You are no doubt familiar with the A+, A, B+, B ratings issued by ratings agencies such as Moody’s, Fitch and S&P. Well now, office buildings will be assigned their own rating.
The Spanish Office Association (AEO) has spearheaded the initiative designed to promote efficiency, transparency and professionalism in the office sector. The AEO has named this initiative the Technical classification for office buildings.
The certification is voluntary and will come into force within the next two months, however it is expected to become the main benchmark guarantee for the real estate market
WHAT IS EVALUATED?
Everything except the building’s aesthetic appearance and location will be analysed. The AEO has established the following four categories to be evaluated:
- Architecture: floors, heights, communal areas, external envelope.
- Installations: electricity, HVAC system, telecommunications, security, parking.
- Unique features: floors and façades.
- Age of Building and Certifications: last refurbishment and energy sustainability.
These 4 categories are then subdivided into 45 parameters, which are then scored (optimum, intermediate, low). The sum of the scores obtained for each parameter dictate the final classification obtained: A+, A, B+, B, C.
WHY IS IT IMPORTANT?
This initiative guarantees objectivity and independence in the classifications, given that it values the technical parameters of an office building considered most important by market consensus. This will favour decision-making regarding properties in the preliminary analysis phase and the study phase.
It is expected that by 2019 the top 1000 most-emblematic buildings in Spain will be certified by the ctAEO.
WHO WILL CARRY OUT THE EVALUATIONS?
The evaluation will be carried out by specialist independent companies, CBRE being one. The AEO will then review the findings and award final certification, which should be reassessed at pre-established intervals to measure for any possible deterioration that could have occurred in each building.