While new construction can offer design flexibility and exciting new locations, second generation spaces are often a great option for tenants. These spaces provide opportunities for businesses to lease or buy locations at a lower cost and make them ready to use in a fraction of the time. Here are just a few things to keep in mind when working with second generation space.
What is Second Generation Space?
Simply put, a second generation space is commercial real estate that was previously occupied. These spaces have sales and service areas, offices, breakrooms, storage, and other finishes depending on the type of use. Second generation space differs from shell space or spec space that are either unfinished or prefinished but have never been used.
Benefits of Second Generation Space
The main benefits of second generation space are savings in both time and costs. If the existing space finish matches the layout and décor you need for your business, it can be a simple matter of cleaning and making minor repairs before moving in. Most often, a space may not be exactly right but can be easily and quickly modified. For restaurants, salons, and other uses that have high construction costs, having plumbing, electrical, and mechanical systems already in place can provide significant savings and allow a business to focus on advertising and other startup costs.
Second generation spaces also offer the benefit of an established location. With new construction, sometimes a business is the first to move in and may be the only one in the building for a period of time. Second generation spaces can provide access to established clientele from neighboring businesses, allowing a new tenant to get established faster. By using these spaces, a business can also draw on the branding or distinct characteristics of a property to promote their own brand.
Considerations for Using Second Generation Space
When looking at second generation space, give careful consideration to the space and how it will work for your business. Layout and configuration are the first things to consider for how well the space aligns with your business needs. Additionally, consider zoning and building code requirements like the number of required restrooms for your use. Make notes of the overall property condition and find out as much as you can about the age and condition of existing equipment, including any available warranties. If the layout and condition are good, and the space meets code requirements, then a second generation space could be among the best options for your business.
Whether you are looking to lease or buy commercial real estate, our agents can help you identify second generation spaces that will work for your business. Learn more about our services or contact us to see how we can help you find the ideal new location for your business.
