Before you lease restaurant space, confirm that the zoning and the building allow food service, check the kitchen infrastructure (exhaust hood, grease trap or interceptor, gas, electrical capacity, water and sewer), count the parking and seating, and understand who pays for what in the build-out. Second-generation restaurant space, already built out for a previous restaurant, can save significant time and money if the layout fits. Negotiate free rent for the build-out period and a lease that gives you time to recover your investment.
First- vs. second-generation restaurant space
| First-generation (shell or never a restaurant) | Second-generation (former restaurant) | |
|---|---|---|
| Build-out cost | Highest: kitchen, hood, plumbing, grease interceptor, restrooms | Lower if equipment and infrastructure can be reused |
| Time to open | Longer: design, permits and construction | Shorter if layout and systems fit |
| Layout flexibility | High | Limited by the existing kitchen and plumbing |
| Risk | Construction cost and delays | Condition of used equipment; why the last restaurant left |
Checklist: the building
- Zoning and use. Confirm restaurant use is allowed and whether alcohol, outdoor seating or late hours need extra approvals.
- Exhaust hood and fire suppression. Is there an existing hood, and is it the right size and type for your cooking? Is there a path for the duct to the roof?
- Grease trap or interceptor. Most food service needs one. Ask whether one exists and its size.
- Utilities. Gas service, electrical capacity, water line size and sewer capacity. Upgrades can be expensive.
- Restrooms and accessibility. Required numbers depend on seating.
- Parking and seating. Local codes often tie required parking to seats or floor area.
- Visibility and signage. Frontage, traffic, signage rights and drive-through potential.
Checklist: the lease
- Free rent during build-out. Restaurants often need months to permit and build. Negotiate rent to start after you open or after a set period.
- Tenant improvement allowance. See how to negotiate TI allowances.
- Term and renewal options. Long enough to recover your build-out investment, with options to extend.
- Exclusive use. In a shopping center, ask for a clause that keeps the landlord from leasing to a direct competitor.
- Equipment ownership. In second-generation space, confirm who owns the existing equipment and what condition it is in.
- Expenses. Restaurants can carry higher CAM and insurance costs. Read what CAM is.
- Personal guaranty. Common for restaurants; negotiate a cap or burn-off.
- Assignment rights. If you sell the business, you will want to assign the lease. See sublease vs. assignment.
Where restaurants lease in Northern Virginia
Shopping centers with a strong grocery or anchor tenant, pad sites with drive-through potential, and walkable town centers are the usual targets. Our guides on finding retail space for lease in Northern Virginia and finding retail space in a busy shopping center explain how to compare locations. Browse bars and restaurants for rent or sale in Virginia and restaurants for sale in Virginia.
How Fred's Properties helps
We help restaurant owners find first- and second-generation space, check the basics on zoning and infrastructure, compare locations and negotiate free rent, allowances and lease terms. Learn more about our tenant representation service.
This article is general information. Confirm requirements with the local zoning, building and health departments, and have an attorney review your lease.
Next step
Call Fred at 703-505-3501 or send us your concept, the size you need, seating, budget and preferred area.
Frequently asked questions
What is second-generation restaurant space?
Space that was previously built out and operated as a restaurant, often with a hood, grease interceptor and plumbing in place.
Do I need a grease trap for my restaurant?
Most food service operations do. The requirement and size are set by the local sewer authority and plumbing code.
How long is a typical restaurant lease?
Restaurant leases tend to be longer than many retail leases, because tenants need time to recover their build-out investment. Negotiate renewal options.
Can I get free rent while I build out my restaurant?
Often yes. Free rent during permitting and construction is a common negotiation point for restaurant leases.
Who pays for the hood and kitchen build-out?
It is negotiable. The landlord may contribute through a TI allowance, or deliver some infrastructure as part of the space.
