| Benefits of Third Party Development
Utilizing a third party development firm for a healthcare or higher education project offers a wide variety of benefits to the institution. First and foremost among these benefits is vastly improved speed to market. In many instances, a third party development approach can reduce the time spent securing approvals and designing the project by 50% to 75%. This approach can help accelerate revenue generation, avoid expensive construction cost escalation, and take advantage of lower interest rates (particularly in a rising rate environment).
Through the use of ground leases and purchase options, an institution can maintain control of the project and achieve the same results as it would in a typical owner-controlled project. The use of a developer can provide a useful buffer between the institution and the building’s end-users. If greater control is desired, the institution can provide property management and maintenance for the project itself. |
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