. These spaces tend to be located along the Essen/Bluebonnet corridor, downtown, and in the Acadian/College area.
Available now, II City Plaza is a prime example of the premier, Class A space in downtown Baton Rouge.
Class B/C
Class B/C buildings may have the following attributes:
Older buildings, usually 20+ years old
Average to adequate amenities and infrastructure, with some updating and improvements needed
Some have professional management
Wide range of tenants
Smaller buildings and buildings with apparent wear-and-tear
Average- to below-average rental rates for the market
From an investment perspective, Class B properties can add great portfolio value. Through façade repairs, common area upgrades, and other improvements, some B buildings may be upgraded to A status.
Class B and C spaces are spread around the city, with high concentrations along Florida Blvd and Airline Hwy, Sherwood Forest, and the Essen/Bluebonnet corridor.
Quail Oaks Atrium
An excellent example of Class B office space in Baton Rouge now is the Quail Oaks Atrium.
Garden Office
Making up about 20% of offices in the Baton Rouge market, garden office buildings are the strongest sector. Very prevalent the metro area because of its suburban sprawl, garden office condos are generally:
Single story, residential-style construction
Convenient surface parking
Subdivided into individual tenant suites, typically 1,500 to 5,000 square feet
Highland Business Park
Garden offices can be found in abundance all along Jefferson Hwy, Essen and Bluebonnet, and the Sherwood Forest area.
Garden style offices are available now in Highland Business Park, on Petroleum Dr.
Interested in leasing or purchasing office space in the Greater Baton Rouge area?
Look no further!
By Sarah Grobety
Marketing Director, Momentum Commercial Real Estate
