Real Estate

Build to Suit Lease Opportunities Continue Throughout the Sunshine State

In the dynamic landscape of commercial real estate, Build to Suit (BTS) leases emerge as a strategic solution for businesses seeking tailored property solutions. These unique arrangements enable tenants to commission custom-built commercial spaces, aligning perfectly with their operational needs while offering developers a lucrative investment pathway.

Understanding Build to Suit Leases

At its core, a Build to Suit lease is a real estate agreement where a developer constructs a commercial facility to a tenant’s exact specifications. Unlike traditional leases, BTS arrangements involve tenants from the project’s inception, ensuring the final property meets their unique requirements without the upfront capital typically required for such customized developments.

Key Participants in Build to Suit Leases

The Role of the Tenant

Tenants play a pivotal role in BTS projects, actively participating in design decisions and financial planning. This involvement ensures the final property not only serves their operational needs but also offers financial benefits such as tax deductions and capital preservation, making BTS leases an attractive option for businesses looking to optimize their real estate investments.

The Developer’s Perspective

Developers, on the other hand, undertake the responsibility of bringing the tenant’s vision to life. This includes managing the construction process and ensuring the project meets agreed specifications. The financial model of BTS leases provides developers with a stable income stream, reducing the risks associated with speculative building projects.

Financial and Accounting Aspects of BTS Leases

The introduction of new accounting standards by the Financial Accounting Standards Board (FASB) has significant implications for BTS leases, affecting how both tenants and developers report these agreements. Understanding these standards is crucial for ensuring compliance and optimizing the financial structure of BTS projects.

Types of Build to Suit Leases

BTS leases vary, from single net leases where tenants pay property taxes, to more comprehensive arrangements like triple net leases, where tenants assume most property expenses. Special structures like sale-leaseback and reverse build-to-suit agreements offer additional flexibility, catering to diverse financing and operational requirements.

Advantages and Challenges of BTS Leases

Benefits for Tenants and Developers

For tenants, BTS leases offer the advantage of a customized property without the hefty capital outlay, complete with tax benefits and operational efficiencies. Developers benefit from guaranteed tenants and a clear return on investment, making BTS projects a mutually beneficial arrangement.

Potential Drawbacks and Solutions

Despite their advantages, BTS leases come with challenges such as long-term commitments and the potential for construction overruns. Addressing these issues requires careful planning, clear contractual agreements, and ongoing communication between tenants and developers.

Case Studies and Examples

Real-world examples of BTS projects highlight the potential for success in various sectors, from retail to industrial. Analyzing these cases provides valuable insights into best practices and common pitfalls, offering guidance for businesses and developers considering BTS leases.


Build to Suit leases represent a significant opportunity within the commercial real estate sector, offering bespoke solutions for tenants and secure investments for developers. As the market evolves, understanding the nuances of these arrangements will be crucial for anyone looking to navigate the complexities of modern real estate.

For comprehensive insights and opportunities in Build to Suit and Build to Suit Lease projects, visit our dedicated resource platform.