When an occupier has the option or need to construct a building, the role of an advisor is significantly more complex. While the build-to-suit project will stretch the capabilities of the client and its team, the undertaking presents the opportunity to create a built environment that meets or exceeds all of its space demands.
For an occupier with sufficient size, credit, and flexibility, the build-to-suit option can create unsurpassed market leverage. If handled correctly, this an option can reduce occupancy costs well below the “market” stated. With the requisite time to entitle, design and build a new project, the build-to-suit can be engineered to an economic performance level that is a function of land, construction, and corporate borrowing rates: a combination that can improve the economics over existing buildings, even including the occupier’s existing facility.
With the rapidly-increasing changes in workforce, many older buildings have become much more difficult to adapt to the activity-based environments desired by younger workers. Needs for higher ceilings, more glass, deeper bay depths and an abundance of natural light can be designed into a bespoke building, but might be cost-prohibitive or impossible in the current facility.
For occupiers with this opportunity, Savills Studley has the skills to plan, manage, and negotiate the best solution.