What development timelines align with tenant delivery schedules and resale goals?

Aligning development timelines with tenant occupancy expectations and future resale objectives is critical for optimizing cash flow, lease-up success, and asset value at exit. Well-planned timelines reduce holding costs, ensure timely possession, and create a window for stable rental history before asset disposition.

Below are the key timeline benchmarks and how they support tenant delivery and investor resale goals:

1. Pre-Development Planning and Approvals (3–6 Months)

• Activities include:
  
  • Title due diligence
    
  • Zoning verification and subdivision approval
    
  • Environment and fire NOCs, utility applications
    
• Why it matters:
  
  • Institutional tenants and buyers expect legally clear, compliance-ready land.
    
  • Early engagement reduces the risk of timeline slippage.

2. Design Finalization and Pre-Lease Commitments (2–4 Months)

• Activities include:
  
  • Build-to-suit design finalization with tenant input
    
  • Lease MoU/term sheet execution
    
  • Site mobilization planning
    
• Why it matters:
  
  • Helps sync civil drawings with tenant specs.
    
  • Early leasing improves exit valuation predictability.

3. Construction and Infrastructure Delivery (9–12 Months)

• For standard BTS warehouse/factory: 6–9 months
  
• For specialized fit-outs (pharma, cold chain, etc.): 9–15 months
  
• Internal road, drainage, and utility readiness should run in parallel.
  
• Why it matters:
  
  • On-time delivery aligns with the tenant’s commissioning, machinery import, or production timelines.
    
  • Avoids rent-free period extensions or late possession penalties.

4. Operational Stabilization and Lease Commencement (1–2 Months)

• Activities include:
  
  • Final inspections, occupancy certificates (OC), and tenant handover
    
  • Initial rent invoicing and service agreements
    
• Why it matters:
  
  • Establishes a track record of rent receipts, boosting credibility with resale buyers.
    
  • Allows adjustments before final valuation or sale listing.

5. Resale or Exit Planning Window (Year 2–5 Post-Handover)

• Optimal resale happens when:
  
  • Tenant has completed 12–18 months of occupancy.
    
  • Minimum 3–5 years of lease tenure remain.s
    
  • Market rental escalations have taken effect.t
    
• Why it matters:
  
  • Buyers prefer stabilized income assets with visible tenancy performance.
    
  • IRR targets for developers and funds are better met after rent growth begins.