Every office search eventually becomes a construction question. Can we use the space as it is? What would we change? What would it cost, and how long would it take? The answers depend on the condition of the space and on what your team needs, and they often decide which space is the better deal.
Space conditions, in plain terms
| Condition | What it means |
|---|---|
| Raw / shell | Little or nothing built. Structure, core and base systems, sometimes with previous work demolished. |
| White box | A clean, basic starting point: finished walls, ceilings and lighting, but no layout. Definitions vary by landlord. |
| Second-generation | A previous tenant’s build-out, with offices, rooms and finishes in place, used as is or adapted. |
| Prebuilt | A new installation built by the landlord to a general layout before a tenant is signed, usually unfurnished. |
| Furnished / plug-and-play | Built and furnished, sometimes with cabling and IT in place. |
Terms are used loosely. Ask exactly what will be there on the day the space is delivered.
Three paths: take it, refresh it or rebuild it
| Take it as-is | Refresh it | Rebuild it | |
|---|---|---|---|
| What it involves | Move in with the existing layout; furniture and IT only | Paint, flooring, lighting, some walls, rooms repurposed | Demolition and a new layout, often with MEP changes |
| Typical fit | Prebuilt, furnished or good second-generation space | Second-generation space that mostly works | Raw, white box or a layout that doesn’t work |
| Schedule | Shortest | Moderate | Longest |
| Design control | Lowest | Some | Full |
| Permits | Rarely | Sometimes, depending on scope | Usually |
| Budget exposure | Lowest | Moderate | Highest, and most sensitive to change |
| When it makes sense | Speed matters and the layout fits | The bones work but the space needs to feel like yours | The company needs a specific layout, or no built option fits |
General comparison. Scope, building and landlord rules change the answer.
Start with a test fit
A test fit is a quick layout of your program, meaning your seats, offices, rooms and shared space, on a specific floor. It shows how well the space fits, what would need to change and, with early pricing, roughly what it would cost. Doing test fits on your finalists before the letter of intent is the best way to compare spaces that need different amounts of work.
What drives cost and schedule
- Demolition. Removing an existing build-out adds cost and time, and can reveal conditions no one expected, particularly in older buildings.
- Mechanical, electrical and plumbing (MEP). Moving or adding HVAC, electrical capacity, kitchens and restrooms is often the most expensive and time-consuming part of the work.
- Permits and filings. In New York City, most work beyond minor alterations requires filings with the Department of Buildings. Your architect or expediter will confirm what your scope needs.
- Long-lead items. Mechanical equipment, specialty lighting, glass and some finishes can take longer to arrive than the rest of the job takes to build.
- Building rules. Work hours, freight elevator access and landlord approvals shape the schedule.
- Furniture, AV and IT. Usually outside the construction contract, but on the same critical path. Plan them together.
Landlord work vs. tenant work
Who pays for construction is part of the lease negotiation. The landlord may perform an agreed scope before delivery, provide an allowance toward work the tenant performs, or both. Anything beyond the landlord’s contribution is the tenant’s cost. The work letter in the lease sets out who does what and to what standard. See how tenant improvement allowances work.
Renovating while you occupy the space
It can be done, usually by phasing the work, doing noisy work after hours or moving teams temporarily. It is slower and more expensive than working in an empty space, and it asks more of the team. It is most common when renewing: see renew or relocate.
When to start construction planning
Before you sign. Construction planning belongs in the search, not after it: test fits and early pricing on the finalists, an understanding of what the landlord will deliver and fund, and a realistic schedule for your move-in date. Once the lease is signed, the scope and the landlord’s contribution are largely fixed.
Before choosing a path
- Test fit on each finalist floor
- Early pricing for take-as-is, refresh and rebuild options
- Landlord work, allowance and work letter terms
- MEP capacity: HVAC, electrical, plumbing
- Permit requirements for your scope
- Long-lead items and their order dates
- Furniture, AV and IT plan and budget
- Building work rules and approval timelines
- Restoration obligations at lease end