A successful build-to-suit development provides operational efficiencies, long term growth and expansion capabilities and a facility designed with your company’s exact specifications in mind.
As companies have looked for innovative ways to be more competitive in their industries, particularly in the manufacturing sector, build-to-suit partnerships have emerged as a solution for firms who prefer to invest more of their resources into operations, and fewer resources into real estate & construction costs. Northland’s development and rehab projects have been historically tenant-centric, in that the vision of these projects is crafted in conjunction with our tenants to ensure a thoughtful and financially viable scope, providing certainty in long term occupancy cost and flexibility to adjust to changing work environments and company growth.
Northland is an industry leader, completing build-to-suit developments for local and national companies across northern New England. It is our relationships with Maine’s leading contractors & designers that ensures our clients get the highest quality build for their new location.
A build-to-suit development is ideal for those businesses that are considerate of their long-term facility goals and growth trajectory. Because these projects are typically new construction, longer lease commitments are required to provide the most competitive financing and lease rates. However, this provides the benefit of fixing what can be a variable cost for 10 to 15 years through predictable rental increases and the low operating costs that result from new, energy efficient buildings. Northland’s lease structure allows flexibility for tenants who want to contribute toward fit out costs and take advantage of accelerated expensing or depreciation of certain development cost categories.
In addition to having a partner who understands the cost benefit impacts of different construction methods and strategies, Northland is adept at achieving expedited regulatory approvals and managing tight construction timelines through hands-on collaboration with the chosen construction management firm. Our tenants have ample opportunity to incorporate design concepts to increase operational efficiency, highlight corporate branding, and take into consideration multiple growth and expansion opportunities into the final design of a facility. We partner with companies early in the concept phase and engineer the perfect solution to each tenant’s specific goals.
A build-to-suit partnership with Northland often begins with a thorough assessment of the market to review any existing facilities that may be suitable for the company’s operations. If a building exists that has promise, we work with you and the design team to understand the scope of work that would be necessary to provide long-term operational benefits. With that scope and cost in mind, we then compare that to a new facility. A renovation-to-suit may be more cost effective, but in many cases, the cost required to modify an existing building is high in comparison to a new facility and does not provide some of the operational efficiencies that modern construction methods and materials can provide. If that is the case, we undergo a search for development sites that best meet the Tenant’s requirements for access, visibility, expansion opportunities and nearby amenities. Northland will evaluate and consider each site for the municipality’s record on supporting development, the timing and cost impact of any necessary extraordinary approvals, and any possibility of additional financial support that could offset development costs and therefore reduce rent for the Tenant.
The majority of Northland’s build to suit projects have been completed on behalf of the principals of Northland, but we have completed select projects on a fee-basis only. Acting as developer, we build the building and manage costs as if we were going to be the eventual owner, but allow the end user company to own the facility upon construction completion.
Northland partners with companies to engineer the perfect solution for their plans of growth and expansion. A build-to-suit partnership with Northland offers many additional benefits:
A facility that is designed to your company’s specific needs, achieving the most efficient use of space
The ability to secure the ideal location, rather than waiting (sometimes years) for suitable properties to become available.
A brand-new facility, allowing you to enjoy the very latest technology and the most energy efficient construction materials, thus minimizing your operating costs.
Options can include building excess space that can be leased to other tenants or reserved for your own future expansion. Alternatively, Northland can include plans for expansion into the approval process, shortening the timeframe for delivery when the time is right to expand.
As we collaborate on the customization of your space, we incorporate your company’s brand into interior and exterior designs
In most cases rent can be fully expensed by the tenant and funds contributed by the tenant toward the fit-out costs may be expensed or depreciated at an accelerated rate
Following the completion of construction, the building will be professionally managed by Northland Management Corp, alleviating the stress of property maintenance.
Build-to-suit projects require teamwork and collaboration between the Tenant and the developer. The foundation of a successful development is a significant investment of time and energy into the design and predevelopment process, to ensure a smooth and predictable construction timeline. We recognize and appreciate that build-to-suit projects are a cost-effective way for our clients to modernize and grow. Our long-term hold strategy means that we will plan to hold the asset for at least ten years, and therefore it is in our collective best interest to help you conserve economic resources for business expansion, rather than investing in the construction of a new facility.
Northland has an expansive portfolio of build-to-suit projects consisting of numerous medical facilities, professional offices, retail locations, restaurants, local banks, universities as well as warehouses & manufacturing facilities. Our latest project was the development of a 79,000 square foot manufacturing facility designed and built for Harvey Performance Company at 49 Raceway Drive in Gorham, Maine.
NORTHLAND’S BUILD-TO-SUIT TENANTS:
