Grey Box vs White Box vs Turnkey
Understanding office-space condition before lease negotiations begin.
Click the infographic to view the original LinkedIn post.
There are still a lot of grey areas and confusion in the market around what a Grey Box, White Box and Turnkey office actually mean. This ambiguity can result in tenants carrying costs they should not be carrying. With office rentals starting to tick up again, tenants are looking very closely at what landlords are offering for their hard-earned money.
Tenant Installation (TI) Allowances are also often falling far short of the true cost of fit-outs today. In some cases, perfectly usable existing layouts are stripped out and white-boxed when they could have been reused or adapted. The result can be wasted money, avoidable delays and frustrated tenants.
Brokers have an important role to play in clarifying these definitions and ensuring landlord and tenant start negotiations on transparent terms. When expectations are not aligned, one party inevitably loses and long-term relationships suffer.
Grey Box — Shell & Core
What tenants usually get
- basic structure
- windows and external doors
- electrical feed to a DB board
- water and sewer connection
- fire protection
- concrete floor
- no ceilings and limited or no lighting
- no internal offices, kitchen or finishes
What this means
The tenant carries the full cost of the internal fit-out — partitioning, ceilings, lighting, flooring, HVAC, joinery, power points, data and more. Rental is usually lower, but the tenant’s capital-expenditure responsibility is higher.
White Box — Ready-to-Paint
What tenants usually get
- ceilings installed
- proper lighting
- finished walls
- basic flooring or sealed screed
- basic services connected
What this means
The tenant still designs the office layout, but the landlord provides a minimum level of readiness before the tenant-specific fit-out begins.
Turnkey — Fully Fitted
What tenants usually get
- reception
- boardrooms and meeting rooms
- kitchen
- flooring
- full lighting and power layout
- partitioning
- HVAC and finishes
What this means
Rental may be higher, but the tenant has far less capital outlay and can move into a substantially complete office.
Why this clarity matters
Tenants rely on brokers to protect their interests. When definitions get blurred, tenants can end up paying for items they assumed were landlord obligations, or they can sign leases without understanding the true cost of occupation.
A well-informed tenant makes better decisions. A transparent landlord builds stronger relationships. And a broker who educates both sides creates a genuine win-win.
The industry would benefit from more consistent definitions so that everyone starts negotiations from the same understanding.
“Education reduces friction. Clarity builds trust.”
Need help evaluating an office offer?
If you are a tenant or landlord and want help assessing the condition of a space, the fit-out responsibility, or what should and should not be included in an offer, Shalan Properties can assist with a practical review before lease terms are finalised.