first-generation space

first-generation space

Office space in a new building.First-generation space lacks walls,floor covering, ceiling tiles, and lighting; it has never been built-out.When comparing tenant improvement allowances among buildings under consideration for leasing office space, it is important to note if the space is first generation or second generation, because the build-out will typically be much more expensive in first-generation space. Even if second-generation space has to be completely reconfigured,there will still be some savings by the ability to reuse doors and light fixtures.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The article then goes on to assert that "the best support for the components of both the sales comparison approach and the components of the income capitalization approach is second-generation space." To automatically default to valuing first-generation space as if it were second-generation space ignores the market's acceptance of the property.
This demand/acceptance is strengthened when there are similar properties in a marketplace continuing for a number of years as first-generation space even when these properties do not change hands.
Second-generation sales may have a utility equal to or less than first-generation space. The original user, for whatever reason, is no longer utilizing the property.
If the second-generation space is able to capitalize on all of the utility of the development, the difference between it and first-generation space may be minimal or nonexistent.
"The Turnpike Crossing building is, essentially, first-generation space, yet is already ideally fit-out for The Children's Place.