Hong Kong is one of the most expensive places on earth when it comes to renting office space, with experts speculation that prices will pick up again in the years to come.
If you’re looking to expand your business and rent office space in Hong Kong, you should first get acquainted with the city’s office grade system and building grade classification. Let’s dive right in.
Office Grade Definitions
According to Hong Kong’s Rating and Valuation Department, office space around the city is divided into three main categories. From the most luxurious to the most basic, the grades are A, B, and C.
Grade A offices offer the most in terms of space, management, parking facilities, and other services. The B grade represents the middle tier. These offices are well-equipped, but they might lack some high-end features, while C grade offices offer only the basics.
Naturally, the grade largely dictates the renting price, with grade A space being the most expensive. On the other hand, grade C offices are rather affordable while the offices in the B grade are somewhere in-between.
In the following sections, we’ll take a closer look at each grade.
Which Elements Determine Office Building Grades?
An office space in the city is divided into three main categories according to the Institution of Rating and Valuation Department of Hong Kong, namely Grade A, Grade B, and Grade C. The grades are based on the quality of the building and its facilities including location, amenities, building age, maintenance status, construction quality, ease of access, rental rates, market, even the quality of HVAC system just to name a few. For instance, Grade A offices are the most luxurious and expensive as they offer the most in terms of space, management, parking facilities, and other services. Grade B are more affordable than Grade A offices and are usually located in prime locations. Finally, Grade C are the most affordable in relative terms and tend to only offer the basics. The following paragraphs will describe them in more detail.
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Grade A office building
If you’re looking for the best aesthetic and functionality, you should go for a grade A office. By definition, plenty of space, flexible layout, and easy customisation are essential elements of the grade A office. Hong Kong offices in this class also offer large floorplates, as well as nicely decorated and furnished lobbies with sizeable circulation areas. Finishes are top-level, as well.
Some examples of Grade A buildings in Hong Kong include China Building in Central, a 63-story building located in the heart of Central. The International Commerce Centre in West Kowloon is considered as Grade A, it is also well known to be the tallest building in Hong Kong with 118 floors. Due to the expensive costs of Grade A buildings, they tend to house the headquarters of many multinational corporations, financial institutions and law firms or conglomerates.
What are the Amenities of a Grade A Building?
Grade A offices also feature a range of impeccable amenities including central air conditioning as part of the standard equipment, on-site building supervision and security, manned reception areas. In some instances, personalized concierge, assistance, curbside valet amenities, fast and reliable Wi-Fi, sheltered parking facilities and exclusive private outdoor or rooftop areas just to name a few. Lift services are divided into delivery and passenger zones. You can expect regular maintenance and reliable operation here.Another thing that sets grade A offices apart from the rest is professional building management that can address all problems quickly and efficiently.While location doesn’t dictate office grade, Hong Kong’s top office space tends to cluster in Central, Admiralty, and Causeway Bay. It is typically populated with large companies that want to secure the finest office space in town for employees. There are plenty of options for grade A serviced office, including one-off option like meeting room rentals, and virtual offices if you want to enjoy grade A office perks with a price that works for you.
What is a Grade B office?
Similar to their exclusive counterparts, grade B offices are also situated in prime locations. They are more affordable and represent a great option for companies that want to maintain their presence in the city’s most prominent districts but aren’t willing to pay the top dollar for grade A space. Some examples of Grade B buildings in Hong Kong include the Lee Garden One and Lee Garden Two in Causeway Bay. Another is The Gateway in Tsim Sha Tsui, with 43-story and a height of 186 meters. Grade B buildings are usually occupied by small to medium-sized companies with a building age anywhere between 10 – 20 years. Moreover, interior design in grade B office is oftentimes significantly less glamorous and luxurious, but you can expect quality finishes. The layout is generally flexible while the floorplates are of average size. You should also expect moderately sized lobbies.
What are the Amenities of a Grade B Building?
While grade B offer similar functionality to grade A office, the quality differs. Typically, amenities in Grade B buildings include parking facilities on the premises, building security. In some instances, bicycle storage solutions, communal outdoor areas, or shared common spaces just to name a few. In terms of air conditioning, the regular B class is a mixed bag as you can find both free-standing and central options. The elevators in grade B office buildings are more than sufficient for the daily circulation of people and goods. However, they’re usually not split into passenger and delivery zones.
When it comes to management, grade B offices tend to offer good, reliable service. That being said, they don’t guarantee professional service like in grade A facilities. Also, parking space might not be included in the price. This option is the middle ground, offering a smart combination of high- and middle-tier features. In Hong Kong, there are Grade B offices with flexible workspace options like a shared office in co-working spaces, meeting room rentals, and virtual offices.
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What is a Grade C office building?
Grade C offices are generally considered to be the most basic and affordable option. Hence, they are typically occupied by businesses that prioritise cost savings over functionality, or those prepared to make investments in renovations. Grade C offices are also a practical approach for those looking to cut costs as much as possible. There are various industrial buildings in Hong Kong that are classified as Grade C office. In most cases they were built 20 or more years ago. These offices tend to have smaller floor plates in comparison to Grade A or Grade B Buildings. Grade C buildings typically feature basic finishes with not many aesthetics or decorative elements to their exterior or lobby.
What are the Amenities of a Grade C Building?
With Grade C offices, you should expect basic finishes and plain looks including a standard lobby. The floorplates tend to be a lot smaller than in A and B classes, and the flexibility of the layout isn’t exactly the strongest suit of the grade C offices.
You can expect a free-standing option instead of central air conditioning in this class. The lifts are often barely adequate and there’s no passenger and goods zoning. Similarly, the management is often minimal and parking facilities are not included. However, business with resources can renovate to make the space more pleasant and if needed, upgrade to a building with a higher grade.
How to Choose the Ideal Office Building for Your Company?
The choosing of an office location can be one of the most crucial decision that can impact a business’s long term development as renting office space in Hong Kong can be complicated. However, the building grade classification makes things a lot easier and simpler. While flexible offices is becoming a prevalent office solution for multinational companies and especially Business Process Outsourcing (BPO), considerations should be given to evaluate potential location as it will have a significant impact on the development of your business down the road, as well as your company’s needs and budget carefully in order to make an informed decision.