Common Pitfalls in Build-to-Suit Projects

What Is a Build-to-Suit Project?

A build-to-suit project is a commercial real estate solution where a building is developed specifically for a single tenant’s needs. Unlike retrofitting an existing building, the structure is designed and constructed from the ground up to meet operational requirements.

Build-to-suit construction can involve either a lease or purchase. In a build-to-suit lease, the tenant agrees to a long-term rental, often ten years or more, allowing the developer to justify customization costs.

This arrangement combines the benefits of a tailored space with the flexibility of leasing. Still, it requires clear expectations and experienced planning to deliver value.

Pitfall 1: Misaligned Expectations Between Tenant and Developer

One of the most common issues in build-to-suit projects is a disconnect between tenant expectations and developer delivery. When assumptions go undocumented or communication breaks down, the final product may not match the tenant’s vision.

For example, a tenant might assume that premium finishes are standard. Or a layout may meet contractual terms but disrupt daily workflows. These gaps typically surface late in the process when changes become costly.

The key to avoiding this pitfall is early alignment. Set clear expectations, document details thoroughly, and revisit goals throughout the project.

Pitfall 2: Poorly Defined Scope and Programming

Every successful build-to-suit project begins with programming, a detailed look at how space will be used. If this step is incomplete or rushed, it leads to confusion, revisions, and design challenges during construction.

Companies often overlook operational nuances, underestimate space requirements, or assume the developer will fill in the blanks. Without a well-developed program, design decisions lack direction.

Involve team members from every department early on. Collect their input, identify current pain points, and plan for future growth. A well-defined program keeps the project focused and aligned.

Pitfall 3: Scope Creep

Scope creep occurs when unplanned changes are introduced mid-project without review or budget adjustments. Even small revisions can trigger delays, redesigns, and added costs.

This typically happens when priorities shift, leadership changes, or early alignment is lacking. Without a formal change control process, decisions can snowball and affect the project timeline.

Prevent scope creep by setting boundaries and enforcing approval protocols. Evaluate the impact of each proposed change before making adjustments.

Pitfall 4: Lack of Stakeholder Alignment

Build-to-suit development affects HR, operations, IT, facilities, and finance. Excluding these stakeholders early leads to missed requirements and costly fixes later.

For example, the IT department may need dedicated infrastructure, or HR may prioritize workspace wellness features. Without their input, these needs may be overlooked or poorly implemented.

Create a cross-functional planning team and keep communication open throughout the process. When everyone has a seat at the table, the result is more effective.

Pitfall 5: Overlooking Long-Term Strategy

Short-term needs are important, but long-term vision drives true value. Companies that design only for today risk outgrowing their space or facing expensive retrofits.

Strong real estate development strategies include flexibility. Can the layout support future growth? Can systems be upgraded? Do lease terms allow for expansion?

Build-to-suit projects should support not just where your business is now, but where it’s going next.

Focus on long-term strategy with Hokanson Companies. Discover how our build-to-suit services help clients avoid common mistakes by aligning strategy, planning, and execution from day one.

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Pitfall 6: Timeline Slippage

Project delays can come from many directions, but internal decisions often play a bigger role than external factors. Missed approvals, late design feedback, and unclear specs all contribute to timeline slippage.

Every missed milestone adds costs and strains relationships. Underestimating permit time or redesign needs only compounds the issue.

Use an experienced project manager, establish realistic timelines, and track progress closely. A well-managed schedule keeps everything moving forward.

Pitfall 7: Choosing the Wrong Site

The best building on the wrong site still fails. Poor access, zoning issues, and a lack of utilities can compromise an otherwise solid development.

Evaluate site options based on:

Transportation access
Workforce availability
Zoning and permit requirements
Environmental risks and utility infrastructure

Select a site that supports both current needs and future growth. Site selection sets the tone for everything that follows.

Pitfall 8: Underestimating Total Cost of Occupancy

Initial construction costs are only one piece of the puzzle. The total cost of occupancy includes utilities, maintenance, insurance, taxes, and operating expenses.

For example, a poorly insulated building may result in high utility bills. A remote site may lead to increased employee turnover due to long commutes.

Consider the full financial picture before signing a lease. Long-term performance depends on more than construction price alone.

Pitfall 9: Weak Project Management

Without clear leadership, even the best-planned projects can unravel. Poor coordination, unclear responsibilities, and slow decision-making all create delays.

Strong project management includes:

Defined roles and responsibilities
Centralized documentation
Regular check-ins and milestone tracking

Partner with a firm that brings structured, experienced project oversight. Their guidance can be the difference between a smooth build and a stressful one.

The Role of Communication in BTS Success

Consistent, proactive communication helps build-to-suit teams stay on track. When updates are delayed or decisions go undocumented, issues escalate.

Encourage clarity across all phases of the project. Regular meetings, shared documentation, and direct points of contact make a major difference.

With the right habits, teams can work through issues quickly and maintain trust along the way.

Why Hokanson is the Right Partner for Your Build-to-Suit Project

Hokanson Companies brings decades of experience in strategic development, project oversight, and long-term real estate planning. We work with clients at every stage, from site selection to final delivery, to ensure each decision supports your operations, culture, and business growth.

Let’s bring your next project to life with confidence. Reach out today to get started.