When you're investing in a new office space or commercial building, it is important that you choose something that works well for you. If your company has specific or specialized needs, it can make it challenging. You may find that you want to customize the building to meet your precise needs. Sometimes, it's actually easiest for you to choose a build-to-suit property instead. Before you decide on a method, here's a look at some of the basics of this type of investment.
What Are Build-to-Suit Properties?
For people who are new to commercial real estate, the term 'build-to-suit' may not be clear. Investing in this type of property means working with a developer who will create a plan for a building that meets your company's exact specifications. Then, that developer will implement the plan and build the space that you need. From there, your company will lease the building from the developer or property owner.
Why Consider Build-to-Suit Properties?
There are many benefits to investing in this type of property. For small business owners, it's an opportunity to establish your business in a facility that meets your needs without the huge investment in purchasing the land and building. Here are a few key reasons to consider a build-to-suit structure.
No Location Restrictions - When you decide to invest in a build-to-suit lease, you won't be limited to the properties that are on the market. Instead, you can shop all of the undeveloped plots of land. This opens up a wide range of options for you to select a location for your business.
Space Optimization - When you opt for a building that you can build to your precise specifications, you can design the floorplan to maximize efficiency. Think about putting departments that frequently work together in the same areas so that they can communicate easily. In addition, you can create a dedicated section of the building for manufacturing, warehousing and the like. This streamlines your operations.
Freedom of Brand Identity - Your company's brand identity can be easily worked into the design of a building when you choose a build-to-suit property. You can choose the shapes and designs that represent your products and your company when you have the building built. You can incorporate business logos into the building's layout and maybe even incorporate sculptures into the structural elements.
How Does The Build-to-Suit Process Work?
When you retain the services of a developer for a build-to-suit structure, you'll need to make sure that you come to an agreement on the lease terms. Talk with a few different developers, because each developer will have their own lease terms and some may be more willing to negotiate than others.
Keep in mind that you and the developer will each have some control over what's going into the building. You'll be able to contribute some design information based on what your company needs, but the developer may make some engineering changes if needed to ensure that the building has commercial viability if your lease ends and you move on.
You'll also want to clarify how long the construction process is expected to take. Plan for the move as well as your rent schedule, because the developer is going to want to start seeing rent payments as soon as possible.
Customized, build-to-suit properties are a long-term commitment. Make sure that you understand exactly what you're getting into with the construction process and the lease period. Before you decide to buy an existing building or invest in a build-to-suit option, talk with a contractor for more details about the expectations and the process. This helps you to get the building that's best for your company's needs while also giving you the benefit of a professional's guidance. For more information, go to websites like http://www.claggett.net.Share