Build-to-Suit Leases: Key Considerations for Landlords, Developers, and Tenants; Pitfalls to Avoid
Pros vs. Cons, Selecting the Right Lease Type, Negotiating Unique Terms
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will provide an in-depth look at build-to-suit (BTS) leases and address the risks and benefits for landlords/developers and tenants. The panel will discuss considerations and terms that are unique to BTS leases as compared to standard commercial leases of which counsel should be aware to best protect their clients' interests during the negotiation and drafting process. The panel will also provide best practices for drafting.
Outline
- Overview of the BTS process
- Pros and cons
- Due diligence process
- Lease types
- Single, double, and triple net
- Reverse BTS
- Sale-leaseback
- Developer agreement
- Others
- Negotiating and drafting the BTS lease: key terms and considerations
- Parties to the lease
- Premises description
- Lease term
- Renewal options
- Commencement date vs. completion date
- Rent amount
- Taxes
- Use/restrictions
- Plans/approvals/change orders
- Maintenance and repair
- Purchase options
- Warranties
- Termination
- Work letter/scope of work
- Other considerations
- Best practices for practitioners
Benefits
The panel will review these and other important issues:
- Under what circumstances should counsel and their clients consider a BTS lease?
- What are the risks and benefits of a BTS lease for landlords/developers? For tenants?
- What types of leases are used for a BTS project?
- What terms and considerations are unique to BTS leases as compared to standard commercial leases?
- What are best practices for mitigating risks for each party?
Faculty
Jennifer Stenman
Shareholder
Reinhart Boerner Van Deuren
Ms. Stenman counsels commercial property owners and developers in sales, acquisitions and leasing transactions. In her... | Read More
Ms. Stenman counsels commercial property owners and developers in sales, acquisitions and leasing transactions. In her extensive experience with commercial leasing, Ms. Stenman primarily assists landlords of office, industrial and retail assets in negotiating and drafting lease documents, including build to suit leases, and handling landlord/tenant matters. She is nimble and well-versed in the many issues that impact commercial leasing transactions and can anticipate challenges to set her clients up for success. Ms. Stenman’s practice is nationwide and concentrates predominately on large industrial projects such as warehouses, distribution centers and manufacturing facilities.
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Lisa M. Zana
Partner
Shipman & Goodwin
Ms. Zana’s commercial real estate clients are situated throughout the U.S. with a focus on New York’s... | Read More
Ms. Zana’s commercial real estate clients are situated throughout the U.S. with a focus on New York’s tri-state area, and include private developers, public companies, institutional owners, banks, and lessees of millions of square feet of real estate across the country in the luxury residential, mixed-use, retail, commercial office, data centers and colocation facilities, hotel and hospitality, healthcare and higher education industries. Her specific experience and areas of focus include: representing public and private companies that use millions of square feet of real estate, in negotiating build-to-suit and credit-tenant office leases, development agreements and state tax incentive agreements; acquiring, selling, financing and leasing data centers and colocation facilities; negotiating ground leases; negotiating retail leases on behalf of developers and the end retail users; arranging for and negotiating debt and equity financing; and negotiating corporate- and property-level acquisitions and sales.
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