Businesses in search of office lease space have a number of options available to them in some commercial markets. One option is building to suit, which is a way for companies to get many of the benefits of a custom building without the prohibitive investment. Tenant representation services work with developers and builders every day to help businesses get what they need most in an office space lease. When buying outright or having a building custom built are not viable options, build to suit for lease may be a workable solution with a great deal of positives.
What Is Build to Suit Office Space?
Build to suit office space is basically new construction that is built to suit the needs of the tenant that will occupy the space. These types of development arrangements are made between commercial investors and clients of tenant representation services looking for office space, which is beneficial for both parties. Build to suit office spaces are long-term lease arrangements that essentially offer a company the benefits that would come with building their own space without the huge financial investment that many companies cannot afford.
Benefits of Build to Lease Office Space
Considering that a build to lease office space is almost the same as having a building custom-built, tenant representation services contend that there are many advantages to this type of arrangement for most companies, such as the following:
- Look and Location - Build to suit office lease space offers companies the option to choose their preferred building sites, then work with architects and designers to construct the building they need it to be. This can be important for accessibility, convenience, brand identity, and a variety of other reasons. Build to suit alleviates the need to drastically improve an existing space to make it look a certain way or fit a company’s space requirements.
- New Construction and Technology - Building to suit is new construction, which means better, more current architectural design with the latest and most improved technology. Efficiency, environmental impact, and comfort can all be included as necessary in new construction without the problem of expensive upfitting or renovations to make a building more energy efficient.
- Affordable Option for New Construction - Owning a building may be preferable to many companies, yet is impossible for some to attain. Build to suit provides all the benefits of new construction of a custom office building, all for the commitment of a long-term lease. Many build to suit arrangements are pre-planned with both the office lease company and the builders giving companies room to expand as necessary. Any unused space can be subleased in the meantime, offering the most financially sound plan for both the tenant company and the building investor/owner.
Are There Drawbacks to Build to Suit?
The biggest drawback with a build to suit office space is that it is definitely a long-term project. Office lease space can generally be located and filled in a matter of six months to a year for most companies; however, build to suit new construction can take a number of years to finish. The process requires finding the right location and the right developer willing to build to suit; planning the building and its construction, and financing part of the process; however, for the right company and long-term arrangement, the savings become apparent the longer a company occupies their custom built to suit office space.
Is build to suit office lease space the best choice for companies looking for long-term office space? After a careful examination, it can be the right choice for many companies. By working with skilled tenant representation services who are experienced in these type of projects, a company can choose their options and have a clear understanding as to whether building to suit is best. To learn more about building to suit and the best options for office lease space, contact tenant representation services experienced with such projects!