Which statement best contrasts a build-to-suit lease with ready-to-occupy space?

• A. Build-to-suit constructs tailored space funded by the landlord; ready-to-occupy is pre-built with standard finishes and quicker move-in
• B. Ready-to-occupy space is tailored by the landlord; build-to-suit has standard finishes
• C. Build-to-suit has no tenant customization; ready-to-occupy is fully customized
• D. Build-to-suit is always shorter term; ready-to-occupy is always longer term

Answer: (A)

The main idea is how much the space is customized for the tenant and how quickly it can be occupied. In a build-to-suit arrangement, the landlord constructs a space tailored to the tenant’s specifications, often funded by the landlord and paid through the lease—so everything can be designed to fit the tenant’s needs. This customization usually means a longer lead time before move-in. In contrast, ready-to-occupy space is already built with standard finishes and a typical layout, allowing the tenant to move in quickly with little to no customization.

Option 1 is the best because it states that build-to-suit creates tailored space funded by the landlord, while ready-to-occupy is pre-built with standard finishes and enables a quicker move-in. The other statements mix up who does the customization or mischaracterize the level of finish and the immediacy of occupancy.