REAL ESTATE SERVICES

InSite Consulting professionals include licensed industrial and commercial real estate professionals – an asset to a diversified client base since real estate issues will always be a factor in the site selection and economic development equation for both private sector entities, and public-private organizations (communities, counties and regions).
 
We assist the private client who is looking for "turn-key" site selection capabilities, right down to negotiation of real estate. We are staffed to represent tenants and landlords.   Services include:

• Property Negotiations
• Property Options

From the public side, we add a dimension to your sales effort with Build-to-Suit / Leaseback opportunities, a leveraging option for communities aggressively creating a "real estate / building fit" for a prospect.

WHAT IS THE BUILD-TO-SUIT DEFINITION?
A build-to-suit facility is specifically constructed to meet the design, location and physical specifications of one major user. Excess space in the building could be leased to additional tenants or set aside for the planned expansion of the original tenant.

WHY YOU SHOULD CONSIDER A BUILD-T0-SUIT / LEASEBACK FACILITY?

• Leases are an operating triple net lease
• Long term fixed rentals are at competitive rates
• Leases provide total operational flexibility with options to buy
• Tax advantages in the leaseback vs. ownership
• Long term renewal rights can provide complete control of the property for its economic life

A user has several alternatives in which to originate and transact a build-to-suit opportunity, these 3 being the most typical:

• The user assumes the responsibility of acquiring the land; hires a general contractor to oversee the planning and construction; and assumes the liability of financing, either with debt or equity. Upon completion, the user has the option to continue ownership or sell the property to an investor and lease it back. This is known as a sale-leaseback transaction.
• The user approaches a developer with a requirement and transfers the construction, ownership risk and potential profit to the developer.
• The hybrid between the above choices, including shared equity and joint venture arrangements.

OTHER CONSIDERATIONS WITH BUILD-TO-SUIT / LEASEBACK ARRANGEMENTS

• Length of Lease
  A longer lease term generally allows the developer to achieve more favorable financing, translating into a reduction in rental rate. A longer lease term reduces the real estate and property-related risk of the transaction and places greater emphasis on the credit risk of the tenant. Most users prefer the lease remain off their balance sheets to improve key financial ratios such as return on assets and return on equity.
• Location and Construction
  The cost of a build-to-suit facility is influenced by the credit of the tenant and the underlying real estate. Upon lease expiration, the developer must assume the risk of releasing the property. In the past this could frequently mean an empty building for one to three years, new interior improvements and many other associated costs. The risk is minimized if the property is well located and is not constructed as a "special" or "single-use" type of structure.