Shell development is the process of creating a building, or shell, that is a blank slate for tenants to improve.
The building owner can’t know precisely what types of spaces tenants will require, and it would be costly to try without knowing.
JBC General Contractors specializes in shell development for owners and their tenants. Here’s everything you need to know about the building process.
Why Do Real Estate Investors Pursue Shell Development?
The goal of a property owner is to find the best possible tenant to make use of the property. When first considering the initial construction, you have no idea if the future resident will be a doctor, a gym owner, a tech company, and so on. Each of these particular clients is going to come with their own needs and expectations for the property.
JBC General Contractors can help property owners get started on the project by developing the shell, or the base build. This includes everything that a structure needs to stand, including walls, windows, and roofing. Contractors and landlords may also work together to build staircases, elevators, loading bays, etc.
We can also assist with the subdivision process, paving roadways and parking lots, landscaping, necessary electrical systems, insulation, and various safety features.
It also speeds up the real estate process as you allow the contractors to build the shell while you search for a viable tenant. With these basic necessities, the property is prepared for future tenants to come in and create a build-out plan that is right for them. This allows them to customize the space and ideally pursue a long-term lease agreement with the owner.
Who is Responsible for Shell Development?
Landlords typically pursue shell development with their contracting team of choice. This makes them responsible for the cost of the structure and driveways before the future tenants even see the property. From there, landlords may supply their own materials for new tenants to use in their build-out.
Alternatively, landlords and tenants will typically negotiate over the expenses for the inside build-out. By starting with only the shell development, property owners will save costs by spending only what they need to to satisfy tenant needs. You don’t want to waste money by having your contractor build something inside only to tear it down later.
Shell and Core Development – JBC General Contractors
JBC General Contractors has been assisting landlords and property owners in McAllen, Texas, for decades. We’ve found ways to expedite our processes that help you get your building up and ready sooner. Our close relationships with material suppliers allow us to get you the best rates possible while delivering unmatched quality.
We’ll assist with shell development and stick to your schedule so that you can focus your efforts on leasing the space. The sooner you get up and running, the sooner you can start generating revenue.
To inquire more about shell development and build-outs, call JBC General Contractors today at (956) 316-0777.