In commercial real estate, a white box construction finish provides tenants the opportunity to build out their own space. They are good options for business owners that want the freedom to customize their space. If you are a new business owner looking for the perfect commercial property, you’ll likely hear the term “white box construction” frequently when new buildings are being discussed. Here’s what you need to know about white box properties!
White box construction is a type of finish used in construction that includes an unfinished interior. The interior doesn’t include interior walls outside of code-required restrooms, paint, flooring, or extra plumbing fixtures. When you first hear about white box properties, you might wonder why anyone would want to buy an unfinished property.
However, it allows tenants to transform the space into virtually anything and typically comes at a lower price. White box construction is good for landlords that need to quickly find a new tenant and for tenants that want creative freedom. White box construction finishes do come with HVAC systems, plumbing, lighting, and basic electrical wiring. The building is also constructed to meet proper regulations and code.
It’s important to take into consideration that if you are renting a white box space, it will take some time before you can start business. Often times, the lease agreement will specify what improvements need to be made before you can officially claim occupancy of the space. Property managers offer tenants an allowance for only vital improvements.
White box construction does the minimum amount, so there won’t be any flooring, interior walls, or even paint sometimes. You are then responsible for filling in the space as you wish, adhering to any limits and regulations listed in the lease agreement. You want to make sure that the lease agreement is as clear and detailed as possible to avoid any confusion and legal issues down the line.
Want to find an ideal location for your growing Maryland company? At Newspace Commercial, we fully represent the tenant looking to find the perfect commercial space. Born from AJ Properties, an Anne Arundel County based commercial real estate firm, Newspace Commercial is designed to focus solely on Tenant Representation services, ensuring that you find your perfect business space, avoid mistakes, and negotiate the best deal. For more information, visit our website www.newspacecommercial.com. To contact us, give us a call at (410)-218-1372!