Build-to-suit: A strategic business move for today's market

Guest column by Christine Wellenreiter, CM, ICD.D

Trying to decide between retrofitting an existing building or a new build? Beyond the obvious challenges of today’s real estate market with limited availability and elevated prices, there are many reasons why a new, purpose-build solution can be a cost-effective and strategic approach to meeting your business’ needs – for today and tomorrow. 

Here are some reasons businesses are now choosing to build new: 

Ability to tailor to specific needs

As the name suggests, build-to-suit construction is truly ideal for businesses needing a space tailored to their specific requirements. This approach ensures the building is designed to fit the way your business operates and is especially suited to the diverse needs of manufacturing, industrial and commercial operations. Having a say in everything from the location of loading docks and mechanical rooms to the layout of employee facilities and office workstations means you can avoid less-than-ideal configurations and work-around processes. 

• Pro tip: Did you know your new build is an attractive and in-demand asset? Sourcing existing commercial and industrial space in difficult, particularly in GTA, and according to commercial real estate experts at Remax , vacancy rates remain below 1% with distinct shortages in immense industrial units (5,000 to 20,000 square feet) for both lease and sale.
  

Increased flexibility for business growth

Build-to-suit construction offers increased flexibility for both current and future space needs. When industry needs and/or business plan models require the ability to scale up or facilitate rapid growth, a new build can be the way to go. When businesses share their vision and growth plans with an end-to-end design/build/operate team, the facility can be set up for easy and cost-effective future expansion plans. Many business owners find this to be a competitive and strategic advantage that enables them to act on opportunities to grow either organically or through acquisition activity. 

• Pro tip: Investors are on the hunt for quality commercial real estate, making this an ideal time for commercial (especially industrial) real estate owners. According to Altus Group Limited (a provider of asset and fund intelligence for commercial real estate), investors are turning to the lower risks and stable returns of industrial real estate. Likewise, according to a July 2023 Benefits Canada article, Canadian pension funds are typically allocating 12 to 15 per cent of their portfolios to real estate. While pension funds have pulled back from office and retail, industrial and non-traditional commercial spaces like data centres and self-storage remain in demand.

Optimize your facility for higher productivity and lower operating costs

With a purpose-built construction, businesses can achieve "facility optimization". Since thoughtful end-to-end planning going into each aspect of your new build, everything from in-facility logistics (like streamlined manufacturing and processing lines, storage, shipping/receiving areas) to the ability to incorporate energy-efficient materials and ventilation systems can be considered from the onset, when the costs and time to implement tend to be lowest. In short, a new build allows you to make the most out of organizational resources for today and tomorrow.

• Pro tip: Check out government programs (federal, provincial and municipal) and the Canadian Infrastructure Bank for subsidies and grants available to encourage energy efficiency, environmental, social and governance value-add investments. New builds can integrate these cost saving incentives right into the initial planning of the build.
  

Less likely to encounter unexpected issues

‘What’s behind that wall?’ is a common worry for anyone who’s ever embarked on a renovation or retrofit – big or small. Retrofits often lead to unforeseen and unwelcome surprises, causing expensive delays and compromising project completion timelines and budgets. Building from the ground up means that your project is less likely to run into delays required by bringing work up to code, costly upgrades to essential systems like plumbing, wiring, HVAC and insulation, or other unexpected issues. If you’re a business owner that wants more predictability and less stress when it comes to sticking to budgets, timelines, environmentally friendly and efficient materials, a new build makes sense. 

• Pro tip: To further reduce unanticipated problems and worrisome project delays, consider using a turn-key design/build/operate solution provider, to efficiently and cost-effectively streamline your project. A reliable all-in-one builder takes accountability for all stages of the build, from initial planning straight through to your move-in date, meaning there is no ‘passing on problems’ from one contractor or stage of the build (e.g., design and engineering) to another (e.g., install and finishings). You’ll get streamlined organization, timing, communication, reporting and more, and save yourself innumerable headaches and costly delays.
  

Get the custom-designed structure best suited for your business needs

New build-to-suit projects offer a unique collaborative effort between the builder and the business to create a space that caters to your unique budget, timeline and business needs. It’s a compelling case for businesses looking to optimize operations and resources, reflect future growth needs, and reduce the stress and likelihood of unforeseen delays and costs.

If this sounds like the right business solution for you, reach out to Summit Steel Buildings at 877-417-8335 or by email at info@Summitsteelbuildings.com to share your vision and learn how we can help.