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Insights: your Tenant Improvement Toolbox

Compare the Pros and Cons of 1st and 2nd Generation Spaces


Christine Rachelle

What are the pros and cons of choosing first generation, never-before-occupied space versus second generation space from the perspective of a veteran general contractor? Hint: it's more than the cost of construction.

When constructing a new business space, whether you need an office, retail store, or flex or warehouse space, you may narrow your options down to the which is the most affordable to construct or which space has the most cache for attracting new business. In this regard, a second generation space will almost always come in to be more cost effective than a first generation, never-before-occupied space, and a first-generation space can almost always be justified for businesses with lots of money to spend, especially for national brands. However, other factors should be considered in both the construction and in the long-term impacts of choosing one type of space over the other. Look over our chart below comparing the pros and cons of building in a first generation space versus a second generation space from the perspective of a general contractor who specializes in commercial interior construction, some of which your broker will confirm, and some of which they may not have considered.

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