Q4 Real Estate’s Craig Byers and Luke Rogers bring you another informational video. This time they go live from a second generation commercial office space in The Fountains development located at 3925 Fountains Drive NE, Cedar Rapids, IA, to discuss How a Commercial Lease Space is Delivered.
(Craig) Hey everyone! This is Craig Byers with Q4 Real Estate and I’m standing here with Luke Rogers.
(Luke) Good morning Craig. How’s it going? (Craig) Good.
(Craig) We are going to talk to you guys about how lease space is delivered so Luke lets get right into it.
(Luke) Yeah Craig so how are some of the ways that lease space can be delivered?
(Craig) That’s a good question. There are several different ways that a landlord can deliver the space to the tenant. One way is first generation space. So we kind of define that as a vanilla box. That buildout isn’t going to include a lot. Its probably going to include some type of concrete subfloor, some kind of metal studs, and maybe some drywall up or demising walls. Maybe an HVAC unit is a provided supply, probably not distribution, and certainly your life safety systems if necessary. All of your lighting per code for exit signs and your sprinklers if necessary. That’s basically it for first generation space.
(Craig) Another way a space can be delivered is second generation space. That is the type of space we are currently standing in today. This is an old attorney’s office and as you can see it is already built out. You can see that there is nice floorings, wall coverings, and the offices are built out. The ceiling is in, and all the lighting. So this is kind of turn-key move-in ready for a potential tenant. So those are kind of the two ways lease space is delivered, first generation or second generation space.
(Luke) Of those two ways, first gen and second gen, what would be some pros of first generation space?
(Craig) First generation space pros are because it is not built out, you as the tenant have the ability to build this out however you want to meet all of your space needs and all of your business needs. It will be very efficient. You will be the first one living in it. There won’t be any wear and tear that you have to deal with. A disadvantage is it’s going to be more expensive than if you were trying to fit out a second generation space.
(Luke) So after we have talked about first generation space, what are some of the pros and maybe cons of second generation space?
(Craig) Second generation space pro is obviously the price. Coming in to something that is already built out, so someone has already paid for the HVAC distribution and supply, lighting, carpet, and wallcoverings. Now the disadvantage of second generation space is it may not meet your exact space needs. You may have to spend a little money to renovate it, or you as the tenant might just have to deal with the inefficiencies that the space has. So those are the pros and cons of that.
(Craig) Well perfect. I hope you guys have enjoyed this video and you think it is very informative. If you want to take a look at this space or any other space, please don’t hesitate to contact us at 319-294-3339. Everyone have a good day!
(Luke) Thanks!
You can watch the informational video, How a Commercial Real Estate Lease Space is Delivered below.
Try out our commercial lease calculator here.
For more helpful information check out our blog post titled: Stepping Through the Commercial Lease Process.
Let one of our knowledgeable listing agents partner with you to find a commercial real estate property perfect for your business needs, and assist you in working through the lease process. Contact Jason Rogers, Craig Byers, or Luke Rogers today!
