Commercial Real Estate Interview: Build-to-Suit Projects with Travis Voegele

Q: How do you assist clients with land acquisition, and what are some of the common challenges that arise during this phase?

A: Typically, after working with them to assess the scope of their project, I provide a list of property options for the clients to look at. We then discuss what properties make sense for them and which don’t. We discuss what the property is listed at, what their budget is, and what kind of value the property is to them. The value of land to individual clients can vary. You can only buy land once, so it is important to choose the right piece and just as important, the right price. I work with the client to choose what property interests them most. We then strategize on what components are necessary to include in the offer to the seller to purchase the property. I then write up the offer and begin to negotiate with the listing agent as well as the seller. When we have an agreement in place, I work with the client to acquire the land and close on the property.

These types of projects are a little more complicated. Usually, a buyer needs due diligence done before closing on the land. They need time to speak with the city and make sure their class of business fits the city’s expectations and they also need time to get a building permit approved. Many times, a piece of land may be desired by the client but restrictions prevent them from completing the project they want to build. At that time, we may need to cancel the purchase agreement and start over. Throughout the acquisition phase and during due diligence there are always unexpected things that come up; unexpected city building restrictions, property use restrictions by the seller, easements, surveys, environmental issues, etc. We obviously try to forecast any issues ahead of time, but there are surprises that come up that prevent a project from moving forward in certain locations.

Q: Can you describe a situation where the build-to-suit approach helped a client overcome a significant challenge?

A: One client was looking to lease space in the FM area and could not find a space that fit their specific needs. However, they weren’t financially ready to build the type of space they needed. At that point, we worked with Christianson companies to act as a developer who acquired the land, built a tailor-made building to suit my client’s needs, and leased the property to them with an option to buy that building at a later date. Eventually, the client was able to purchase the property outright. It was a win-win for both the developer as well as my client.

Q: Could you share any trends or shifts in the build-to-suit market that you’ve noticed in recent years?

A: We have seen more development projects that are being condominiumized with office parks, shops spaces, and other things like that. These projects allow a client to own their space and gain equity while not having to deal with buying the land, developing the project’s infrastructure, and taking care of maintenance like snow removal. It allows them to own, customize, acquire equity, and not deal with some of the other headaches.

Key Considerations for Build-to-Suit Real Estate Projects

Shovel-Ready Parcels — Some sites are ready for immediate development. If utilities, water retention, and infrastructure are already in place, this accelerates the project timeline.

Project Scope and Timeline — Smaller projects, like shops or warehouses, can be completed in 3-6 months. Larger buildings may take a year or more due to additional design, permitting, and regulatory requirements.

Ownership and Risk Management — Developers or contractors may retain ownership during construction to manage risks. This ensures they stay committed to the project’s success, reducing the chance of unfinished structures becoming the property owner’s responsibility.

Integrated vs. Outsourced Services: Firms like Christianson Companies and Property Resources Group offer in-house design, architecture, construction, and project management, creating a seamless experience that saves time and money. Outsourcing these services individually can complicate coordination and increase costs.

Customization Options — Build-to-suit projects can range from full-building developments to smaller customizations, such as designing leased spaces in strip centers to meet specific needs. This flexibility allows projects to align with varying client goals.

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