All About White Box Construction Business owners looking for commercial spaces often hear words like grey box, vanilla shell, cold shell, or white box, etc., while discussing leasing new construction plans. The proper understanding of such terms is essential so that the tenants don’t get confused and make wrong decisions leading to unnecessary delays and complications.
- While assessing construction bids and negotiating commercial space leases, the parties involved must have a clear understanding of the white box real estate finishes and handle costs and expectations seamlessly.
- What is white box construction? A white box is a real estate idiom for partially finished commercial space or construction that the real estate contractor delivers to the tenant and the landlord.
The term refers to the minimally finished construction space with white sheet-rocked walls, and white ceilings. In short, it is the condition of the commercial space before a landlord or a tenant remodel or finishes it. 
The gray shell is different from the white box Often confusion arises when white box and gray shell are used interchangeably. These two terms denote completely different meanings. A gray shell in the commercial space sector refers to totally unfinished construction.
- What are the provisions included in white box construction?
- Typically, a white box construction follows the following:
- Exterior shell
- It includes the finished or the completed structural construction for the building, including a completed roof as per the design of the landlord, a rear wall, drywall, and others.
- Interior shell
- It includes the drywall separation walls that are insulated and ready for concrete flooring, installing doors, windows, and painting.
- Restroom
A construction must have one or two regulations with vinyl tile floors, and white drywalls as per regulations. As per ADA regulations, the doors must have a privacy lockset.
- Plumbing
- A white box construction consists of all kinds of plumbing connections required for restrooms, starting from the drinking fountain, a janitor’s sink as required by ADA regulations.
- HVAC
- The required diffusers, ductwork, distribution grilles, main truck lines, and other RTU air handlers are installed by the landlord.
- Electrical
- A white box features a blank meter box in the electrical room of the construction building with the following specifications.
- 120/208 v, 200 amp, four-wire, and three-phase service or as available from the vendor
- One or more standard duplex outlets (110v)
- Emergency lighting as per the regulations
- Electrical connection for the restrooms, exhaust fan, RTU maintenance outlet, and front signage for the building
- Electrical wires for cable, phone, and data services
- Fire protection system
- The landlord installs the needed sprinkler system along with the standard brass heads positioned upright to the floor deck with spacing abiding by the fire code.
- The following aspects are not included in the white box construction.
- Up-to-date electrical fixtures
- HVAC system layout modifications
- Cable, telephone, and data wiring
- Security systems
The partially-finished commercial space appeals to tenants and landlords of white box real estate construction. This is because they can see the potential to convert the space into anything customized as per the business needs. Benefits of considering white box? Different tenants possess distinct design and layout ideas that fit their business.
- There is zero waste as there is nothing that the tenants have to move and throw away.
- The design and the build process are faster and thereby it is cost-effective.
- Low-cost construction as the basic finishes are already completed.
- More opportunities to create customized space based on the business needs.
Considerations for white box construction When a white box commercial space is considered, one must understand that it will take considerable time before the business begins. The majority of the time, the lease agreement will mention the improvements and modifications needed to be done before officially occupying the space.
- The tenants of the white box commercial space are offered allowance by property contractors for only making vital and key modifications and improvements.
- One cannot expect interior walls, flooring, or even paints when considering white box construction.
- The tenant is responsible for customizing the space as per their requirements and preferences, following the listed regulations and limitations as mentioned in the lease agreement.
It is important to ensure that the lease agreement is well-detailed and clear to avert any confusion and legal complications. The cost for white box commercial space The expense for white box construction depends on the present size and condition of the area, and the scope of work.
- Security permits, construction, and demolition also determine the total cost of white box construction.
- It is important to identify the scope of work that needs permission before the construction works begin for white box real estate.
- Similarly, a demolition permit is also required taking into account the size of the demolition project and the cost dependent on the same.
To undertake a white box construction, the entire building permit for the following scope of work is required.
- Dropped ceiling installation
- Sprinkler heads relocation and modification
- Installation of lighting
- HVAC system expansion or relocation
- Divider installations for creating smaller office-like rooms
- Exterior wall drywall installation
- Installing exit signs
When a small-scale demolition is considered, the permit costs around $250. A full building permit will cost more than $1000 to $1500. Conclusion In the field of commercial real estate, white box construction offers the tenants and landlords the chance to create their own space.
- It is an excellent option for business owners to customize their space freely as per the requirements of the business.
- A newbie in the field is likely to hear about white box real estate construction frequently.
- Moreover, considering the partially-finished commercial space has time and again proved to be beneficial to the business.
: All About White Box Construction
What is White Box Construction? – White box (also called a vanilla shell or warm shell), in commercial construction and real estate parlance, is a partially finished commercial space that a contractor delivers to the landlord or tenant. The term “white box” comes from the look of a minimally finished space that has white dropped ceiling and white sheet-rocked walls.
Contents
What is a white box finish?
What is a White Box Finish? The term “white box” in construction and real estate signifies how completed and ready a building space is before tenant improvements (TIs). A white box finish signifies a tenant space before (and excluding): flooring (except concrete floors), plumbing and fixtures (other than standard drinking fountains and restrooms), interior walls, paint and wall coverings, electrical fixtures (other than code-required electrical), furniture and any other tenant-specific equipment or office upgrades.
What a white box finish does include is: exterior walls, windows and doors; roofing; standard lighting and electrical; basic heating, ventilation and air conditioning (HVAC); concrete floor; restrooms and drinking fountain; hot water; code fire protection and stairs and elevator. Other words used synonymously with white box finish include warm white box, warm white shell, vanilla box, warm vanilla box, warm vanilla shell, lit shell, plain vanilla shell and additional similar phrases.
Producing a white box may seem like an easy bare-minimum construction project. But a lot goes into it; all components in this case must be built to code and completely ready for TIs to be implemented on the interior – and in some cases even light exterior construction.
Licensing and building permits are required and can differ based on locations and jurisdictions. Obviously a white-box office is not move-in ready for tenants. The TIs are implemented when the lease agreement has been finalized. In fact this is the primary purpose of a white-box finish; it represents a building or office interior for commercial owners to quickly have space ready for tenants to finalize.
With a white-box building or space tenants can easily use a contractor to finish their space into anything they wish. Often landlords will attempt to incentivize new tenant sign-ups by offering benefits such as tenant improvement allowances (TIA). These contribute at least partially to the tenants’ costs to finish the office space to be move-in ready.
- However TIAs typically exclude specialty items such as furniture, fixtures and equipment (FFE) or other tenant- or industry-specific accoutrements for their own businesses.
- Tenant agreements are expected to be finalized prior to tenant space finishing since the landlord doesn’t want to provide TIAs unnecessarily and lose that investment.
Likewise the landlord doesn’t want a prematurely finished space, only then to be required to find new tenants, requesting their own space finishing, if the original tenant backs out of a verbal agreement. BuildRite Construction builds white box finishes, as well as TIs, as standard daily operations for customers.
What is a white box in real estate?
What is a White Box Finish? – Buildrite Construction The term “white box” in construction and real estate signifies how completed and ready a building space is before tenant improvements (TIs). A white box finish signifies a tenant space before (and excluding): flooring (except concrete floors), plumbing and fixtures (other than standard drinking fountains and restrooms), interior walls, paint and wall coverings, electrical fixtures (other than code-required electrical), furniture and any other tenant-specific equipment or office upgrades.
What a white box finish does include is: exterior walls, windows and doors; roofing; standard lighting and electrical; basic heating, ventilation and air conditioning (HVAC); concrete floor; restrooms and drinking fountain; hot water; code fire protection and stairs and elevator. Other words used synonymously with white box finish include warm white box, warm white shell, vanilla box, warm vanilla box, warm vanilla shell, lit shell, plain vanilla shell and additional similar phrases.
Producing a white box may seem like an easy bare-minimum construction project. But a lot goes into it; all components in this case must be built to code and completely ready for TIs to be implemented on the interior – and in some cases even light exterior construction.
Licensing and building permits are required and can differ based on locations and jurisdictions. Obviously a white-box office is not move-in ready for tenants. The TIs are implemented when the lease agreement has been finalized. In fact this is the primary purpose of a white-box finish; it represents a building or office interior for commercial owners to quickly have space ready for tenants to finalize.
With a white-box building or space tenants can easily use a contractor to finish their space into anything they wish. Often landlords will attempt to incentivize new tenant sign-ups by offering benefits such as tenant improvement allowances (TIA). These contribute at least partially to the tenants’ costs to finish the office space to be move-in ready.
- However TIAs typically exclude specialty items such as furniture, fixtures and equipment (FFE) or other tenant- or industry-specific accoutrements for their own businesses.
- Tenant agreements are expected to be finalized prior to tenant space finishing since the landlord doesn’t want to provide TIAs unnecessarily and lose that investment.
Likewise the landlord doesn’t want a prematurely finished space, only then to be required to find new tenants, requesting their own space finishing, if the original tenant backs out of a verbal agreement. BuildRite Construction builds white box finishes, as well as TIs, as standard daily operations for customers.
What are the different parts of white box construction?
What is White Box Construction? 1 Exterior.2 Interior.3 Restroom.4 Electrical.5 Plumbing.6 Heating, Ventilation, and Air Conditioning (HVAC) The landlord will install required air handlers for the RTU, main truck lines, ductwork, distribution grilles, and diffusers.7 Fire Suppression System.
What is a white box or vanilla shell?
A Complete Guide – Stovall Construction, Inc. Business owners searching for new commercial space will usually hear the terms white box, vanilla shell, grey box, or cold shell, in discussions about new construction plans or landlords with spaces for lease. 
Without a proper understanding of these terms, a tenant can get confused and come up with wrong decisions that may lead to unnecessary delays and costly complications. In evaluating construction bids and negotiating commercial leases, all parties need to have the same understanding and definition of the white box and other real estate finishes to avoid miscommunication and effectively manage costs and expectations.
