7R Glossary
Built-to-Suit (BTS)
What should you know?
The Built-to-Suit option was developed in response to the needs of companies whose specific operational requirements prevent them from functioning effectively in standard logistics parks. Traditional warehouse modules offer standardized specifications (e.g., floor load capacity, storage height), whereas BTS allows for the customization of every element—from the plot’s location and utility availability to a non-standard column grid, reinforcements for heavy machinery, or dedicated refrigeration and freezer zones.
In practice, the process of developing a BTS facility begins with a detailed analysis of the tenant’s operational needs, based on which the developer secures the land, obtains the necessary building and environmental permits, and then delivers a “turnkey” facility. The tenant signs a long-term lease agreement (often for 10–15 years or longer), which allows them to avoid tying up their own capital in real estate (converting CAPEX to OPEX) while retaining full control over the building’s functionality.
This solution is primarily used by companies in the e-commerce sector (which require advanced automation and mezzanines), light manufacturing (which require increased power allocation and dedicated installations), and contract and pharmaceutical logistics. Variations of BTS include “sale-and-leaseback” projects (where the tenant sells the property to the developer and immediately leases it back) or hybrid buildings that combine production space with a corporate headquarters.
Built-to-Suit (BTS) in Practice: 7R
For years, 7R has specialized in delivering technologically advanced built-to-suit facilities for market leaders in the manufacturing, logistics, and e-commerce industries. Thanks to its flexible approach and team of engineers, 7R delivers custom-designed projects equipped with advanced sustainability solutions (Green Standard 7R), such as photovoltaic installations, heat recovery systems, and BREEAM certification at the Excellent or Outstanding level. Examples of such projects include dedicated distribution centers and manufacturing facilities built on a BTS basis at key transportation hubs throughout Poland.
BTS vs. Speculative Building – Key Differences
| Criterion | Built-to-Suit (BTS) | Speculative Building (Multi-tenant Warehouse) |
|---|---|---|
| Tailoring to Needs | 100% custom design (layout, systems, high-bay storage) | Standard area, limited modification |
| Lead time | Longer (usually 10–14 months from the date the land is secured) | Immediate or short-term (available right away) |
| Term of the Lease Agreement | Long-term (usually 10–15 years) | Medium-term (usually 3–5 years) |
| Location | Recommended or selected specifically to meet the customer's needs | The developer's existing logistics park |
| Tenant's Initial Expenses | Low (the developer covers the construction costs) | Low |
Frequently Asked Questions
The main difference lies in ownership and financing. In the BTS (Built-to-Suit) model, the developer builds a custom facility but retains ownership of it (or sells it to a fund), and the client uses the building under a lease agreement. In theBTO (Built-to-Own) model, a commercial real estate project—such as a warehouse or manufacturing facility—is designed and built by the developer specifically for the client’s ownership. In this model, the investor becomes the sole owner of the property upon completion of construction, financing the entire project with its own funds or a bank loan.Read the full definition → (Built-to-Own) the developer carries out the project on behalf of the client, who finances the construction from the outset and becomes the sole owner of the property.
The total duration of a BTS project is typically between 10 and 14 months. This period includes the conceptual phase, securing the site, obtaining permits (environmental approvals, building permits), and the construction and finishing phases themselves.
The BTS model is ideal for companies with specific technological or spatial requirements (e.g., those requiring high power allocation, non-standard warehouse heights, warehouse automation, or production lines) that plan to maintain a long-term presence at a given location and prefer to allocate capital toward business growth rather than real estate purchases.