Summary: How to successfully work with your developer? Clear communication and project needs can help developers and tenants produce a successful build-to-suit plan. Developing solid partnerships may help your organization grow.
Collaboration is a well-known prerequisite for economic success. However, the methods for ensuring that collaboration is successful are frequently given little thought.
Coordination can be challenging when planning a build to suit development because there are many moving aspects and dynamic elements. The established relationships between the commercial developer and the tenant, as well as how those relationships have changed throughout the course of the project, make the procedure special.
Let’s look at some guidelines for maintaining effective communication during the build to suit process.
Have Clear Goals from the Start
A common understanding of expectations between the developer and the tenant should exist regarding everything from design requirements to construction parameters to rent and the estimated completion date. You can prevent delays on the way to project completion by setting clear objectives, especially early on.
Collaboration is also essential for determining the complete range of all federal, state, and local approvals and permits necessary for the building’s construction and fit-out, and tenant’s use.
A project RFP may, but is not required to initiate this procedure.
Avoid Disproportionately Harmful Provisions
Avoiding requests for compromises that would put an undue burden on either party makes it easier to complete the process quickly and collaboratively. Cutting down on project delays and problems requires compromise.
For instance, the tenant shouldn’t expect the developer to fix the rent for an unfinished building. However, the developer still needs to guarantee the tenant that it will receive a fair rent. Another illustration would be that the developer shouldn’t anticipate the tenant giving up total control over the building’s design and vice versa. While respecting the developer’s core interest in the project’s design, the tenant should have a considerable voice.
Adequate Reporting Documentation
Setting up effective reporting and communication might be crucial to finishing a project effectively and on schedule. For instance, the developer will be the applicant for all permissions during the approvals process and throughout any public hearings, but the tenant should be accessible to supply the timely information necessary to complete the application submissions.
The eventual success of any such procedure depends on the developer and the tenant’s ability to cooperate efficiently, especially in the early phases. The developer will be able to work successfully and efficiently while still giving the renter regular updates if they have the proper information-sharing and communication mechanisms in place. This may require weekly reports with images and documents during the construction phase.
Be Flexible and With Patience
The build to suit method is likely to involve a variety of challenges. The industrial developer and the tenant will need to be adaptable and work together on numerous challenges in connection with the development process, such as potential site issues, changing design needs, and regulatory permissions.
For instance, it is necessary to weigh the likelihood that the requested relief can actually be obtained with the extent to which the tenant’s plans and intended use will necessitate variances for the project to move forward. Each side must be adaptable at this point to minimize and overcome hurdles.
A successful build to suit plan for the developer and tenant may be established by opening up clear communication lines and shared knowledge of the overall project requirements. Furthermore, solidifying relationships early in the development cycle will help your business’s overall expansion plans run smoothly.
******************************
Come join us! Email me at mark@dolphinpi.us to find out more about our next real estate investment.