Cold Shell
A cold shell (also called a 'dark shell') is the most basic commercial lease delivery condition. The landlord provides only the structural envelope: concrete slab, exterior walls, roof, and basic utility stubs at the property line. The tenant is responsible for installing all MEP systems, interior partitions, ceilings, flooring, and finishes from scratch.
Updated July 13, 2026
Key Facts
- 1Cold shell buildouts cost $20–$60/sqft more than equivalent white box buildouts due to the additional MEP infrastructure required
- 2Timelines for cold shell buildouts are typically 4–6 months longer than white box projects because permitting and rough-in work must be completed first
- 3Cold shell spaces are most common in ground-up construction where the landlord has not pre-built any tenant infrastructure
Cold Shell vs. White Box: The Real Cost Difference
The gap between a cold shell and a white box comes down to MEP infrastructure. In a cold shell, you're paying to run electrical service from the main panel to your suite, size and install your own HVAC equipment, run plumbing from the building's main lines, and frame out all interior walls — before any tenant-specific work begins. In a white box, all of that is already done.
For a 1,500 sqft retail space, MEP infrastructure in a cold shell typically runs $45,000–$90,000 — money you'd spend before ever picking a floor finish. That's why cold shell buildouts budget $80–$200/sqft total for most commercial concepts, vs. $50–$140/sqft for equivalent white box work.
When a Cold Shell Is Worth It
Cold shells offer one key advantage: flexibility. Because nothing is pre-installed, you have complete control over HVAC sizing, electrical panel placement, plumbing layout, and every other system. For a restaurant with highly specific kitchen equipment requirements, this can matter — the MEP systems you install are sized perfectly rather than adapted from a landlord's spec.
Cold shell spaces also often come with higher TIA offers from landlords, because the tenant is doing more of the heavy lifting. In ground-floor retail in new construction, a cold shell space with a $100+/sqft TIA can be a better deal than a white box with a $50/sqft TIA — do the math on your specific buildout scope.
Frequently Asked Questions
What is the difference between cold shell and dark shell?
The terms are used interchangeably. Some practitioners use 'dark shell' specifically to mean a space with no electrical service whatsoever (only rough utility stubs at the property line). In practice, both mean the same thing: bare structure, tenant installs everything.
How long does a cold shell buildout take?
A cold shell buildout typically takes 6–9 months from lease signing to opening, compared to 3–6 months for a white box project of similar size. The additional time accounts for permitting, MEP rough-in, and inspections that must be completed before interior finishes can begin.
Can I negotiate a cold shell into white box condition?
Yes, this is common. Landlords will often pre-install specific MEP elements if you agree to a longer lease or accept a slightly higher rent. Identify which items matter most for your concept — HVAC capacity and plumbing placement are usually the highest-leverage asks.