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4 Things to Consider with a Build to Suit Development

A build to suit is a building that is, built to suit. A build to suit is specifically constructed to meet the design, location and physical specifications of one major user.

That's the biggest advantage for tenants looking into build to suit projects - it's designed and built based on their specifications. Therefore, the tenant has significant input on the design and layout, which helps to maximize space and efficiency.

But, before tackling a new build to suit project, there are a few important elements to consider. Let's take a look at four of them.

>> your build to suit questions answered

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1) Build to suit development can allow for a greater rate of expansion

If a tenant considers a build to suit option using a commercial developer, it will help expedite the development process. Using a preferred developer who understands your approach can significantly benefit your business. It can:

  • Cut down on inefficiencies and time lags in finding pre existing buildings that meet your exact specifications

  • Help you grow at a faster pace than a tenant may be able to allocate the proper funds and financing. (This applies if your business is considering expansion and thinking of allocating your own funds to construct a new property)

A build to suit developer can help you reach those goals quicker and alleviate the development risk from your business.

 

2) What cost difference are you willing to accept

The Value of the Build to Suit Process

Build to suit developments can be more of a time and cost commitment than say leasing an existing space. However, space and efficiencies may offset the higher costs of a build to suit. It’s just a matter of which is more important to the tenant in the long run.

 

3) A build to suit approach usually means longer lease terms

Build to suit developments are not short term plans. A tenant must commit to a longer-term lease deal in order to justify a developer’s investment. If a project is more specialized, it may become more important for the lease term to be longer in order to fully amortize the landlord’s investment in the property.

 

4) Provide as much detail as possible

From design specifications to construction parameters to rent and timing of completion, there should be a mutual understanding between developer and tenant of what is expected. Budgets, detailed scope of work - laying out as much detail will help make the process much more efficient and successful. 


Build to suit development through an experienced developer allows businesses to keep their focus on growth. The approach puts the burden of the development process on the developer, while also ensuring a tenant’s new facility is optimized to meet their demands and image.

Just make sure your business is in tune with the build to suit process and is prepared to take the next steps.

Tags: Build to Suit Commercial Real Estate Development

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