The Build to Suit choice has become an option for many companies looking to expand and grow. With a tight and limited inventory of Flex Industrial buildings available for sale in the 10k to 100k SF range, Industrial Land has become hot! The three steps are as follows: locate a piece of ground, check the zoning receive the township approvals and build. This process is known as a design Build to Suit.
Step 1: Search and find suitable land zoned appropriately for your intended use. A rule to follow 1 acre of buildable land yields 10,000 SF of building. Once the site is identified and the price negotiated the parcel goes under contract with an agreement of sale. Once under contract you will have up to 9 months to complete your due diligence on the property: environmental and geological study of the site, apply for township approvals to build the facility, secure financing and finalize architectural plans to start the construction process.
Step 2: Close on the land parcel and engage the engineering development company selected to build and complete your project. Prior to closing you will have arranged financing with your lender and received township approvals for the project. Should you require additional time to complete your due diligence and receive the necessary approvals for the project an extension period of 30 to 60 days can be agreed upon between the Seller and Buyer.
Step 3: This is the exciting part; construction of your new facility begins. The construction project can take between 4 to 6 months to complete depending on when a shovel is put in the ground. Ideally starting to move dirt in early spring into late fall is preferred. Weekly project updates during and up to completion of the construction process from your contractor is recommended. Receiving the keys to your new facility, moving in your staff and equipment and putting up your company sign is the final touch.
These three steps are a brief overview of the Build to Suit process. There are many details within each step, working with a team helps keep the project within the budget and on time.