From the course: Introduction to Commercial Real Estate Analysis

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Medical office case study

Medical office case study

- [Instructor] Hey welcome back. In this lecture, we are going to look at a medical office example and specifically we're going to do what's called a build to suit example. Now a build to suit is when a developer builds a new building to suit the specific needs of a tenant who's going to either lease or purchase the finished product. Alright, so building to specifications. Alright, now there's two components of build to suits. One is a development agreement between the landlord and the tenant that specifies what is being developed, what are the specifications, and when is it going to be done, and all of those. And then the other is a long term lease agreement or a purchase agreement. Hey when this is done, this is how much it's going to be paid, or this is how much the rents are going to be and this is how long the lease terms are, all of the things that we talked about as the components of a commercial lease, well they would have that, right? So a developer is not going to spend the…

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