Short answer
A bare shell office is handed over with only the structure, core and building services up to the floor, so the tenant pays for almost the entire fit-out. A warm shell office is a bare shell with centralised air conditioning and power backup provided by the landlord, and everything else is done by the tenant. With record new office supply arriving in 2026, tenants have more choice, so this is a good time to negotiate what the landlord delivers before you sign.
Why this question matters now
India's large office markets saw record completions in 2026. Industry trackers reported in the business press counted between roughly 41 and 49 million sq ft of new completions in the top cities in the first nine months of the year, with the third quarter alone setting a quarterly record. Much of it is in Bengaluru and Hyderabad.
The trackers do not agree on everything. One reported that the national vacancy rate rose in the July–September quarter for the first time in about three years. Another showed vacancy lower than a year earlier, and rents rose in most cities. What they agree on is that a lot of new, empty Grade A space is coming to market, much of it bare or warm shell. That gives tenants a stronger hand on the handover condition, fit-out time and landlord contributions, especially in buildings that are still filling up.
Key terms, defined
These terms are not standardised in India. Two landlords can use "warm shell" to mean different things, so always attach a written handover specification to the term sheet.
- Bare shell: structure, façade, building core (lifts, stairs, common washrooms and lobbies) and main services brought up to the floor. Inside the premises the slab and walls are unfinished, with no ceiling, flooring, internal lighting or air-conditioning distribution.
- Warm shell: a bare shell with centralised air conditioning and power backup provided by the landlord. Everything else inside the premises, including ceilings, lighting, flooring, partitions, washroom finishes, fire detection and sprinklers within your layout, electrical distribution, furniture and IT, is done by the tenant.
- Plug-and-play / fully fitted: a ready office with interiors, furniture, IT cabling and services in place. This is often supplied by a landlord or a managed-office operator, with the cost recovered in rent.
- Fit-out allowance or landlord contribution: money or work the landlord agrees to provide towards the tenant's fit-out.
- Rent-free fit-out period: the time after handover during which the tenant fits out without paying rent.
Bare shell vs warm shell vs plug-and-play: side by side
| Factor | Bare shell | Warm shell | Plug-and-play |
|---|---|---|---|
| What you receive | Unfinished floor plate with services to the floor | Bare shell plus centralised AC and power backup | Fully fitted and furnished space |
| Tenant fit-out scope | Everything | Everything except the centralised AC and power backup supply: ceilings, lighting, partitions, finishes, furniture, IT, AC distribution inside your layout | Minor changes and branding |
| Design freedom | Highest | High, but the AC supply points are fixed | Low |
| Upfront capex for tenant | Highest | Medium to high | Lowest; cost sits in rent |
| Typical on-site fit-out time | Longest | Slightly shorter, as the central plant is ready | Days to weeks |
| Risk of paying twice | Low | Low to medium: AC supply points may not suit your layout | High if the layout does not suit |
| Best for | Long leases, specific brand or technical needs, larger floors | Standard office layouts and teams that want the central AC and backup power settled | Short commitments, small teams, uncertain headcount |
The hidden trap in warm shell: paying twice
Warm shell sounds like a big saving, but because the landlord only supplies centralised AC and power backup, the tenant still carries almost the whole fit-out. The risk is in the AC. If the landlord's supply points, duct or pipe stubs and zoning do not match your plan, your contractor may have to alter or redo them. You then pay for rework, and part of the landlord's work is wasted. This happens most with:
- Layouts with many cabins and meeting rooms, which need their own AC supply, return air and zoning.
- Server or hub rooms that need dedicated cooling and power.
- Large pantries, cafés or labs needing extra exhaust and ventilation.
- Floors where the power backup allocated is less than your connected load.
The fix is simple: get a test-fit layout done before you agree the handover specification. Then ask the landlord either to deliver the AC supply to suit your layout, or to confirm the capacity in writing so your design can work around it.
How the choice changes your fit-out budget
Officea Design & Build's published 2026 rate card is per sq ft, with GST extra. The Delhi, Gurgaon, Noida and Chandigarh rates are Basic ₹1,800, Medium ₹2,200, Good ₹2,600 and High end ₹4,500. In Bangalore, Mumbai, Pune, Hyderabad, Chennai and Goa they are Basic ₹2,000, Medium ₹2,400, Good ₹2,900 and High end ₹5,000.
Use the rate card as your starting point for a bare shell floor. For warm shell, the saving equals the value of the landlord's centralised AC and power backup that your layout can actually use. That is why an itemised BOQ matters more than a headline per-sq-ft figure.
| Example: 10,000 sq ft, Medium specification, Gurgaon | Indicative figure |
|---|---|
| Bare shell fit-out at ₹2,200 per sq ft | ₹2.2 crore + GST |
| Warm shell | ₹2.2 crore minus the value of the landlord's centralised AC and power backup that you retain, item by item from the BOQ |
| Plug-and-play | Little or no upfront fit-out; the landlord's or operator's fit-out cost is recovered through higher rent |
The bare shell line is simple multiplication. The warm shell saving depends entirely on what the landlord delivers and what your layout can use, so it should be priced, not assumed.
What to negotiate while supply is high
- A written handover specification. List what the landlord will deliver: centralised AC capacity and how far it is distributed on the floor, power backup capacity and load allocated per sq ft, and who pays running and maintenance charges.
- AC supply that suits your layout, or a cash or rent equivalent for works you do not want.
- Rent-free fit-out time that matches reality. Ask your fit-out partner for a programme first, then negotiate. Bare shell needs more time than warm shell. See our guide to the fit-out timeline and rent-free period.
- Early access. Permission to survey, measure and start approvals before the formal handover date.
- Clear reinstatement terms. Agree in writing whether you must return the floor as bare shell, warm shell or "as is" at exit. This can be a significant cost later.
- Fit-out rules and charges. Check the building's fit-out manual, approval timelines, working hours, deposits and any fit-out supervision fee before signing. Our fit-out terms explained guide covers the vocabulary.
Which should you choose?
- Choose bare shell if you have a long lease, a specific brand or technical brief, a large floor, or a layout heavy on rooms and special services. You get the most control and avoid paying twice.
- Choose warm shell if the landlord's centralised AC and power backup match your test-fit, and you are happy to do everything else yourself. Check the capacity and supply points first.
- Choose plug-and-play if your headcount is uncertain, your commitment is short, or you need to move in within weeks, and you accept a higher rent and less control.
Comparing two or three office options? Officea Design & Build will prepare a costed proposal for your office as a complimentary service.
Where Officea Design & Build fits
Before you sign, Officea Design & Build can survey a shortlisted floor, prepare a test-fit layout and give you an itemised budget for both bare shell and warm shell. You can then take real numbers into the negotiation. After signing, our design-and-build and turnkey teams deliver the fit-out under one contract, with single-point accountability for design, MEP, interiors and handover. We work pan-India from offices in Delhi, Gurgaon, Noida and Bangalore. Landlords can also see how we help on our fit-outs for landlords page.
Frequently asked questions
What is the difference between bare shell and warm shell office space?
Bare shell space has only the structure, core and building services brought up to the floor, so the tenant fits out everything inside. In India, warm shell space is usually a bare shell with centralised air conditioning and power backup provided by the landlord. The tenant does everything else. The exact scope varies by landlord, so get it in writing.
Is warm shell office space cheaper to fit out?
Usually, but only by the value of the landlord's centralised AC and power backup that your layout can actually use. If the AC distribution has to be altered to suit your cabins and meeting rooms, the saving shrinks. Price both options with an itemised BOQ.
What is a plug-and-play office?
A plug-and-play office is fully fitted and furnished, so a team can move in with little or no fit-out. It suits short commitments and uncertain headcount. The fit-out cost is usually recovered through higher rent.
How much does it cost to fit out a bare shell office in India in 2026?
Officea's published 2026 rate card for Delhi, Gurgaon, Noida and Chandigarh is ₹1,800 (Basic), ₹2,200 (Medium), ₹2,600 (Good) and ₹4,500 (High end) per sq ft, GST extra. Bangalore, Mumbai, Pune, Hyderabad, Chennai and Goa are about 10% higher. Actual cost depends on layout, MEP scope and finishes.
How long is the rent-free fit-out period in India?
It is negotiated deal by deal and depends on the size of the space, its handover condition and market conditions. Bare shell space needs more fit-out time than warm shell. Get a realistic programme from your fit-out partner before you negotiate.
What should a warm shell handover specification include?
It should list the centralised AC capacity and how far it is distributed on the floor, the power backup capacity and load allocated to your floor, and who pays for running and maintenance charges. Attach it to the term sheet and the lease.