Turnkey Vs Shell Allowance Calculator

Landlord delivery splits between turnkey and allowance. This calculator compares.

Sqft

Turnkey cost $/sf

$/sf

Shell allowance $/sf

$/sf

Tenant overage $/sf

$/sf

Landlord markup %

Landlord savings (allowance)

$543,600

Turnkey landlord cost

$1,713,600

Allowance landlord cost

$1,170,000

How the math works

Turnkey cost = sqft × cost × (1 + markup). Allowance = sqft × allowance. Delta is landlord capital efficiency.

On a $85/sf turnkey with 12% markup vs $65/sf allowance, the landlord saves roughly $20-25/sf capital. On 18k sf that's $360-450k preserved — enough to matter for deal economics or returns. Tenants still get build-out, just with their own risk.

How to Use

Enter sqft.
Enter turnkey cost $/sf.
Enter shell allowance $/sf.
Enter tenant spend overage $/sf.
Enter landlord markup %.
Read path comparison.

Frequently Asked Questions

Turnkey path?

Landlord delivers completed space; tenant moves in. Landlord controls contractors, finish level, schedule. Cost premium 10-15% over allowance path due to single-prime inefficiency and no tenant value engineering.

Allowance path?

Landlord contributes dollars; tenant builds own space. Tenant controls quality and schedule. Savings 10-15% typical from tenant value engineering. Requires tenant capability and time.

When each wins?

Turnkey: first-time tenants, simple layouts, landlords with construction arm, quick move-in. Allowance: sophisticated tenants, complex build-outs, creative buildout needs, landlords preferring capital preservation.