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They upgrade automatically as soona s the necessary conditions are reached
(like a minimum in land value and available servioces)
can you go into further detail about services required for buildings to upgrade? or someone else?
Why should I do this, there is a Wiki that is helpful for this ;)
https://skylines.paradoxwikis.com/Zoning#Building_Level
Generally you just need to hover your mouse pointer over the level bar of a building and it says what it desires most.
Cities Skylines is not like some other city builders where you have:
x police stations and y firestatrions and z parks are needed for this building to go to level 3
Instead things are solved more dynamically ... i.e. all things have certain value (as outlined in the CS Wikipedia article I linked) ... the sum of all positive and negative factors determines the building level a building can attain.
And each type of zone (like industral, commercial, residential) has other requirements.
Example:
A major contributing factor to a residential buildings score is land value (which, for example, is affected by closeness of parks or medical facilities).
An industrial building however doesn't care all too much about land value, but the availability of properly educated workers is very important for it, as well as the ability to deliver its goods to where they are needed (for example to other towns or to commercial zones within the city)
and so on