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Second Generation Space
The term second generation space is used to describe rental space (usually commercial) that has had at least one previous tenant who made improvements to the place, adding more value to a new tenant.
This typically refers to almost all office, retail, industrial space, etc.
The exceptions are first generation space where the space is wide-open, empty, and often only consisting of walls.
Another exception are tenants who refuse to renew a lease and choose to leave, taking or destroying all improvements they have spent on the property.
Second generation space can sometimes be highly sort after real estate.
A good example are restaurants vacating their premises. They already have all ducting, kitchen layout, cooking equipment, appropriate licenses, tables and chairs, etc, all set up. All a new tenant has to do is refresh the look of the restaurant with their own branding and they are ready for business.
This is why it is such a common sight to see restaurants, cafes, and coffee houses changing operators frequently. Because there is a highly active after-sales market for such commercial properties.
For residential real estate, homes that have been aesthetically designed with modern built-in fixtures can often command a higher price.
This is because buyers know that they will be saved from the hassle of shopping and having contractors work on the house.