What is a "build to suit" lease?

A "build to suit" lease is a specific type of agreement where the landlord takes responsibility for constructing a property that meets the specific requirements and preferences laid out by the tenant. This arrangement is particularly beneficial for tenants with unique needs, such as particular space dimensions, design, or functionality that cannot be met by existing properties.

In this scenario, the tenant provides input on the design and specifications, ensuring that the final structure aligns precisely with their operational needs, which can enhance business efficiency and suit their style or requirements perfectly. This relationship typically involves negotiation on terms such as construction timelines, costs, and any potential alterations needed during the building process.

Other options do not accurately represent the concept of a "build to suit" lease. For instance, renovating an existing property would not require new construction tailored from the ground up, while purchasing the property would be a different transaction entirely. Standard property features denote a lack of customization, which is contrary to the essence of a "build to suit" arrangement focused on personalized specifications.