04 Aug Why you should consider Build-to-Suit for your organization’s next location
Whether it’s running out of space or in need of downsizing, it’s not uncommon for a company to decide to relocate. A business owner usually resolves that a change of place is necessary after noticing first-hand the outgrow of the space or after finding a fault with its facilities, services, utilities or infrastructure.
The most common reasons businesses list for moving are labor and work force issues, the desire to lower costs or increase cash flow, longing to reach new markets, the need to upgrade facilities and generally improving the quality of life around the work space.
While there are risks related to moving, it can be one of the best decisions for your business. When you plan on moving into a new space, if you’ve been in business for some time, the odds are in your favor. Knowing the ins and outs of your business will allow you to find a place and location that best fits your needs.
This is an important stage in any company, it’s certainly one that carries huge growth potential. Making your company grow out of a new space is, in theory, simple:
Why can’t the space you lease be precisely the space your business needs for future growth?
Build-to-Suit is a dream come true for a business owner. A space built according to current and future needs at an affordable, previously agreed rate. Build-to-Suit is a building specifically constructed to meet the design specifications of a company, who then becomes the sole occupant of the building.
Advantages include allowing the relocating tenant to achieve maximum space efficiency. The space is specifically designed for the tenant, this also allows for companies with specialized needs that rarely fit the market to design and build according to their specific requirements. Also, new construction allows a developer to incorporate cost-effective energy systems in the project resulting in reduction of operating costs. Ultimately, the tenant will have maximum design input to create a building that will serve for future expansion while using materials to reflect the company’s culture and desired image.
Build-to-suit is not a short-term solution. It usually requires a long-term commitment to finance the build out. It’s usually considered a more expensive alternative than leasing existing vacant spaces. However, the savings in space efficiency far outweigh those expenses.
In today’s commercial real estate environment, understanding the Build-to-Suit alternative will provide new alternatives for business development. By partnering with a qualified developer to create a mutually beneficial lease structure, organizations seeking relocation can direct their capital and human resources toward growing their business instead of managing long-term construction or settling for a less-than-perfect existing facility.