Build to Suit

"Build to Suit" is a term used in commercial real estate to describe a particular arrangement between a landlord (or developer) and a tenant where the landlord (or developer) constructs a building according to the tenant's specifications.

This type of arrangement is often used when a tenant has specific needs that can't be met by existing buildings or properties. The tenant could be a retail business that requires a specific layout, a restaurant that needs a particular kitchen setup, or an office-based business that needs a specific type of office configuration.

The terms of a build to suit agreement will vary. The tenant might sign a long-term lease agreement, and the cost of construction could be included as part of the lease payments. Alternatively, the tenant might purchase the property outright once construction is completed.

Build to suit can be an attractive option for businesses with specific property requirements. However, these types of arrangements can also be complex and may involve significant financial and legal considerations. Therefore, both parties involved in a build to suit arrangement should carefully consider their options and potentially seek advice from legal and real estate professionals.