Build-to-suit (BTS) leases have become increasingly popular, especially with users of industrial real estate, but they present certain development-related issues not found in standard commercial leases. Budget development and reconciliation, bidding, allocation of cost savings, and late delivery are all important items for tenants to understand in order to effectively manage costs and protect against delays in the development schedule.
In this episode, Ian Sutton joins Eric Greenberg and James O’Brien to discuss what differentiates and complicates a BTS lease, how a development budget is generated, additional terms that can help protect tenants, and other important cost considerations.
