1. A commercial or residential building with a finished exterior facade and landscaping and unfinished interior units, to allow for tenant improvements (TI) and the installation of furniture, fixtures, and equipment (FFE).
"Base shell" and "grey shell" refer to a more or less unfinished interior. "Vanilla shell" refers to a minimally
finished interior, usually with ceilings, lighting, plumbing, heating and cooling (HVAC,), interior walls (painted
or unpainted), electrical outlets, rest rooms, and a concrete floor.
2. The completeness of a building at a specific stage of construction; usually refers to a completely finished exterior and a minimally finished or unfinished interior.
A lease agreement wherein a tenant leases the unfinished shell of a building, as in a new shopping center, and agrees to complete construction himself by installing ceilings, plumbing, heating and air conditioning systems (HVAC), and electrical wiring, as well as those trade fixtures necessary for the operation of the business.
Discussion: Like many real estate terms and phrases, those 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" building has been or will be completed prior to tenant occupancy.
Shell leasing and its various forms (warm, cold, base) 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, Title and Title Insurance, Appraisal, Auction, Finance and Investment, Management, Legal (Law)
A modern classification of retail stores, characterized by off-street parking and clusters of stores, subject to a uniform development plan, and usually with careful analysis given to the proper merchant mix
Definition: A dynamic auction in which the bids are submitted by the bidders in writing rather than orally. The bids are usually recorded in a single list, with successive bidders able to see the entire list of previous bids. At the end of a designated period of time, the bidder with the highest bid wins the auction.
Terms, Definitions, and Concepts: Auction, Real Estate
The practice of manipulating and controlling forest establishment, growth, composition, structure, and to a certain extent, function. Silviculture can be thought of as agriculture for the forest, with trees as crops.
The entire area of an interior space, wall-to-wall and true ceiling to true floor. True ceiling height refers to
the structural basis for an interior space and does not include suspended or "drop" ceilings. Likewise, true floor
refers to the lowest structural unit, either the floor itself or the concrete slab underlying the floor.
Definition: Former name of the Natural Resources Conservation Service (NRCS), a federal agency of the United States created in 1935 to assist private landowners and managers with conservation and protection of soil, water, and other natural resources. The NRCS provides information and consultation services, as well as financial assistance for conservation projects and programs.
Terms, Definitions, and Concepts: Agriculture, Conservation and Sustainability, Forestry, Hydrology, Management, Science, Water
The specific qualification included in the deed used to create an estate in qualified fee determinable. The grantee must ensure that the special limitation is continually met in order to avoid the possibility of reverter, a future interest retained by the grantor of the estate..
Example: Steve sells a parcel of real property to Ed with the special limitation that it can only be used for a church. If Ed uses the land for anything else, Steve automatically recovers full ownership of his former estate and Ed's estate ends.
Terms, Definitions, and Concepts: Real Estate, Title and Title Insurance, Legal (Law), Management