Full Definition
A powered shell is a building where the developer or owner has delivered the structure, the site, and a committed electrical service, while the tenant finishes the interior, including mechanical systems, racks, and cooling. The value driver is the secured utility capacity, which can take years to obtain. Terms vary, so the contract should state which items are delivered, who holds the utility agreement, and who funds the fit-out.
Why It Matters
Investors underwrite a powered shell on tenant credit, lease term, and the durability of the power commitment rather than on building finish. Confirm the utility capacity in writing and understand fit-out obligations before pricing it like a conventional net lease.
Sources & Further Reading
Educational summary, not tax or legal advice.
Related Terms
NNN Lease (Triple Net Lease)
A commercial lease where the tenant pays property taxes, insurance, and maintenance on top of base rent — making the landlord's income almost entirely passive.
Cap Rate (Capitalization Rate)
The ratio of a property's Net Operating Income to its purchase price, expressed as a percentage. The primary metric for comparing commercial real estate investments.