A build-to-suit development plan simply refers to a construction project in which the property has been created as per the instructions of the client. And if you are a business that is seeking to set up its own office, this can be incredibly beneficial. Below, we will look at the six things you need to know about leasing a built-to-suit office space.
The biggest benefit is that of customization. If you had gone the traditional way, then you will have had to choose a ready-made office space. This can create problems for you since you will have to adapt the layout of the office to the space that is available. In contrast, with a build-to-suit option, you can get the office space built exactly the way you want.
- Construction Team
Make sure that you only hire a construction firm that already has years of experience in developing build-to-suit properties. They must have executed a large number of projects exactly as per the client’s requirement. So, check their past projects and talk with the previous clients to ensure that you only end up hiring a good construction firm.
- Lease Terms
Since you are leasing the property, you can also enjoy significant tax benefits. As lease payments are tax-deductible, you can write it off as an expense in the balance sheet. Plus, the beauty of the lease is that you can end it after the specified period, after which you can look for a new property for your office space if you feel like it. Instead, if you had bought the office space through a business loan or any other way, you would have been tied to the property in addition to taking on a new financial liability.
In case you decide to shut down the business activity and sell it off to someone else, you can avoid involving yourself in time-consuming real estate paperwork. Since the property is only leased, the only thing to do is to terminate the contract. That’s it.
- Cut Down Investment
Leasing the build-to-suit property is an excellent way for new businesses to get the office space of their dreams without having to make any major investment. As such, they can preserve their capital and use it for other constructive purposes. In contrast, buying a property outright would have involved massive investments that would have depleted the capital and left you in a financially insecure position. You can talk to the experts at ARCO to know more.
- Reduce operational Cost
By leasing your build-to-suit property, you will also reduce operational cost significantly. Since the office space will be designed in the exact way to want, every major operational component can be taken into account for the office layout. This will help you achieve the best possible space efficiency that will cut down the cost of running the office space. And if the space needs to be expanded in the future, such expansions can be integrated into the existing office layout while maintaining the efficient utilization of space.