Build-to-Suit Leases: Key Considerations for Landlords, Developers, and Tenants; Pitfalls to Avoid

This CLE webinar, presented by Cyd Smith, Lisa Zana and Jennifer Stenman (Reinhart Boerner Van Deuren S.C.), 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.

A BTS lease is an agreement between a landlord/developer and tenant to build a commercial building that meets specific tenant requirements. Although BTS leases contain similar components as standard commercial leases, there are unique risks and benefits for the parties to a BTS lease of which counsel should be aware to best protect their clients' interests during the negotiation and drafting process.

For tenants, a BTS lease offers certain financial advantages and flexibility in addition to obtaining a property designed to suit the tenant's specifications. However, given that the term of a BTS lease may run for 10-20 years, tenants assume the risks of a long-term lease and the concurrent obligations.

For landlords and/or developers, a BTS lease secures a long-term tenant; however, they acquire more risk during the development process, possibly incurring costs for a custom build, and risk being able to rent the custom property to others at the end of the lease term or if the tenant defaults.

Listen as our expert panel provides an in-depth look at BTS leases and addresses 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 and provide best practices for drafting and mitigating inherent risks.