A build-to-suit is a property developed to a specific tenant’s requirements, typically with a long-term lease signed before construction.
For investors a build-to-suit is attractive because the tenant has invested in a location designed for its operations, and the lease is typically signed for a long term before construction begins. The risks are different from an existing building: construction, delivery timing, and rent commencement. A buyer should confirm whether the lease has commenced and whether the tenant has accepted the premises. Many NNN properties offered for sale are former build-to-suits that are sold after the tenant takes occupancy.