Questions to Ask Before Signing a Second-Generation Restaurant Lease

Commercial leases are typically years-long agreements. Before committing to one for your restaurant space, you want to ensure it will meet your needs and goals.

From a construction standpoint, there are several factors you need to consider. Not only do you want a space that will work for your layout, but you also need it to be financially feasible. If you aren’t careful, you could end up spending more time and money retrofitting a second-generation restaurant space than you would have, had you gone with a first-generation property. For guidance as you assess options and opportunities, reach out to our team of experts at Seacoast Consultant Group.

What to Ask Before Choosing a Second-Generation Restaurant Space

The key difference between a first- and second-generation restaurant space is that second-generation properties have previously operated as restaurants. They have the necessary infrastructure in place and may even come with commercial kitchen equipment. This can be advantageous in terms of saving time and money. You can read more here about other reasons why you should consider a second-generation space. Before signing the lease, however, you should ask these important questions:

  • Is the space up to code?
  • Will it support your grease trap?
  • Is there room to add your size hood?
  • What kitchen equipment is included in the lease?
  • What is the condition of the HVAC, electrical and plumbing systems?
  • Are you happy with the layout? If not, how much will it cost to modify it to meet your design goals?
  • Are you comfortable with the lease terms?

Before signing a lease, we advise clients to carefully look at the kitchen. Evaluate if the way it is currently set up will work for the way you want to operate. Some changes are easy – modernizing the space and sprucing things up, for example. Minor work can be done quickly if the layout and “bones” are ideal for your operations.

If, on the other hand, it becomes apparent that more work will be needed to recondition the space, you may be better off going with a first-generation space. Our team at Seacoast Consulting Group can help you understand your costs and commitments so you can make strategic decisions before going too far down the road of no return. Our work is preventive in nature with the goal of reducing timelines and costs so you can maximize returns on your restaurant investment. Call us today to schedule a free consultation.

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