It’s not always the “one size fits all” option that is best when a business decides it’s time to open another location. Pursuing a single-tenant, build-to-suit construction may be an appealing solution in a very competitive market or seller’s market.
However, if you’ve ever heard tales about built to suit homes, such as how owners lose full control, you can have an inaccurate impression due to common misconceptions about the subject.
Therefore, before passing up a fresh opportunity that could seem to have an unfixable “cons” list, consider the suggestions below for converting lemons into lemonade.
- Misconception: Getting your credit authorized is practically impossible because it’s so expensive.
- Reality: Keeping your credit in good standing is not only a wise business decision but will also pay off and make more sense economically in the long term.
- Misconception: Most firms do not want the long-term commitment required for this type of development.
- Reality: The organization may profit enormously from a highly tailored built to suit in which the developer could shoulder the burden of risk instead when it is ready to plan for its long-term needs.
- Misconception: The owner may no longer be the primary decision-maker, and the project timeframe may involve many years of unavoidable delays.
- Reality: Despite any misconceptions, owners still have influence over the development, and if you have the patience and time, you’ll be rewarded with a completely personalized new place that’s tailored to your goals and expansion strategy.
- Misconception: Build to suits are not appropriate for everyone or at all times in a company’s life cycle.
- Reality: You should do a lot of research on the subject of build-to-suits because what could not appear like the correct time may simply be a lack of the right resources and perspective on the big picture.
As was already noted, what can appear to be the build-to-suit prospects’ hazards may not even be harmful to your company. Also, keep in mind that a development firm can play a significant role in facilitating communication between the landlord and tenant so that a build-to-suit is completed successfully and meets all standards the first time. Employing a developer has several benefits. One is that they will purchase, assume ownership of, and handle any construction-related risks.
SUMMARY:
What looks like build to suit hazards may not harm your business. Also, a development business can help the landlord and tenant build a successful build-to-suit the first time. Hiring a developer has many benefits, including taking responsibility and managing construction risk.
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