"Shell & Core" is a term used in the field of commercial real estate to describe the state of a building or space that is available for lease.
When a space is described as "Shell & Core", it means that the building or space has been constructed to the point where the external structure and engineering networks are complete, but the interior is not fully equipped.
Specifically, Shell & Core usually includes:
- The complete external structure of the building, including the roof, windows, and doors.
- The basic systems of the building, such as heating, plumbing, electricity, and other engineering networks.
- Elevators and staircases.
However, the building's interior is typically empty and does not include flooring, ceilings, partitions, lighting, air conditioning, and other equipment. These elements are often customized to the specific needs of the tenant and therefore are installed after the lease agreement is concluded.
Tenants who lease a space in the Shell & Core state, or so-called Open Plan format, where the space is equipped with raised floor coverings and ceiling, usually receive a "fit-out" contribution from the landlord, i.e., for the completion and furnishing of the interior according to their needs. The advantage of this approach is that the tenant can tailor the space to their specific needs and preferences.
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