News & views of the industry we love
back to resources
When a company decides it’s time to open another location, it’s not always a “one size fits all” solution that is the most ideal. In an especially tight or seller’s market, pursuing a single-tenant build to suit development may be the attractive answer.
However, if you’ve ever heard rumors such as owners lose all control in a build to suit, you may have an incorrect picture painted in your mind with misconceptions surrounding the topic.
So, before shying away from a new opportunity that may seem to have an irreparable “cons” list, see below for ways to turn lemons into lemonade, so to speak.
Misconception |
Reality |
|
1. It’s overpriced and therefore, almost impossible to have your credit approved.
|
|
|
2. This type of development calls for a long-term commitment that most businesses don’t want.
|
|
|
3. The project timeline could take many years of uncontrollable delays and the main decision-maker won’t be the owner anymore.
|
|
|
4. Build to suits are not for everyone and not for every time during a company’s life cycle.
|
|
As mentioned, what may seem to be the pitfalls associated with build to suit opportunities may not even be detrimental to your business. Also, remember that a development company can greatly help facilitate between the landlord and tenant to construct a successful build to suit that hits all the requirements the first time around. There are many advantages of hiring a developer, including the fact that they will acquire, take ownership, and manage all the risk of the property’s construction.
