A turnkey build-out is a lease arrangement in which the landlord delivers space fully finished and ready for immediate occupancy, with all construction and improvements completed before the tenant takes possession. This represents the most complete form of landlord work, requiring the tenant to specify their exact needs upfront since design decisions are finalized before move-in.
Turnkey vs shell or as-is delivery
| Delivery type | Condition at handover |
|---|---|
| Turnkey | Fully finished, ready for immediate occupancy |
| Landlord work (partial) | Some improvements completed, tenant may finish some scope |
| As-is / shell | Existing condition, tenant responsible for all improvements |
What to watch for before committing
Complete specification upfront
Provide highly detailed specifications before construction begins, since changes after a turnkey project starts are typically expensive and disruptive.
Finish quality and material specifications
Get written specifications for exact materials, finishes, and fixtures to be used, not just general descriptions.
Firm delivery date commitment
Negotiate a firm delivery date with penalty provisions if the landlord fails to deliver a truly finished, move-in-ready space on schedule.
Final walkthrough and punch list process
Establish a clear final walkthrough and punch list process before accepting the space as complete.
Cost premium consideration
Recognize turnkey delivery may come with a rent premium reflecting the landlord's construction and design management effort.
Post-occupancy warranty terms
Confirm what warranty coverage applies to the completed improvements after you take occupancy.
When you need to know this
- Wanting a move-in-ready facility — minimizing your own construction management involvement entirely
- Time-sensitive occupancy needs — avoiding the delays inherent in managing your own buildout process
- Standardized space requirements — fitting well-defined, common needs the landlord can finish without extensive customization
- Evaluating buildout delivery options — comparing turnkey against landlord work or a cash TI allowance approach
Frequently asked questions
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