Businesses have three options when it comes to expanding into a new facility– they can invest in land and then can construct on their own, lease or purchase an existing facility and make necessary renovations, or partner with a developer to design and build a new facility for lease.
A landowner has land, and some company or commercial real estate agent approached the landowner and said that we are ready to take property on a lease if you can build it as per our requirement. Then land owner constructs the property as per the client’s specific requirement and handover to him, this is called built-to-suit property. Built-to-suit properties are generally business-specific because they cater to one single type of business.
A built-to-suit property is a type of property wherein there is an agreement between the landowner and the tenant and the property space is customized according to the client’s requirements by the landowner. The landowner shares all the design and construction requirements at the outset, which when agreed upon, the actual property construction commences.
At present, businesses do not want to engage capital in buying a plot and constructing a building and decide to utilize BTS in order to economize on the investment and future maintenance costs. In the BTS model companies get construction specifications as per their own requirement so this is the biggest advantage.
The tenant prepares the specifications for the development and the developer or landowner develops the property as per the tenant’s specifications. The tenant then enters into a long-term lease on the property and the investor receives rental payments from the occupier. “The complete time taken in this process is 9-12 months, it may vary as per the specification and size.
The use of the right property consultant to guide you through this in the simplest and easiest way to find the right client. You can find good industrial consultants area-wise on IndustrialPlot.com.
There is no use in re-inventing the wheel and wasting time searching for a client. Companies already have consultants who assist them in this process. You can post your property on IndustrialPlot.com with complete details; from here you can get good leads directly from companies and from property consultants also, as Industrialplot.com is the only Industrial real estate platform which is specifically dealing in Industrial real estate