Build-to-Suit

Before a Build-to-Suit is considered and committed to, The Sandoval Team will make every effort to assure your long term operational goals and needs are understood.

We will ensure the location, design and economics will benefit the company now and in the future. No detail will be left unattended to assure time lines, permitting process and builder critical path for construction is met.

Our experience in negotiating these types of transactions will add value, protect your interests and minimize risk of failure.

Overview:

The Landlord pays for the improvement of site and construction of building. The building will meet tenant’s specifications and time line.

• Build-to-Suit (“BTS”) allows tenant to choose their preferred location.
• The new structure to be built will be equipped with latest technology and most energy efficient materials, reducing the operating costs for tenant.
• Major structural, mechanical and utility components will be under warranty at completion, minimizing the capital expenditure for repairs and replacement.
• Tenant can customize the Interior and Exterior of property to fit their operational and cosmetic needs.
• The rent for “BTS” properties is fully deductible over term of lease.

The challenge for tenant under a “BTS” may be the following:

• Tenant will be required to commit to a long term lease. A minimum term of 10 years is typical length
• “BTS” are more expensive and require tenant to have excellent credit in order to finance improvements.
• “BTS” are typically ground up construction, so the time line for completion may be anywhere from 12-20 months, depending on size, location, tenant improvements and weather.

The Sandoval Team stands ready to assist and provide needed consultation so that client will make a well informed decision.