When evaluating commercial properties, one of the first distinctions often made is whether a space is offered in shell condition or delivered as a turnkey suite. These terms describe very different starting points for occupancy and are part of how landlords present office or industrial spaces to the market.
What Is Shell Space?
Shell space generally refers to unfinished areas within a building. These spaces often lack completed interiors such as flooring, ceilings, lighting, and sometimes even interior walls. The basic structure—sometimes called a “cold shell” or “warm shell,” depending on how much infrastructure is in place—serves as the framework for a future build-out.
What Is Turnkey Space?
Turnkey space is typically delivered in move-in-ready condition. These suites include finished walls, flooring, ceilings, lighting, and other standard improvements. The intent is to provide a complete environment where a business can take occupancy without requiring construction work.
Key Differences
- Level of Finish: Shell space requires a build-out, while turnkey space comes completed.
- Flexibility: Shell space allows for tailored design. Turnkey space offers standardized layouts and finishes.
- Timing: Occupying shell space may involve a longer schedule due to construction. Turnkey space usually enables faster move-in.
- Cost Structure: Financial arrangements vary, with shell space often involving tenant improvement allowances and turnkey space including construction costs within the lease terms.
Disclaimer
This article is for informational purposes only. It does not provide legal, financial, or investment advice.
Written by the Keyser Editorial Team
FAQ’s
Q: What is shell space in commercial real estate?
A: Shell space refers to unfinished office or industrial space. It often lacks completed interiors such as flooring, ceilings, and lighting, serving as a framework for future build-out.
Q: What does turnkey space mean?
A: Turnkey space is typically delivered move-in-ready, with completed walls, flooring, ceilings, and lighting, allowing immediate occupancy without additional construction.
Q: What is the main difference between shell and turnkey space
A: The primary difference is the level of finish. Shell space requires construction before use, while turnkey space is finished and ready for occupancy.
Q: Is furniture included in a turnkey option?
A: Furniture is not typically included in a turnkey option.
