Vanilla Shell

Landlords are supposed to complete their construction responsibilities prior to turning the space over to the tenant.

Please pay special attention to what the construction exhibits states within the lease.

Following are examples of what the Landlord and Tenant may consider as an acceptable Vanilla Shell.  Please note the differences.

Landlord Outline of an Acceptable Vanilla Shell

Description of a Landlord's Work Responsibility

Complete store front, including front door.

Concrete slab ready to receive vinyl tile.

Demised lease space to be sheet rocked, taped and spackled from the slab to the drop ceiling. Ready to paint.

Bathroom to include toilet, sink and electric water heater.

Rear service door with lock and key, if required by code.

Electrical service to space.

Complete HVAC system, including ductwork. Unit to be sized, to no less than one ton per each 500 square feet of gross floor area.

2’ x 4’ acoustical ceiling at 9 foot minimum height.

2’ x 4’ electrical light fixtures to provide 70 foot candle illumination.

Landlord to provide wall between sales and stockroom, which will have a door, lock and key.

Sprinkler system if required by governmental agency. Should a fire protection system be required, Landlord shall have the option to terminate this lease if the cost, in Landlord’s judgment, is unreasonable.

Any items not specifically listed as Landlord’s work above shall be the responsibility of the tenant.

Tenant Outline of an Acceptable Vanilla Shell

Plans for the Finish
Tenant will provide detailed plans for the finish of the store.
The Landlord will be responsible for obtaining the building permit for their work and for compliance with all codes with respect to their work. Tenant will be responsible for obtaining his/her own permit to complete store from Landlord shell.
All work done by tenant or Landlord will comply with local, state and national codes and done in a good workmanship-like manner using new materials.

Landlord will allow tenant to install tenant’s federally registered and recognized exterior identification signage. Tenant will supply and install tenant’s logo sign(s). The Landlord must provide electrical connection for the sign(s). Landlord will permit tenant to install interior signs within the storefront window area. Signs will be suspended from the ceiling no more than 12” back from the storefront glass.

Trade Hardware and Fixtures
Tenant will supply and install all trade hardware and fixtures.

The Landlord, at Landlord’s expense, will do any demolition required to prepare the store for construction, including but not limited to, all interior walls. All trade fixtures and property of previous tenants including the removal of all old flooring, materials and signs shall be removed by Landlord.

Concrete Slab
The Landlord will supply a concrete slab. If existing, Landlord will put into a like-new condition with all cracks and depressions filled and all floor coverings removed. Slab must be sealed to prevent water from entering premises.

Electrical In Slab
The tenant will do any cutting or patching of concrete floor required to install the tenant’s electrical requirements. Landlord will allow tenant to do this work.

Electrical Service
The Landlord is to provide electrical service to the rear of the space. This service to be a minimum of 100-amp service. All transformers, service conduits, connectors and panels are to be supplied and installed by the Landlord. A panel capable of handling 24 circuits will be provided by Landlord. Landlord to install duplex receptacles on all demising walls one every 15’ or per code if more. Landlord will install all breakers required to operate and control all Landlord supplied outlets and equipment. Landlord will install any required exit signs and/or emergency lights to code.

Florescent Fixtures
The Landlord is to completely supply, connect and put in working order all 2’ x 4’ four lamp florescent fixtures with energy saving electronic ballasts and T8 lamps as shown on the plans. Specifications will be submitted by tenant and approved by Landlord. Landlord will provide a minimum of one light fixture per 75 square feet of total leased area.

Decorative Lighting
The tenant shall furnish and install tenant’s decorative lighting package.

All by Landlord. If existing, Landlord to warrant storefront entry and warrant that it meets all code requirements. Landlord also accepts responsibility that storefront is watertight, structurally sound and sealed to prevent insect access.

Partitions Interior/ Stock Room Walls
The Landlord will provide one (1) interior partition “sales to stock room wall” with one door 3’– 0” c 6’– 8” solid core with hardware installed under tenant’s plan. This interior partition to be a minimum of 10’ high built of metal or wood studs 16” on center and covered with 5/8” fire rated (type ‘X’) drywall, taped and finished both sides ready to receive paint. Landlord shall extend walls from the floor to the underside of the roof decking.

Floor Coverings
Tenant will supply and install as shown in tenant’s plans.

Painting and Wall Covering
Landlord shall paint all visible surfaces with one coat of primer and two coats base Pratt and Lambert white point or equivalent.

The Landlord is to supply and install a new 5/5” 2’ x 4’ lay-in ceiling in 100% of the demised premises at 10’– 0” A.F.F. as shown on the tenant’s plans and specifications. Ceiling to be Armstrong quality type, white fissured and matching grid. Existing ceiling of prior tenant must be removed and replaced unless Landlord obtains tenant’s written approval for existing ceiling to remain.

HVAC: (Heating, Ventilation, and Air Conditioning)
The Landlord is to furnish and install a complete HVAC system. The system must be minimum of one ton per 350 square foot of total leased area and include all ductwork, diffusers, power wiring, control wiring and roof cuts. All areas of the store must be air conditioned including stockroom. All equipment to be new or like new condition with a three (3) year parts and labor warranty. Exception will be the compressor which will require a five (5) year warranty.

The Landlord will provide telephone conduit and pull wires to the demises premise. Conduit to be located next to the electrical panel.

Sprinkler System
If required, the Landlord will supply a complete sprinkler system in accordance with all governing local, state and federal codes to a layout congenial with the tenant’s drawings. Sprinklers are to include all mains, extras, heads and alarms that may be required for the complete system.

Rear Door Service
The Landlord is to supply a rear service door to code complete with fixed pin hinges, door lock and panic hardware.

Toilet Room
The Landlord will provide toilet room(s) per all governing local, state and federal (ADA) codes. The toilet room(s) to consist of a toilet, sink, ten-gallon water heater, mirror, towel holder, toilet paper holder, grab bars and soap dispenser.

Tenant is not to be charged for “extras” or what is commonly referred to as “Landlord Chargebacks” without prior written authorization and acceptance of such costs by tenant.

Substitutions of Materials
Subject to tenant’s prior written approval.

Store to be turned over to tenant broom cleaned with all labels, stickers, paint and wrapping materials removed from windows and floors as to require only normal washing and cleaning for opening of business.

The Landlord will give to the tenant any warranties or guarantees on Landlord supplied equipment including HVAC. The Landlord will guarantee all work performed by Landlord for a period of one (1) year from turnover.

Start of Tenant’s Work
Tenant will not be required to start his work until the Landlord has finished his work. Landlord is required to give tenant seven (7) days written notice of turnover of space.
Certificate of Occupancy
Tenant will be responsible for obtaining from the city or local authorities a Certificate of Occupancy to open his/her store. The Landlord warrants that their work, whether completed or not, will not interfere with the tenant obtaining a Certificate of Occupancy and opening his/her store. Landlord will reimburse the tenant for any and all costs incurred due to not being able to obtain a Certificate of Occupancy and open his/her store due to Landlord’s work.

This last Vanilla Shell description represents the worst description of the Landlord's work we have ever seen. This description, below, was taken from an actual lease.
Exhibit B
Landlord’s and Tenant Work

LANDLORD: Shall provide a “vanilla” unit which shall only consist of a 200 amp panel, electric, receptacles every 8 feet along walls, two florescent lighting fixtures, a bathroom drywall finish only with one toilet fixture and one sink fixture, one light circuit for bathroom and one for other area, drywalls TAPED AND SANDED unpainted, ceiling “as is” at time of execution of lease.  The existing concrete floor shall remain as is.

Tenant to complete its work within 30 day after execution of lease by Landlord.

TENANTS: It is expressly understood that tenant has FIFTEEN (15) days to deliver its plans to Landlord from tenants unilateral execution date.  It shall be further understood that this is a material inducement for Landlord to execute this lease.  Time is of the essence.

Landlord shall, within 10 days of receipt of the plans from tenant as provided for above, approve said plans or comment on same whichever the case may be.  Tenant shall resubmit plans as required in a timely manner until approved by Landlord.

TENANT shall be responsible for work provided for in EXHIBIT "C" hereto.
If the Landlord tries to “Turnover” a Vanilla Shell that does not conform to the construction exhibit in the lease, it may be rejected.

See an example of a Rejection Letter here.

Most Landlord’s will turn the space over to the Tenant conforming to the Vanilla Shell construction exhibit in the lease.

See an example of an Acceptance Letter here.
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