STRATEGY
Build-to-Suit
A build-to-suit is a transaction in which the landlord constructs an asset to meet the particular needs of a specific company, which then becomes the tenant of the property. This requires expertise both as a landlord and/or investor and in construction. With over 35 years of development experience, ElmTree believes it is well qualified to manage all aspects of a build-to-suit transaction through managing the entire lifecycle of the transaction, including oversight and financing.
This growing segment of the commercial real estate market generally benefits both tenants and landlords:
With a build-to-suit property, tenants can design and build a new facility intended to meet its exact business needs without having to expend any capital, thereby reserving cash flow for reinvestment in growing the core business while maintaining control of the facility.
The landlord/property owner secures a long-term tenant that will provide a reliable stream of income for years to come.
BUILD-TO-SUIT VS. SPECULATIVE BUILDING:
SPECULATIVE DEVELOPMENT
DEVELOPER ACTIVITY
- Secure all permits, approvals and entitlements
- Secure a lease with the tenant
- Provide completion guarantee
BUILD-TO-SUIT CONSTRUCTION
ELMTREE
ACTIVITY
- Monitor the project throughout construction
- Take ownership once developer obtains all entitlements, permits and the tenant has signed a lease
