Shell and core construction or the base build concept pertains to the way of constructing the basic structure of a building before it is fitted with its interior features. This way, the would-be tenant will be in control over how he designs the interior space. 

The application of this building concept is common in office buildings and some rental homes for rent. Before the advent of this concept, developers would install access floors, carpet tiles, air conditioning, and lighting fixtures that would give potential tenants the standard layout of the building’s interior. 

However, this would not always work out because tenants’ plans for the space differ from the standard layout provided by developers. That is why the shell and core construction building concept became popular because of its cost-effectiveness and flexibility for tenants to be creative in designing the interior space of the building. 

What Does This Building Concept Include?

We already mentioned that shell and core construction only build the main structure of the building without interior features such as flooring and furniture. Here are the primary things included in this building concept. 

  • Foundation and structural skeleton

  • Base plant

  • Cladding

  • Common areas such as lobbies, parking lots, toilets, staircases, loading bays, and elevators

  • Building envelopes such as roofs, external walls, insulation, and glazing

  • External work

You can also add other components to the core and shell construction concept, such as: 

  • Fencing, pavement, pathways, and boundary walls

  • Plumbing, electrical, security, fire detection, and mechanical systems

  • Fire barriers

  • Landscaping

  • Signage

  • Statutory requirements

There are no hard-and-fast rules that determine what components to include in a core and shell construction project. It will almost always be at the pleasure or the specific needs of the building developers and owners. 

Grey Shell vs. Vanilla Shell

Vanilla shell is a more common type of base build concept that contractors deliver to commercial and residential real estate owners who want to rent out their buildings. It includes fundamental finishings such as:

  • Finished ceilings with lighting

  • Finished floors and sealed concrete

  • Finished bathrooms

  • Electrical outlets and panels

  • HVAC ducts and controls

  • Sprinkler system

In contrast, a gray shell is a commercial or residential building that requires more work to be done than the vanilla shell type. Typically, it has unfinished floors, bare walls, no electrical work, and no plumbing system. The only thing it allows is a connection point for electrical service and the sewer. It may also have an HVAC unit sans the ductwork and controls or a sprinkler system if required in the local building code. 

Shell Build-Out

The process of making the shell interior fit for occupancy is called shell build-out. This phase is where you install features such as flooring, interior walls, electrical fixtures, lighting, mechanical systems, and furnishings. 

Executing property build-outs comes in two ways. The first one is when the building owner buys the materials and leaves them in the building, allowing tenants to install them as they like. The other is when the landlord does not provide the materials but offers a build-out period to tenants that is free of rent. 

Type A Build-Out

While Type A build-out has no standard definition, it typically involves installing certain elements of finishing to the building. The building owner or developer may include these components in a Type A build-out. 

  • Interior surface finishes

  • Floors or raised ceilings

  • Electrical or mechanical services

  • Blinds


The tenant can provide some ideas on the building of the core and shell project, especially if the tenant has complex build-out requirements. Involvement in the early phase of the build-out ensures that the tenant meets his needs and saves money in the process. 


Type B Build-Out

Many renters surely know about Type B build-out. This build-out type typically has most of the interior features installed, such as the external walls, floors, ceilings, electrical services, mechanical services, toilets, and lifts. The tenants only need to add the decor, lighting, and other preferred elements to make the space more personalized.

Here are some of the ideas that tenants may add to a Type B build-out to make the space more distinctive and personal. 

  • Furniture

  • Branding

  • Decor

  • Multimedia equipment

  • Offices 

  • Conference rooms

Build-Out Costs

Typically, the developer will help cover the cost of the tenant’s floor boxes, grommets, and carpets. The landlord-tenant contract should specify the requirements of the local building code. 

Typically in such contracts, the building owner shoulders the cost for the base structure construction, but not automatically the expenses for installing the finishes. It should be clear in the contract who pays for which. 

Endnote

Now you know about the concept of shell and core construction. This building idea can be pursued by landlords who want to operate residential or commercial rental properties. It is a cost-effective way of building rental properties, and it allows tenants to be in control over the interior finishes of the building to make it more unique and personal to them.