Commercial leases sometimes include a build-to-suit provision that enables the business moving into the space to have it designed or remodeled in a specific manner. This gives them the option to have the building’s layout meet their needs in a very specific manner — without worrying about tying up their capital in any real estate before they are ready.
But what if a business owner wants the option to purchase eventually? A purchase option that’s built into the lease can make that a real possibility and help keep plans for the future open.
Why is a purchase option beneficial in a build-to-suit lease?
Finding an ideal location for your business is sometimes difficult to do and building new construction is costly. When you find these via a build-to-suit lease, the last thing that you need to find out is that the building is being sold.
When you have a purchase option put into the build-to-suit lease contract, you get the first chance to buy the property if the current owner puts it up for sale. There are usually terms in the contract that specify when and how this can be done, so be sure that you double-check those to ensure that they reflect what you discussed during the negotiations for your space.
Review your purchase options carefully before you sign that contract
Anyone who’s considering a build-to-suit lease should ensure they review the contract in its entirety. This gives you a chance to verify that you understand all terms and conditions that may apply — and that prevents unpleasant surprises down the road.