Occupier Service
Build-to-Suit Advisory.
Custom-spec facilities without developer-level capital.
Overview
What it covers.
Build-to-suit transactions are well-suited to operators with specific facility requirements that available inventory cannot satisfy and a stable enough operational profile to justify a long-term lease commitment. The structure provides custom specifications — clear heights, loading configurations, process infrastructure, brand image — while transferring the capital intensity to the developer partner. Lease terms typically run 10 to 15 years, amortizing the developer investment while providing the operator with operating cost predictability.
The Process
Step-by-step execution.
01.
Requirements Documentation
Detailed specifications — building size, clear height, loading, power, process infrastructure, yard, parking, frontage, brand standards.
02.
Site Identification
Source viable sites that fit specifications and operational requirements. Coordinate with land owners and developers.
03.
Developer Partner Selection
Identify development partners with track record in similar product, balance sheet to support the commitment, and willingness to structure the right deal.
04.
BTS Lease Structure
Structure the BTS lease — base rent, escalations, op-cost handling, term, options, exit rights, specification accountability, and post-completion provisions.
05.
Construction Coordination
Monitor construction progress, manage specification compliance, coordinate move-in planning.
06.
Occupancy & Operations
Coordinate handover, operational ramp-up, and ongoing landlord-tenant relationship management.
Who This Is For
The right fit.
- Manufacturing operators with specific process infrastructure requirements
- Large-format distribution tenants needing specifications above available inventory
- Cold storage operators requiring purpose-built facilities
- Operators with strong brand image requirements
- Long-horizon tenants comfortable with 10 to 15 year commitments
What You Get
The deliverable.
- Detailed specifications documentation
- Site identification within viable submarkets
- Developer partner sourcing and qualification
- BTS lease structuring with full economic and operational terms
- Construction monitoring and specification accountability
- Occupancy coordination and operational transition
When to Engage
Timing.
Engage 18 to 36 months before required occupancy. BTS transactions require site sourcing (6 to 12 months), developer engagement and lease structuring (3 to 6 months), and construction (12 to 18 months for typical industrial product). Specialty assets (cold storage, manufacturing) extend timelines further. Early engagement allows site optionality and developer competition.
Why Me
The fit.
BTS transactions require coordinated brokerage across site selection, developer selection, and lease structuring. Samuel's industrial focus and NAI Commercial Vancouver's developer relationships provide both the site sourcing depth and the developer access required. The combination of operational knowledge (specifications that fit your business) and commercial knowledge (lease structures that protect your economics) is essential for BTS success.
Frequently Asked Questions
Build-to-Suit Advisory, answered.
When does build-to-suit make sense vs. leasing existing inventory?
BTS makes sense when available inventory cannot satisfy your operational requirements (specifications, location, size), when your operational profile justifies a 10 to 15 year commitment, and when development timing aligns with your occupancy need. For operators whose requirements fit existing inventory, BTS adds complexity without commensurate benefit.
How does build-to-suit rent compare to standard industrial leases?
BTS rent typically runs at a modest premium to standard industrial lease rates, reflecting the developer's capital commitment and the custom specifications. The premium varies by specifications, location, and developer cost of capital. The right economic comparison is total occupancy cost over the lease term including operational efficiency gains from the custom facility.
Who controls specifications in a build-to-suit transaction?
Specifications are negotiated during the BTS structuring phase and documented in the lease. The tenant typically drives specifications within the developer's economic envelope. Specification changes during construction carry change order economics. Clear specification documentation upfront protects both parties and reduces dispute risk.
Can a build-to-suit include eventual ownership of the building?
Yes — BTS lease structures can include purchase options at defined milestones or at lease end, lease-back structures with prearranged purchase, or eventual ownership transfer. The right structure depends on operator capital position, growth horizon, and tax considerations. These structures are negotiated during the BTS structuring phase.