Delivery Condition

Delivery condition is the written description of exactly what the space will look like when the landlord turns it over to you. It is what gives words like shell, warm shell, or vanilla box their actual meaning in your deal. A strong delivery clause lists specifics: HVAC in working order, roof watertight, electrical capacity, restrooms, floors, and systems in a defined state.

The danger is accepting a vague phrase and assuming the best. If the lease just says delivered in as-is condition, you may inherit an old HVAC unit, insufficient power, or code problems that quietly become your cost.

Delivery condition is one of the most important and most overlooked clauses in a lease. It decides what you inherit and what you have to fix on your own dime. Never accept a vague as-is handover for a healthcare space; spell out the exact condition and systems the landlord must deliver before your build-out starts.

A practice refuses an as-is delivery and instead negotiates a clause requiring working HVAC, a watertight roof, and electrical service to the suite. Three months in, the HVAC fails, and because of the delivery condition, it is clearly the landlord's responsibility to repair, not the tenant's.