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In real estate speak, location is everything. It needs to make sense for the building to be situated in an area of town that supports your business efforts for attracting a client base and/or selling product(s), services and hiring employees. To help business owners make decisions and determine a plan of action for build-to-suit property, we will examine these factors in more detail. 

Size and scope are the two biggest factors at play when developing a timeline for your company to build its own commercial building. In general, a commercial ground-up construction project can take anywhere from 12 months to 2 years. Other variables that determine the timeline for building a commercial space include securing a location, financing, materials and labor. 

What does the timeline for a commercial buildout look like? 

Here is an estimated basic timeline for building a commercial property outlined below in 5 steps. 

Step 1: Site selection and due diligence

This phase of the project can take 1-4 months on average. During this time, the focus is on selecting a suitable lot for the building and carrying out due diligence to ascertain that it is appropriate for your company’s needs. At this time, your attention will include researching zoning requirements, environmental factors, an ALTA survey, and any other issues that could potentially impede building on the actual site. It is wise to hire a commercial real estate expert to represent your interest and guide you through the complex process. An experienced commercial buyer rep simplifies the complex transaction and reduces your timeline. 

Step 2: Design and engineering

The timeline for design and engineering of the build-to-suit is typically 4 to 6 months. Once the site is selected, the next part is to select and hire the project architect, engineers, and any other professionals involved in the design process, while obtaining the necessary permits and approvals required. This phase can be lengthy as it often involves multiple revisions of the design with the architect and stakeholders, municipality and often the contractor. 

Step 3: Financing and budgeting

Prior to breaking ground, financing must be secured and finalized along with a detailed project budget. This includes meeting with lenders, your CPA, and your financial planner to ensure the project is financially viable. This phase can last about 3 months and coincides with the design phase of the building. 

Step 4: Construction

Once the necessary permits and approvals are secured and financing is in place, construction can begin. Depending on the complexity and size of the commercial property, the timeline for construction can vary a lot. External factors such as season and weather come into play, labor force availability and supply chain disruptions. Seasoned professionals will tell you that this period of the project can go on from 9 months to a full year, and strive to proactively head off unnecessary mistakes. 

Step 5: Occupancy 

After construction is complete, the buyer schedules a final walk-through with the contractor and outlines a punch list of items that need completion. When the property has been greenlighted for occupancy, the move-in can begin and business operations can commence. The occupancy phase may take a few months to dial in. 

Managing expectations 

Overall, the timeline for building a commercial property from start to finish realistically ranges from 18 to 30 months, conditional to the specifics of the project. It is imperative to work with experienced professionals and spend time creating a highly detailed plan to guarantee that the project stays on track and (most importantly) within budget.