The condition the landlord hands you is the single biggest swing in what a finish-out costs. A raw or cold shell has to be brought up to a white box before any of your own work starts, which on i30 Builders' published card is $55 to $85/SF by itself, or $110,000 to $170,000 on a 2,000 square foot suite. A second-generation space whose restrooms, HVAC distribution and ceiling can stay skips that layer, and often keeps the tenant's own work in the light TI range ($35 to $65/SF) rather than the standard one ($65 to $95/SF). That difference is usually larger than every finish selection you will agonise over combined.
The terms, plainly
- Cold or raw shell: four walls, a slab, and utilities brought to the space but not distributed inside it. No ceiling, no interior HVAC distribution, often no restrooms.
- Grey shell: some distribution in place. Usually HVAC units set, sometimes restrooms roughed or built, ceiling grid occasionally hung.
- White or vanilla box: lease-ready. HVAC distributed, restrooms built to code, ceiling grid and lighting in, walls finished ready for paint, level flooring.
- Second-generation: a space a previous tenant fitted out. Value depends entirely on how close their use was to yours.
None of these are legally defined terms. What one landlord calls a white box another calls a grey shell, which is why the lease language matters more than the label in the listing.
Second-generation is only a saving if the use matches
A former salon is worth a great deal to an incoming salon, because the plumbing runs to where wash stations go. It is worth much less to an incoming office, which will pay to remove what it cannot use. Demolition is not free, and a space fitted out badly for someone else can cost more than an empty one.
The question is not whether the space is second-generation. It is whether the expensive infrastructure, plumbing, HVAC distribution, grease interception, medical gas, matches what you need in roughly the right places.
What to confirm on the walk
Written Scope
Planning this type of project?
Tell us your space, city, and timeline. We return a written scope with lump-sum pricing, no obligation.
- Are restrooms present, and do they meet current accessibility requirements rather than the code in force when they were built?
- Is HVAC distributed through the space, or is there simply a unit on the roof?
- Where is the electrical panel, what is its capacity, and is there room for the circuits you will add?
- Is the slab penetrated where you need drains, and where would new ones have to go?
- Does the ceiling grid pass, or is it damaged and out of level enough to need replacing?
- What is the landlord obliged to deliver in writing, as opposed to what the listing implies?
Listings overstate. Always.
Marketing material describes a space at its best. A listing advertised as second-generation restaurant space can turn out to have no hood, a grease interceptor undersized for the new concept, or gas service that will not carry the equipment list. Each of those is a correction discovered after signature, and they are not small: a new Type I hood system is $45,000 to $75,000 on the published card, and an exterior grease interceptor $20,000 to $45,000.
Have the space walked by whoever will build it, before you commit. It is a free hour that routinely changes the number by tens of thousands.
Have the space walked first
We confirm what the shell actually includes and what it will cost to finish, in writing, before you sign anything. Call (469) 721-0146. Response within 1 business day.
Frequently Asked Questions
Common questions about this topic from DFW tenants, landlords, and business owners.
How much does second-generation space really save?
It depends on what you can keep. A cold shell first needs the white box layer, $55 to $85/SF on the published card, before any of your own work; a second-generation suite whose restrooms, HVAC distribution and ceiling stay skips it. The saving only materialises if the previous use is close enough to yours that you keep the expensive infrastructure.
Is a white box the same as a vanilla box?
In practice yes, and neither is a legally defined term. What one landlord calls a white box another calls a grey shell. Read what the lease obliges the landlord to deliver rather than trusting the label.
Can second-generation space cost more than an empty one?
Yes, when the previous fit-out does not match your use. You pay to demolish what you cannot keep, and demolition plus disposal is real money before a single new thing is built.
What should I check first on a walk-through?
Restroom accessibility, whether HVAC is actually distributed, electrical panel capacity, and where drains exist versus where you need them. Those four account for most of the expensive surprises.
Who should walk the space with me?
Whoever is going to build it. An agent can tell you about the lease; only the contractor can tell you what finishing it costs, and that is the number that decides whether the deal works.
About the author
Yelp
General contractor, Royse City, TX
Commercial tenant improvement, build-out and renovation, and residential outdoor living, fencing, additions and high-end kitchens and baths across Dallas-Fort Worth and East Texas.