Leasing a raw commercial space—also referred to as a “shell” space—can be an exciting opportunity to customize your business environment from the ground up. But with a blank slate comes the responsibility of knowing what work is required, who’s responsible for it, and how it will affect your timeline and budget.
At JR Mercantile, we help tenants navigate this process every day. Here’s a step-by-step guide to figuring out what work needs to be done before your doors open:
1. Understand the Base Building Condition
Before diving into your design, it’s critical to assess what’s already in place. Ask your broker or landlord for a base building specification sheet. This outlines what’s included in the landlord’s delivery of the space—typically elements like:
- Concrete flooring
- Exposed ceiling or roof structure
- Exterior walls and glazing
- Utility rough-ins (HVAC, plumbing, electrical)
- Fire suppression systems
This gives you a clear starting point and helps identify gaps between the current condition and your operational needs.
2. Define Your Business’s Functional Requirements
Next, map out exactly how your business will use the space. Ask yourself:
- How many rooms or zones do I need (e.g., reception, retail, kitchen, treatment rooms)?
- What are my electrical and plumbing needs?
- Do I need ventilation, commercial sinks, or specialized lighting?
- What type of flooring, ceiling, and wall finishes are required?
Work with a designer or architect to translate these needs into a space plan. The more specific your vision, the more accurate your cost estimates will be.
3. Engage a Designer or Architect Early
A professional designer or architect will evaluate the raw space and help you create a preliminary layout and design concept. This will not only ensure your vision aligns with code and accessibility standards but will also reveal potential challenges (e.g., HVAC placement, load-bearing walls, or fire code issues) that you may not spot on your own.
They will typically provide:
- A test fit or space plan
- A reflected ceiling plan (RCP)
- Conceptual interior renderings
- Preliminary budget estimates
4. Conduct a Site Visit With Your Contractor
Once you have a layout in mind, bring in a trusted contractor to walk the site. A site visit allows them to:
- Inspect the condition of mechanical, electrical, and plumbing systems
- Identify code compliance upgrades
- Flag any unforeseen construction barriers
- Prepare a detailed scope of work and budget estimate
This is key for aligning your leasehold improvement budget with your actual build-out needs.
5. Clarify What the Landlord Will Provide
In raw space leases, there’s often negotiation around Landlord Work vs. Tenant Work. Will the landlord bring in utilities to the premises? Will they contribute a Tenant Improvement Allowance (TIA)? Understanding this breakdown early allows you to structure your lease accordingly and avoid surprise expenses.
At JR Mercantile, we help you ask the right questions so you can confidently evaluate whether a raw space is the right fit—or too much of a lift.
6. Plan for Permits and Timelines
Don’t underestimate the importance of permitting. Build-outs in raw spaces almost always require:
- Building permits
- Development permits (in some cases)
- Health/fire inspections
- Occupancy certificates
Each of these steps can impact your opening date, so your project timeline should reflect permitting lead times and contractor availability.
Let JR Mercantile Help You Get It Right
Leasing raw space offers flexibility—but it also requires vision, planning, and professional guidance. Our team at JR Mercantile works closely with tenants, designers, and contractors to help you evaluate space potential, avoid costly oversights, and secure terms that support your business’s success.
Thinking about leasing a raw commercial space?
We’re here to help you break it down and build it up. Contact us today at hello@jrmercantile.com or 403-770-3071.