7R Glossary
Built-to-Own (BTO)
What should you know?
The Built-to-Own model is chosen by companies that view real estate as a key component of their fixed assets. Unlike commercial leasing, the investor incurs capital expenditures (CAPEX) during the construction phase but gains full decision-making autonomy and eliminates long-term rental obligations (OPEX). The building is tailored from the ground up to the company’s process architecture—from the site layout to advanced production lines.
The BTO process begins with the selection of a site and a detailed assessment of the investor’s needs. The developer handles the complex administrative procedures, including the preparation of construction plans, obtaining a building permit, and securing environmental approvals. The developer is then responsible for general contracting and technical acceptance, handing over the facility—ready for operation—to the investor.
BTO is primarily used in sectors with specialized and stable processes: heavy industry, pharmaceuticals, the automotive industry, and advanced manufacturing. Variations of this solution include projects built on land already owned by the investor or projects that integrate manufacturing, research and development (R&D), and the company’s corporate offices.
Built-to-Own (BTO) in Practice: 7R
7R supports companies in the Built-to-Own process, drawing on its extensive engineering experience and knowledge of real estate development procedures in Poland. The developer assumes the role of an executive partner, comprehensively managing the project from the analysis of the site’s market potential to the delivery of a “turnkey” facility. Buildings developed by 7R under the BTO model are designed using high-quality, environmentally friendly solutions (7R Green Standard), which ensures low total cost of ownership (TCO) and preserves the property’s high value over the long term.
BTS vs. BTO - The Key Differences
| Criterion | Built-to-Own (BTO) | Built-to-Suit (BTS)Built-to-Suit (BTS)Built-to-Suit (BTS) is a model for developing commercial real estate—most commonly warehouse or industrial properties—that are designed and built from the ground up to meet the specific, individual requirements of a particular tenant. Unlike ready-made speculative space, a BTS facility is built to order, taking into account the client’s unique technological processes, layout requirements, and technical specifications.Read the full definition → |
|---|---|---|
| Ownership of the property | Investor / Client | Developer / Fund (the client is a tenant) |
| Financial Structure | Capital Expenditures (CAPEX) | Operating expenses (OPEX – rent) |
| Design Adjustment | 100% in line with the investor's requirements | 100% tailored to the tenant's requirements |
| Location Flexibility | Low (long-term commitment to the property) | Average (depending on the length of the lease) |
| Facility Management | From the investor's perspective | From the developer's / property manager's perspective |
Frequently Asked Questions
The BTO model is more cost-effective for companies with a stable market position that have available capital and plan to use the facility for several decades. It is also chosen when the specific nature of the facility (e.g., heavy manufacturing, unique installations) makes it difficult to re-market the building on the rental market.
Yes, as part of the BTO service, the developer conducts a location analysis, advises on the selection of a lot, and verifies its legal status, utility availability, and zoning regulations before beginning the design process.
Working with an experienced developer optimizes costs and shortens construction time. The developer assumes the administrative risks, optimizes bidding processes for materials and construction, and ensures compliance with rigorous building and environmental standards.