Vanilla shell value vs TI money
Negotiating a space for a brick and mortar store and the landlord is offering vanilla shell specs and no TI money. The cost of my buildouts are roughly 350K due to our specialization and on my first buildout I realized $30/sqft in TI money.  What would you value these specs at for a 2900 sq ft space? I'm trying to put a dollar figure to it. I'm seeing only 25K at best, more if they put in the meters but they do not mention that.

Vanilla Shell Specifications:  The vanilla shell retail store shall be designed and constructed with the following criteria:

1. Floors: exposed concrete slab on grade
2. Exterior walls; concrete block with drywall over furring side walls, rear wall to remain exposed block. If required exterior firewalls will be 8” concrete block, 4-hour rated, with drywall over 1-5/8” metal furring at interior of tenant space
3. Storefront; standard aluminum framing system (1-3/4" x 4-1/2"), clear anodized with tempered glass floor to 9’-0” a.f.f.
4. Ceiling; 2 x 4 lay-in acoustical with 2 x 4 fluorescent lights at the rate of one fixture for each 100 s.f. of tenant space
5. Roof structure; standard bar joist framing system supported on joist girders or masonry bearing walls
6. Roofing; built-up roof with modified cap sheet system with minimum 10-year manufacturer's warranty
7. Electrical; 120/208V, 220 amp, 3-phase
8. Mechanical; rooftop package units, sized at1 ton per 350 sq ft
9. Plumbing; handicap accessible bathroom(s) to code to each typical retail tenant
10. Doors; one 3'-0" x 7'-0" narrow style storefront doors, one 3'-0" x 7'-0" hollow-core metal rear service door w/peephole, and 3’-0” x 6’-8” hollow-core wood doors for each bathroom
11. Tenant partitions; 1-hour fire rated drywall partitions (6” metal stud framing); paint ready
12. Roof drainage; roof to drain to rear of the buildings and shall be collected with scuppers and downspouts.
13. Exterior design to complement retail exterior design and meet City's guidelines.
14.  Fire sprinkler design provided by fire protection contractor to the G.C-61G provided by architect.
15. Phone and Cable Service; junction box provided at back of building with conduit to the inside of unit
16. Exterior Signage; Conduit to be installed

[{"id": "dqgrjru", "text": "I don't understand your question.  What do we value them at compared to what?  What were the shell specs on your $30 / ft ti allowance deal? Not that this really matters.   What are the allowances and shell conditions for other sites that are comparable?  \n\nIt costs way more than $8 / SF to build to shell (at any level, but particularly one you describe).....  \n\nMost people work the opposite way.  \n\nIf I can lease a space at $x in the condition you describe, and it will cost me $y to build it out, I amortize that over the lease.  \n\nIf another space leases at $z but maybe they won't even pay for hvac/bathrooms/etc there I do the same.  \n\nIf another space offers me $30 / SF I ammortize that too.  \n\nGet to a common cost by amortizing yours or the landlords costs and getting it all to a $ / SF /YR.  This will make your options more clear.  \n\n\n", "replies": [], "depth": 1}, {"id": "dqhaxsa", "text": "TI Money?\n\n* Tenant Improvements?\n* Term Improvements?\n* Tangible Improvements?\n\nWhat does TI mean in your post above?    Thanks.\n", "replies": [{"id": "dqhefp8", "text": "tenant improvements", "replies": [{"id": "dqhfviz", "text": "Thanks for the assist.   ", "replies": [], "depth": 3}, {"id": "dqi9r26", "text": "He got it. Tenant improvements.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dqhic9a", "text": "To assess the value of the TI we would need to understand the proposed  rent vs market rent. Otherwise if everything else is equal, it's costing you exactly what your not getting. \n\nOn a global level, 95% of retail space is facing huge amounts of oversupply. Unless you are in a very hot micro market, take your time and negotiate hard, you have the upper hand.", "replies": [{"id": "dqi9t2u", "text": "I have choices but this location has the best visibility and anchor.", "replies": [{"id": "dqidsdu", "text": "Understood but to evaluate cost you need to provide the alternatives and what they would cost and provide in TI", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dqib9nm", "text": "TI money is expensive. It doesn't appear that way but it is amortized with interest rates double what it would be to get a loan. With no TI money you also have more leverage to negotiate a lower rent. ", "replies": [], "depth": 1}]