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second-generation space

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second-generation space

A term typically applied to office space that has had a prior tenant and so has some improvements that are reusable by a subsequent tenant,such as some walls,doors, ceiling treatments, and light fixtures. Contrast with first-generation space, which has never been customized for a tenant and consists of wide-open space with support columns, concrete flooring, and the concrete bottom of the floor above.



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To automatically default to valuing first-generation space as if it were second-generation space ignores the market's acceptance of the property.
For example, GVA represents Modell's Sporting Goods, the privately held leading sporting goods chain, who look for second-generation space at below market rents.
The second-generation space appeals to retailers who are looking for a lower cost of occupancy, and it can be a good alternative in locations where the costs of land and new construction are prohibitive," Cooper explains.
 
 
 
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