A small valley

Definition: A structure acting as a barrier to hold back water, usually erected as a bank or wall across a free-flowing watercourse such as a stream or river. Dams may be constructed of earth, rocks, logs, or anything else that will create a reservoir; large modern dams are usually constructed almost wholly of concrete reinforced with steel. The purposes of dams include flood control, irrigation, navigation, recreation, and the generation of hydroelectric power. Nearly every major river in the world has at least one dam. Some of the drawbacks of dams include degraded habitat for fish, birds and other wildlife; reductions in water quality; reduced streamflows; and interruption of the natural sediment deposition cycle.

Terms, Definitions, and Concepts: Agriculture, Biology, Conservation and Sustainability, Construction and Building, Ecology, Forestry and Silviculture, Geography, Hydrology, Management, Science, Water

Definition:
1. One form of a shell lease, a dark shell is a commercial or residential building with an unfinished interior and lacking heating, ventilating, and air conditioning (HVAC), and usually without lighting, plumbing, ceilings, elevators, or interior walls. A dark shell is ready for warm shell or vanilla shell improvements (VSI) as well as tenant improvements (TI's), which are to be completed by the tenant once the lease agreement has been negotiated and executed. In many cases, the landlord will offer financial incentives in the form of a tenant improvement allowance (TIA), which pays for or at least partially defrays the cost of any improvements necessary for the tenant to occupy the building itself. Tenant improvement allowances do not usually include furniture, fixtures, and equipment (FFE) or trade fixtures necessary for the tenant to conduct business. Usually vanilla shell improvements (VSI), or those improvements necessary to upgrade the building from a cold shell or dark shell state, are not completed until the lease agreement between the tenant and landlord has been negotiated and executed. This ensures that the landlord does not pay for improvements that are unnecessary or that the tenant does not want.

2. The lease agreement or contract for a dark shell building. A proper dark shell lease should describe in detail the vanilla shell improvements (VSI) and tenant improvements (TI's) that are to be completed, and any other information necessary for construction of the building to be completed (commonly known as build-out) prior to tenant occupancy.

Same as Dark box. More or less the same as Arctic shell, Bare shell, Base shell, Cold dark shell, Cold dark box, Cold shell, Grey shell, or Grey box.


Discussion: Like many real estate terms and phrases, practical use and meanings of those terms associated with shell leases (e.g., vanilla shell, base shell, cold shell, warm shell, etc.) differ by location and situation, sometimes even within the same region or municipal area. As they say, the devil is in the details. The lease or sales contract should clearly and exactly specify the degree to which construction of any sort of "shell" or "box" building has been or will be completed prior to tenant occupancy. As either a tenant or landlord, you should not assume that the other party's definitions of shell lease terminology are the same as yours. Get it in writing, and make sure you understand and agree with all the terms and conditions of the shell lease agreement before you sign. If necessary, have a real estate attorney review the contract prior to its execution.

Shell leasing and its various forms (warm, cold, base, etc.) are used primarily in commercial real estate, but are gaining popularity in upscale condominiums and townhouses and other high-end residential real estate transactions. The idea is to attract either tenants or buyers, or both, by offering customizable living units. Financial incentives in the form of tenant (or buyer) improvement allowances afford new residents the opportunity to select nearly all aspects of interior decor, including relatively large projects such as plumbing and fixtures, wiring, and interior walls.


Terms, Definitions, and Concepts: Real Estate, Construction and Building, Appraisal, Auction, Finance and Investment, Management

Legal (Law): 1. Of minimal importance or significance. Minor issues that are too trivial to be considered by a court of law. An example of a de minimis issue is an act that is technically a violation of a contract, but causes no harm or damage and does not alter the fundamental nature of the agreement.
Real Estate 2. A property that derives little or no value from on-site facilities or amenities.

Terms, Definitions, and Concepts: Appraisal, Auction, Finance and Investment, Legal (Law), Management, Real Estate, Taxes and Taxation

An IRS designation for a person who regularly buys and sells real property

The amount of money needed to meet the periodic payments of principal and interest when a debt is amortized

Equal to the total liabilities of a company or business divided by the total amount of equity owned by its shareholders; a measure of the financial leverage of a business, usually determined from the previous fiscal year's financial statements. The debt-equity ratio identifies the portion of a company's assets that are financed through debt rather than shareholders' equity; a debt to equity ratio greater than 1 means that a larger proportion of assets are financed through debt, which may indicate a riskier investment.

A deceased person.

Decentralization is a system which requires multiple parties to make their own independent decisions

A statement of all the covenants, conditions and restrictions (CC&R's) which affect a parcel of land

The application of privately owned land to the public for no consideration, with the intent that the land will be accepted and used for public purposes

1. The process of moving from general evidence, principles, or nonobservable explanations to specific observable actions, consequences, or conclusions. 2. In the scientific method, deductive reasoning is used to determine the specific observations, measurements, or other data that will either support or contradict the research hypothesis.

1. The process of moving from general evidence, principles, or nonobservable explanations to specific observable actions, consequences, or conclusions. 2. In the scientific method, deductive reasoning is used to determine the specific observations, measurements, or other data that will either support or contradict the research hypothesis.

A written instrument by which a property owner (grantor) transfers to a grantee ownership of and title to real property.

A legal document in which title to property is transferred to a third party trustee as security for an obligation owed by the trustor (borrower) to the beneficiary(lender)

A written instrument which when properly executed, signed, delivered and accepted conveys title to real property from one party, the grantor to another party, the grantee.

Failure to fulfill a duty or promise or failure to perform any obligation or required act. The most common occurrence of default on the part of a buyer or lessee is non-payment of money.

Definition:
That which can be voided, altered, challenged, undone, cancelled, defeated, or annulled, especially through operation of law.


Terms, Definitions, and Concepts: Real Estate, Title and Title Insurance, Legal (Law), Management

Any fact, claim, lien, encumbrance, or document that is sufficiently valid to adversely affect, injure, impair, or cast doubt upon the title to a parcel of real property.

Commissions which are earned but not yet fully paid

A judgment against a borrower, endorser, or guarantor for the balance of the debt issued when the security for a loan is insufficient to satisfy the debt

Small, sheltered valley or glen, usually wooded

A deposit of sand and soil, usually triangular, that forms at the mouth of a river

1. A term, frequently used in connection with zoning requirements, which means the maximum number of building units per acre or the number of occupants or families per unit of land area (acre, square mile, etc.). 2. The ratio of developed or improved area to total land area.

Definition: An agency of the government of New York City that regulates building and construction safety by enforcing the Building Code, the Electrical Code, Zoning Resolution, the New York State Labor Law and the New York State Multiple Dwelling Law.

Terms, Definitions, and Concepts: Construction and Building, Management, Real Estate, Zoning