How to Use the BTS (Build-to-Suit) Calculator

The BTS calculator helps landlords evaluate the financial viability of constructing a building tailored to a tenant's needs. Enter your construction investment, phased delivery areas, rental terms and escalation to get instant projections of rent income, ROI and payback period.

Key Features

• Phased Delivery: Model two construction phases with separate areas and start years
• Escalation Modelling: Configure escalation percentage and frequency to project rising rent income
• Security Deposit Tracking: Automatic calculation of per-phase deposits collected from the tenant
• ROI & Payback: Simple ROI, annual yield, and the exact year when cumulative rent covers your investment
• Year-by-Year Rental Schedule: Full projection table matching standard Annexure B format

Understanding Build-to-Suit Economics

BTS deals are common in commercial real estate where institutions like schools, hospitals, and warehouses need purpose-built spaces. Key factors include:

• Construction Investment: The total capital outlay for land and building that the landlord finances
• Phased Occupancy: Delivering floor area in phases allows earlier rent income while construction continues
• Long-term Lease: Tenures of 10–30 years provide stable income and attractive overall ROI
• Escalation Compounding: Even a modest 4% every 3 years grows rent meaningfully over a long tenure

Why Use PayPerSqft's BTS Calculator?

Our calculator gives landlords and investors a clear financial picture of build-to-suit projects. Whether you're constructing for a school, logistics park, or corporate campus, get accurate phase-wise rent projections and investment returns. Download or print your analysis for investor presentations and bank proposals.