Finding The Right Fit In Commercial Real Estate
When you’re looking for new clothes, the right fit can be tough to find. Often, stores lack just the right style, or the sizing is off. For the perfect look, some will turn to a tailor; clothes made just for you are sure to fit and more likely to last.
The same might be said of office space.
While business owners may satisfy their requirements by leasing available office space within their market or purchasing and renovating an existing structure, a build to suit lease allows them to create a new facility custom-designed to meet their specific needs – all without the capital expense of building ownership. This type of lease arrangement, a business works with a real estate developer to build a tailored facility on a preferred site, then leases the completed space from the developer.
The advantages of a build to suit lease extend beyond limiting capital expenses. Business owners have the opportunity to expand their location choices and ensure site efficiencies. What’s more, the developer can include state-of-the-art energy systems and technology to manage utility costs. Plus, the building can be customized to reflect the image and style of the business, which helps attract and retain talent, and boost productivity.
It is worth noting that a build to suit lease is designed to be a long-term solution for businesses, and lease commitment is often required to secure proper financing. The process of building a custom-designed space can also be time-consuming, often taking several years.
While a build to suit lease – like custom-tailored clothing – is a more expensive option than leasing available office space, the costs may be offset in the long run. Office space efficiencies, lower operating costs and a building that boosts the overall image and appeal of a business are often worth the investment.
Business owners who wish to have an office building designed to fit their unique needs should weigh the benefits of a build to suit lease against the disadvantages, and carefully evaluate what the current market holds to find the right solution. Contact the professionals at Intelica Commercial Real Estate to learn more about the pros and cons of a build to suit lease agreement.