Land development takes longer than finding opportunities in the market. Experienced developers try to minimize the lead times by taking entitlement risks.  Most Occupiers and Investors require entitlements and it is one of several rewards the developer deserves.  In land development deals, timing is a critical factor. Generally the Best Time to Strike is right after entitlements have been obtained and before a Capital Partner has been introduced. Some developers will prefer to complete the entire process to final disposition of the leased asset. Others can justify taking an early profit depending on capital commitments.

Normally centrally located near population densities. Older buildings and many are obsolete but still worth more than land value. Location makes these buildings ideal for ecommerce and production where labor is a critical input.  Often near public transportation and close to city centers. Buildings are often repurposed and redeveloped for other uses. Location is an essential factor for Occupiers. 

Private Equity uses a similar structure whether it's a big fund of a one-off investment.  Investors receive market returns and a large amount of the upside. General partners receive a promotion reward for finding, creating, and managing the investment.  Profits are either returned to investors or reinvested.

One of  more popular strategies and entails less risk is to have an Occupier In Tow. It is very common in build-to-suit and major corporations use this strategy when developing major distribution facilities. It generally reduces the cost of capital all around and removes much of the uncertainty. Occupiers benefit with cheaper rent and more favorable terms for a brand new building. Other deals can be structured the same way  if there is good credit and lease term.

One of the most common reasons for Occupiers to move. In particular, privately owned companies as they either try to lower costs or trade their older infill building for a new one in greenfield development.  As Occupiers grow, a regional strategy replaces a local one. This example is my most familiar when a centrally based local company moves to the Inland Empire or even out of state. The same dynamics occur in many other major industrial markets. The high cost of infill buildings  allows occupiers to make this trade and earn a profit.