About the Course
Introduction
This CLE webinar will provide an in-depth look at build-to-suit (BTS) leases and address the risks and benefits for landlords/developers and tenants. The panel will discuss considerations and terms that are unique to BTS leases as compared to standard commercial leases of which counsel should be aware to best protect their clients' interests during the negotiation and drafting process. The panel will also provide best practices for drafting.
Description
A BTS lease is an agreement between a landlord/developer and tenant to build a commercial building that meets specific tenant requirements. Although BTS leases contain similar components as standard commercial leases, there are unique risks and benefits for the parties to a BTS lease of which counsel should be aware to best protect their clients' interests during the negotiation and drafting process.
For tenants, a BTS lease offers certain financial advantages and flexibility in addition to obtaining a property designed to suit the tenant's specifications. However, given that the term of a BTS lease may run for 10-20 years, tenants assume the risks of a long-term lease and the concurrent obligations.
For landlords and/or developers, a BTS lease secures a long-term tenant; however, they acquire more risk during the development process, possibly incurring costs for a custom build, and risk being able to rent the custom property to others at the end of the lease term or if the tenant defaults.
Listen as our expert panel provides an in-depth look at BTS leases and addresses the risks and benefits for landlords/developers and tenants. The panel will discuss considerations and terms that are unique to BTS leases as compared to standard commercial leases and provide best practices for drafting and mitigating inherent risks.
Presented By
Ms. Smith is a partner in the Real Estate, Environmental, Energy, Land Use and Construction Department. She brings more than 25 years of experience advising clients in commercial real estate transactions, with a focus on leasing, finance, acquisition, and development. Ms. Smith represents institutional and private clients in the development and management of office, retail, and mixed-use properties across the United States.
Ms. Stenman counsels commercial property owners and developers in sales, acquisitions and leasing transactions. In her extensive experience with commercial leasing, Ms. Stenman primarily assists landlords of office, industrial and retail assets in negotiating and drafting lease documents, including build to suit leases, and handling landlord/tenant matters. She is nimble and well-versed in the many issues that impact commercial leasing transactions and can anticipate challenges to set her clients up for success. Ms. Stenman’s practice is nationwide and concentrates predominately on large industrial projects such as warehouses, distribution centers and manufacturing facilities.
Ms. Zana’s commercial real estate clients are situated throughout the U.S. with a focus on New York’s tri-state area, and include private developers, public companies, institutional owners, banks, and lessees of millions of square feet of real estate across the country in the luxury residential, mixed-use, retail, commercial office, data centers and colocation facilities, hotel and hospitality, healthcare and higher education industries. Her specific experience and areas of focus include: representing public and private companies that use millions of square feet of real estate, in negotiating build-to-suit and credit-tenant office leases, development agreements and state tax incentive agreements; acquiring, selling, financing and leasing data centers and colocation facilities; negotiating ground leases; negotiating retail leases on behalf of developers and the end retail users; arranging for and negotiating debt and equity financing; and negotiating corporate- and property-level acquisitions and sales.
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
-
Date + Time
- event
Thursday, February 19, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Overview of the BTS process
A. Pros and cons
B. Due diligence process
C. Lease types
1. Single, double, and triple net
2. Developer agreement
3. Others
II. Negotiating and drafting the BTS lease: key terms and considerations
A. Parties to the lease
B. Premises description
C. Lease term
D. Renewal options
E. Commencement date vs. completion date
F. Rent amount
G. Taxes
H. Use/restrictions
I. Plans/approvals/change orders
J. Maintenance and repair
K. Purchase options
L. Warranties
M. Termination
N. Work letter/scope of work
O. Other considerations
III. Best practices for practitioners
The panel will review these and other important issues:
- Under what circumstances should counsel and their clients consider a BTS lease?
- What are the risks and benefits of a BTS lease for landlords/developers? For tenants?
- What types of leases are used for a BTS project?
- What terms and considerations are unique to BTS leases as compared to standard commercial leases?
- What are best practices for mitigating risks for each party?
