Build to Suit Explained

If you are having a difficult time finding space for your business or if you have a unique or specialized need that not many buildings in your area accommodate, build to suit is a great option for you.

A build to suit is a building that has been specifically constructed to meet the design, location and physical specifications of one major user. A business considering build to suit has several ways they may go about this opportunity. The most common are:

* The business can assumes the responsibility of acquiring the land; hire a general contractor for planning and construction; and assume the financial liability. Upon completion, the business owner may continue ownership of the new building or sell the building to an investor and lease it back. This is known as a sale-leaseback transaction.

* The business owner approaches a developer with his/her requirement and then transfers the construction, ownership risk and potential profit to the developer.

* A combination of the previous two. This would include shared equity and joint venture arrangements.