WHAT IS SHELL SPACE?
Shell Space denotes the interior condition of a specific space that does not have interior improvements or finishes. With a new development or new construction, the spaces are typically delivered in a Shell condition (See Cold Grey Shell vs Warm Vanilla Shell for more information); which means the space is essentially four perimeter walls with a primarily open floor plan and a ceiling. The tenant then builds out the space to their specific parameters which makes it no longer a shell, but a finished or built out space.
Additionally, a landlord or tenant may choose to demolish the interior finishes of an already built out space if the specific finishes are not beneficial or needed by the next tenant. This is returning a space to a Shell Condition and is often required prior to performing a new build out on a second generation space.
Shell construction typically denotes the floor, windows, walls and roof of an enclosed premises and may include some HVAC, electrical or plumbing improvements but not internal walls or interior space partitioning, individualized tenant finishes or fixtures.
Essentially, a Shell Space is an open box that is ready for a tenant to build out or install their unique fixtures in.