Friday, March 8, 2013

What is Built to Suit?


What is Build-to-Suit?
In a build-to-suit the landlord builds the improvements for the tenant and the tenant leases them back typically on a Net Lease. The Net Lease rent payable by the tenant is a function of the construction and financing costs of the project. This arrangement allows the tenant to move in and occupy the property with zero initial cost.
The Net Lease rent is fully deductible over the lease term, making the tenant's after-tax cost less than with alternative forms of asset-based financing.


J. Michael Sigrist
Compass Investment Properties, Inc.
861 W. Morse Blvd. #250
Winter Park, Fl. 32789
Office 407-647-5111
Fax 407-629-9220
Cell 407-953-2605

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