Shell&Core is a state of commercial or residential premises, in which only basic construction work is completed. This format includes the completion of the basic elements of construction, but does not include a full interior finish. Shell&Core spaces are often used in commercial real estate when tenants or buyers want to customize the space to their needs.

Contents:

  1. The Main Thing About the Format
  2. Pros and Cons of Shell&Core

The Main Thing About the Format

Shell&Core main features:

  • Main walls and slabs: the room has basic building work completed, including concrete or brick walls, slabs, and floor screed.
  • Utilities: Shell&Core usually already has all the necessary utilities installed — water, electricity, ventilation, and heating. However, they are not finalized or wired to the premises.
  • Lack of finishing: the interior of the premises is in a “raw” state — walls are not plastered and painted, and floors and ceilings are not treated. The owner or tenant has the opportunity to perform finishing works to his taste.
  • Double-glazed windows: basic window elements are installed, which allows to maintain standard operating conditions of the room, but there are no additional interior elements.

Difference from other types of finishes:

  • Finishing includes the completion of all finishing works, after which the premises are completely ready for use. Shell&Core, on the other hand, provides an opportunity to carry out all these works independently.
  • Turnkey finishing is fully completed works, starting from engineering systems and ending with furniture installation. Shell&Core leaves the choice of final decisions to the owner or tenant, which allows to create an individual space.

Pros and Cons of Shell&Core

Advantages:

  • Personalized fit-out: Shell&Core gives tenants and owners the ability to choose their own materials, style, and layout. 
  • Rental vacations: often landlords provide vacations for the period of renovation works, which reduces the financial burden on the tenant during the finishing stage.

Disadvantages:

  • Long repair time: the room requires significant time and material costs to complete all the finishing work. It will take several weeks or even months to fully prepare the space.
  • Financial risks: along with the cost of materials and labor, there may be unforeseen costs, for example, if construction defects are discovered or if the prices of construction materials rise sharply.

Shell&Core is widely used in commercial real estate, such as office and retail space, as well as in residential new buildings. This format is ideal for tenants or owners who want to control the interior finishing process and create a space that meets their specific requirements.