Benefits of an Industrial Build to Suit Manager in Northern Nevada0

Posted by Thomas Miller, CCIM

build-to-suitLast week, we shared a few highlights from our second quarter Market Advisor, including the ongoing interest of outside investors to pour capital resources into northern Nevada. One of the side effects of demand in today’s market is a shortage of available locations. The solution? Building to suit. There are three general approaches to build-to-suit projects, one of which includes a design-build manager. Here’s why that’s important.

Traditional Build to Suit

Traditionally, when a business owner is ready to build a facility to suit company needs, a designer-builder is chosen and work begins. This means that the  business owner works with a single entity, which can present enormous drawbacks. The risk lies in being able to determine whether you’re truly getting the right design and the best price and the best value. That’s the trouble with failing to shop around.

Aggressive Build to Suit

If not shopping around is problematic, it seems logical that seeking multiple design-build proposals is a smart move. Unfortunately, when a designer-builder is forced to compete for a project, he understands that price plays a critical role in the selection process. And so, the builder will likely use any avenue to present the lowest possible price for the project. That may sound great at first glance, but it can mean important details like quality and scope are compromised. What’s more, it’s likely that these compromises won’t be evident to the owner until much later, when price change orders begin cropping up in response to requests for higher quality materials. This is usually when the owner understands what his low bidder really costs.

Strategic Build to Suit

When a business owner uses a qualified design-build manager for a build-to-suit project, he can remain in close control of the process from meeting through completion. That’s the benefit of an experienced manager, along with an assortment of valuable services.

Design-build bidding specification: This hybrid document carefully defines the project’s requirements, while also allowing the designer-builder to find solutions to the owner’s project in a cost-effective way. This document gives the owner a significant advantage during the bidding process.

Bid analysis: This is another important service of a qualified design-build manager. It’s critical that the language in proposals be reviewed carefully to ensure that all of the owner’s requests – laid out in the bidding documents – will be met.

Price savings: The benefits of using a design-build manager become clear when you compare the three approaches to build-to-suit projects. Consider this breakdown:

miller-industrial-properties-build-to-suit
  • Option one is a cost breakdown for hiring an architectural firm with little industrial experience (the traditional approach).
  • Option two outlines the costs of hiring a builder who works just a few architectural firms (another traditional approach).
  • Option three is using a design-build manager to find the best possible builder-designer without compromises on quality (the strategic approach).

If you’re ready to learn more about the value of using a build-design manager, contact Miller Industrial Properties today. We can share examples of our recent projects and offer specifics of how we might mange yours.

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About the Author

Thomas Miller, CCIM

Thomas Miller, CCIM is the president and broker of Miller Industrial Properties in Reno, Nevada. He has worked in industrial real estate since 1991, with 15 years of previous experience designing and building industrial warehousing and manufacturing facilities in the northern Nevada market. Contact Tom at tom@mipnv.com or 775-742-9891.

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