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NNN Build-to-Suit Development

Ground-up construction of single-tenant, triple net leased commercial properties across Florida. From site selection through disposition — we control the entire development cycle.

The Opportunity

300K+

Net new Florida residents annually

20%

Projected YoY increase in 1031 exchange volume

6.0-7.0%

Current NNN cap rates (vs. 5.0% pre-2022)

Florida's explosive growth, rising 1031 exchange activity, and expanded cap rates create the ideal window for NNN build-to-suit development. By controlling the development process from land acquisition through tenant placement and construction, we capture the full development spread between all-in cost basis and market valuation at stabilized cap rates.

Six-Phase Development Cycle

01

Site Identification

Source land parcels in high-growth Florida corridors through broker relationships, off-market deals, and municipal planning data. Target sites with strong traffic counts, favorable zoning, and proximity to residential rooftops.

02

Tenant Procurement

Engage national and regional tenant representatives to match sites with active expansion programs. Secure a Letter of Intent (LOI) and negotiate lease terms before committing to land acquisition.

03

Due Diligence & Entitlements

Conduct environmental (Phase I), geotechnical, and survey work. Secure zoning approvals, site plan approval, and building permits. Land purchase agreements are contingent on entitlement milestones.

04

Construction

Engage qualified general contractors through competitive bidding. Manage timelines, budgets, and quality using guaranteed maximum price (GMP) contracts. Target 6- to 9-month build cycles.

05

Lease Commencement

Deliver the completed building to the tenant, trigger lease commencement, and confirm rent payment. Obtain certificate of occupancy and stabilize the asset for sale.

06

Disposition

Market the stabilized, income-producing asset to 1031 exchange buyers, private investors, and institutional capital. Price at market cap rates to achieve the target development spread.

Each project is held in a single-purpose LLC. No land closing without an executed lease. GMP contracts cap construction risk.

Representative Pro Forma

Development Cost

Land Acquisition$350,000
Site Work & Utilities$175,000
Vertical Construction (9,100 SF)$1,092,000
Soft Costs (Arch, Eng, Permits)$135,000
Financing Costs$85,000
Contingency (5%)$92,000
Total Development Cost$1,929,000

Returns

Annual NNN Rent$130,000
Sale Cap Rate6.00%
Disposition Price$2,166,667
Gross Development Profit$237,667
Profit Margin on Cost12.3%
Annualized ROE (14-month cycle)10.5%

150-250 bps development spread | 20-35% profit margins | 12-18 month cycle

Diversified Tenant Mix

QSR / Fast Food

Chick-fil-A, McDonald's, Starbucks, Taco Bell, Popeyes

Cap: 4.75% - 5.75%Term: 15 - 20 years

Dollar / Discount

Dollar General, Dollar Tree, Family Dollar

Cap: 5.50% - 6.75%Term: 10 - 15 years

Auto Parts

AutoZone, O'Reilly, Advance Auto Parts

Cap: 5.25% - 6.50%Term: 15 - 20 years

Convenience / Gas

7-Eleven, Wawa, RaceTrac

Cap: 4.50% - 5.75%Term: 15 - 20 years

Medical / Healthcare

DaVita, Fresenius, Urgent Care, Dental

Cap: 6.00% - 7.25%Term: 10 - 20 years

Pharmacy

Walgreens, CVS

Cap: 5.50% - 7.00%Term: 20 - 25 years

Florida Target Markets

MarketGrowthCap RateKey Appeal
Orlando / KissimmeeStrong (2%+)5.25% - 5.75%I-4 corridor, population boom
Tampa / LakelandStrong (1.8%+)5.50% - 6.00%Suburban expansion, I-4 east corridor
JacksonvilleModerate-Strong5.75% - 6.25%Affordable land, logistics hub
Cape Coral / Ft. MyersStrong5.50% - 6.00%SW Florida growth corridor
Ocala / The VillagesVery Strong6.00% - 6.50%Retirement migration, retail underserved
Port St. LucieStrong5.75% - 6.25%Affordable SE Florida alternative

Strategy: Primary metros for tighter cap rates and liquidity. Secondary markets for higher yields and lower land basis.

Risk Mitigation

Construction OverrunsGMP contracts with 5% contingency and experienced GC vetting
Tenant LOI Falls ThroughNo land closing without executed lease; diversified tenant pipeline
Interest Rate MovementLocked construction rates; underwrite at conservative cap rates
Cap Rate ExpansionUnderwrite 25-50 bps above current market for downside protection
Entitlement DelaysPreference for pre-zoned sites; experienced land-use counsel

Multiple exit strategies: sell at stabilization, hold for income, portfolio sale, or refinance and distribute.

NNN Build-to-Suit Business Plan

Download our comprehensive business plan covering the full development model, pro forma economics, tenant requirements, target markets, financial projections, and risk mitigation strategy.

Download Business Plan (PDF)

Interested in NNN Development?

Whether you're an investor, landowner, or tenant looking for a build-to-suit partner in Florida — let's talk.

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