Which is better: BTS or BTO?

BTS vs BTO – warehouses for demanding clients

BTO warehouses and BTS facilities are always designed and constructed to meet the specific requirements of clients who need tailor-made solutions. However, they differ in some key aspects, which is why choosing the right option matters so much. Each has its own advantages and disadvantages and each meets slightly different needs.

Differences between BTO and BTS

First, let us have a look at BTO (Built-To-Own) warehouses. A BTO project is tailored exactly to the specific needs of an investor who owns it. BTO schemes are ideal for companies that:

● need space that is perfectly suited to their needs and over the longer run,

● want to have full control over a property and how it is used,

● are able to make a substantial initial investment to develop such a project,

● expect to have a property that is very likely to grow in market value over time (provided it is developed in an appropriate location),

● are aware of construction risks and potential delays, and even a budget overrun,

● do not need a warehouse for immediate occupancy,

● have a stable market position giving them confidence that such a project is the right strategic step for them, and

● want to make a long-term commitment to such a warehouse for up to twenty years.

What about BTS (Built-To-Suit) warehouses? They are an option for companies that:

● need warehouse space tailored to their individual needs but do not wish to make large initial investments that are typically required for BTO projects,

● can wait until such space is built for them, i.e. companies that do not need a warehouse for immediate occupancy,

● are confident of their market position and are ready to commit to a longer lease of at least 8-10 years, and 

● have developed a certain strategy and know that a warehouse in a specific area is a good option for them.

If you are unsure which option would be the best for your business, get in touch with our experts.

BTS or BTO?

There is no clear-cut answer to this question as everything depends on your business needs and on how much you can invest in building your warehouse space. Without a shadow of a doubt, costs are one of the biggest barriers to developing tailor-made projects. Typically only the biggest companies with an established market position can afford BTO warehouses. BTS projects are not a cheap option either. However, given the benefits they can bring, they are definitely worth considering.

We recommend BTS and BTO warehouses to companies that would like to use our services. To find out more, please get in touch with us today.