Design/build facilities becoming more popular

Real Estate Weekly, May 21, 2003 by David Poloni

With interest rates at historic lows, more and more companies are electing to construct and own a design/build facility, which constitutes ownership of a brand new building for less than what rent would be in a speculative or second generation building. The only obstacles standing in the way of a new facility are time, effort and expertise. By hiring a design/build company to deliver a building turn-key, business owners and executives can focus on growing their businesses, while the design/build specialist does everything from site selection to approvals to design to construction. Our company, J.G. Petrucci Co., Inc., continues to experience significant demand for design/build solutions and anticipate this trend will continue to accelerate in the future.

A quality design/build company should offer its clients a simple and efficient way to own their own building. When considering a design/build facility, choose a company that specializes in the service. This company should offer the following:

* Site Selection. The identification of the most logical, cost effective location through an in-depth analysis of a client's business, operational and real estate objectives

* Contract Negotiation. In-house legal services to assist clients with the negotiation of a favorable land purchase agreement and swiftly walk clients through the development approval process. Business development personnel should also be available to identify suitable state, county and municipal incentive programs.

* Design. In-house design team to create and design a facility that addresses all of a client's operational requirements. The design builder should have architectural and civil engineering services available from the outset of the project.

* Due Diligence and Approvals. Due diligence personnel to conduct an in-house analysis on the land site to ensure that the zoning environmental, soil conditions, traffic patterns and demographics am suitable for the intended use.

* Construction. Construction and general contracting services to deliver a first class facility on time and within budget.

An example of a successful design/build project completed by J.G. Petrucci is the Dancker, Sellew & Douglas Building in Branchburg, New Jersey Dancker, Sellew & Douglas retained Petrucci as its design/builder to identify an appropriate site and design and build a state-of-the-art distribution center for its growing needs. Petrucci met Dancker, Sellew & Douglas' requirements by locating a suitable site and providing due diligence services.

Petrucci's design team designed the building with input from the client and obtained all zoning and land development approvals from the Township. The construction team constructed a 100,000-SF building in two phases of 50,000 SF, each on time and within budget.

In today's low interest rate environment, companies are turning to design/build facilities, which are often times more cost effective than renting space that does not necessarily meet specific operational needs. If you properly choose a design/build company that can offer all of these services, your new facility should be delivered in a timely and efficient manner. In the current economic conditions, if you are looking for customized space, a design/build facility is the smart way to gain an asset and meet your business objectives as well.