Cold Shell
A minimally finished commercial space delivered as structure and utility stubs only, without HVAC distribution, finished interiors, or move-in-ready systems.
Definition
Cold shell (also called grey shell or dark shell) is the unfinished end of the shell-condition spectrum. The landlord typically delivers exterior walls, roof, concrete slab, and capped utility connections. HVAC, lighting, finished drywall, restrooms, and often full electrical distribution are incomplete or absent. Tenants (or landlords via TI) must build the space out before occupancy. Small bay and flex parks more often deliver warm or vanilla shell because many trade and service tenants need faster move-in. Cold shell shows up more in ground-up shells, highly customized industrial users, or deals where a lower face rent trades against higher buildout cost and longer time to open. Compare quotes on total occupancy cost and schedule, not base rent alone.
Example
Two 3,000 SF units: Unit A is cold shell at $10/SF with no HVAC or restroom; estimated buildout is $50,000 and four months. Unit B is vanilla shell at $13/SF with HVAC, panel, restroom rough-in, and roll-up door; estimated buildout is $12,000 and six weeks. Unit B can be cheaper on total cost and faster to occupy despite the higher face rent.
See Also
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