Guides·July 2026

Second-generation restaurant space: what to check before you sign

A second-generation space — one that was already a restaurant — is the biggest cost lever in the business. Reusing a sound hood, grease interceptor, and utility service can cut a buildout nearly in half. But "fully equipped former restaurant" in a listing tells you nothing about whether any of it passes inspection today. Here's what we check when an owner asks us to walk a space before signing.

The eight-point check

  • Hood and duct: right type and size for your menu, duct condition (grease-soaked duct may need replacement), suppression system tagged and current.
  • Grease interceptor: exists, sized for your fixture count, and serviceable — an undersized or buried trap is a five-figure surprise.
  • Gas capacity: meter and line sized for your equipment load; upgrading service involves the utility's timeline, not yours.
  • Electrical service: amperage and panel space against your equipment schedule; older spaces routinely need service upgrades for modern lines.
  • HVAC and make-up air: equipment age and capacity, and whether make-up air exists at all — many older kitchens never had it.
  • Plumbing and drains: floor drain locations versus your layout (moving them means sawing slab), water heater capacity, condition of under-slab lines.
  • Restrooms and accessibility: current code compliance — a change of tenant can trigger ADA upgrades that older restrooms fail.
  • Certificate of Occupancy and violations: confirm the use matches, and search for open code violations that convey with the space.

'As-is' means exactly that

Landlords lease second-gen spaces as-is, equipment included and warranted by no one. The walk-in that 'just needs a recharge,' the hood cleaned two years ago, the interceptor no one can locate paperwork for — after signing, every one of them is your line item. None of this should kill a deal; all of it should price into your negotiation, as rent abatement, TI allowance, or scope the landlord completes.

Use the walkthrough as leverage

A contractor's pre-lease walkthrough produces two things: a realistic conversion budget, and a punch list of defects you can negotiate with. Owners who walk in with 'the duct fails NFPA 96 and the interceptor is undersized — we need eight weeks' abatement' sign better leases than owners who discover it in demolition.

Found a space you're serious about?

We'll walk it with you before you sign — infrastructure check, conversion budget, and the negotiation list, within days.