Don’t Rush to Vanilla Shell a Space

When a tenant moves out and leaves a space looking rough, many landlords immediately think: Let’s vanilla shell it. But before you spend thousands fixing up a space, slow down and test the market first.

My rule? Give it about 90 days.

List the space exactly as it is and start showing it. If it’s a former Subway, call it a “former Subway.” Everyone knows what that looks like, and some prospects won’t care because they’re planning to gut it anyway. If a tenant is willing to take the space as-is, you may save yourself a lot of money. And if they want you to fix it? That’s a negotiation. You can always say, “If you want it cleaned up and renovated, the rent will be higher.”

Now, if you’ve shown the space 15–20 times and every prospect complains about the condition, that’s your signal. At that point, investing in repairs or creating a vanilla shell might make sense to help the deal get across the finish line.

This same strategy applies when you have multiple rough spaces. Don’t fix them all at once. If you have ten ugly vacancies, maybe you vanilla shell two—just enough to create spec spaces and test the market without overspending.

Rockstar Tip:
Always test demand before spending money. In leasing, sometimes the best improvement you can make is simply putting the space on the market and seeing who bites.

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