The base case
For a 100-seat office (~7,500 sq ft) in BKC, bare-shell rent runs ~₹385 /sq ft/mo. Warm-shell in the same tower now runs ~₹460 — an 18–20% premium. Fit-out for a 100-seat office typically costs ₹28–35 lakh in shell terms.
When warm-shell wins
Warm-shell wins when you value speed-to-occupancy, when your headcount is likely to expand (avoiding a second fit-out round), or when your lease horizon is 3 years or less. Below 3 years, the amortisation math rarely favours a bare-shell CapEx.
When bare-shell wins
For lease horizons of 5+ years with stable headcount, bare-shell + tenant fit-out is materially cheaper on a total-cost basis. Insist on a fit-out contribution (typically ₹800–1,200 /sq ft) and a rent-free period (usually 4–6 months).
Key takeaways
- Warm-shell wins short leases and fast go-live
- Bare-shell wins 5+ year leases with stable headcount
- Always negotiate fit-out contribution + rent-free even in warm-shell deals