In today’s retail environment, growing concepts are faced with numerous challenges from penetrating high barrier to entry markets and supply constraints to the ever-changing customer profile. SCGWest is helping many retail and restaurant concepts combat these challenges by strategically identifying, negotiating, and acquiring new locations, whether leases, purchases, or build to suit opportunities, we are always on the tenant’s team. We are continuously determined to find the best, most sufficient way to develop commercial real estate.
Let’s dive into three sectors in relation to development: Build To Suit, Redevelopment, and Financing.
Build To Suit (BTS)
A Build to Suit project is exactly how it sounds…building to suit the specific needs of an occupant.
The Build-to-Suit and the Design-Build process are similar. The difference is a Build-to-Suit, commencing at the completion of construction, is leased for a predetermined period. This allows a company to preserve its capital for business operations, rather than real estate investment. Additionally, this approach also provides term flexibility to a company. The Build-to-Suit and Design-Build process is a seamless, turnkey, single contract for services, method of building delivery. From conception through completion, historically, this method of construction has proven to reduce both project cost and completion time.
Redevelopment is similar to a renovation. The main difference between renovation and redevelopment is the scope of the project. Typically, renovations mean making smaller cosmetic updates to areas such as lobbies and bathrooms. In contrast, redevelopment is a much larger construction project that may require demolition and complete rebuilding of the property. Redevelopment often occurs in up-and-coming areas where older buildings need major innovations or added amenities to be appealing.
Most banks consider restaurants and retail to be a high-risk industry, meaning that they are far less likely to approve loans for these business owners. The bank’s view of risk isn’t misplaced—a 2017 study by Restaurant Startup & Growth magazine concluded that 23% of restaurant and retail start-ups will fail within the first year.
If you cannot get a traditional loan, what other financing options are there? This is where we come in! SCGWest has a multitude of options for financing a project. In fact, one of our primary services is creating ‘Due Diligence Packages’ for our clients. These packages are so detailed that our clients may present them to the bank to receive financing.
We Turn Your Vision Into A Reality
The key strength of SCGWest is the quality of the individual team members and the ability to form a team perfectly suited to any project with knowledge, competency, and experience unrivaled by our competitors.