Real Estate Glossary

Allowance of Building Shell

Search for glossary terms (regular expression allowed)


Term Main definition
Allowance of Building Shell

One of three arrangements often used for financing tenant improvements (finishing out office space to accommodate a tenant such as walls, doors, carpeting etc.) Often used in a yet-to-be built building, this arrangement caps the landlord's expenditure at a fixed dollar amount over the negotiated price of the base building shell. This arrangement is most successful when both parties agree on a detailed definition of what construction is included and at what price. Tenants may ask for a contingency in the event the actual build-out costs are less than the allowance, requiring the landlord to return the savings in the form of rent abatement or other concession.

Hits - 1209

San Francisco Property Management

47 Kearny Street
San Francisco, CA 94108


Phone: 415-981-5780
E-Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
California DRE #01183885