NEXT GENERATION SPACE

Next generation space includes facilities that have already been leased at least once before (e.g. 3^rd^ generation space will have been gone through 2 lease cycles). A company may build-out space but never use it or have excess space after downsizing. By sub-leasing, the primary tenant hopes to cover most if not all of its rental obligations to the landlord. A company 6 years into a 10 year lease paying $40/sf may be willing to charge only $30/sf for a 4 year sub-lease, covering 75% of its obligation to the landlord, rather than let the space sit empty. Leasing the same space directly from the landlord at current rates (not those set 6 years ago) may cost considerably more and may require a longer-term lease commitment. Therefore, sub-leasing next generation space is often a good option for a startup company.

Next generation space may also become available when a primary tenant goes out of business or an expired lease is not renewed because the company relocates. Depending on your company's needs, the space may already be ready to use or may require some renovation to meet your specific R&D requirements.