A building constructed by a developer before occupancy by an occupant is called?

A building constructed by a developer before occupancy by an occupant is called?

• A. Owner-built
• B. Speculative
• C. Turnkey
• D. Prebuilt

Answer: (B)

Constructing a building before there is a specific occupant, with the aim of selling or leasing it once it’s finished, is building on speculation. The developer takes on the risk that there may not be a buyer or tenant for the completed structure, so the project is started in advance to market it after completion. This differs from an owner-built project, which is built for the owner’s own use, and from off-site “prebuilt” or modular concepts, which refer to how components are manufactured rather than the timing of occupancy. Turnkey describes a completed, ready-to-occupy property delivered to a buyer, but it doesn’t specify that the construction occurred before a particular occupant was identified. So the best term for this situation is speculative.

Constructing a building before there is a specific occupant, with the aim of selling or leasing it once it’s finished, is building on speculation. The developer takes on the risk that there may not be a buyer or tenant for the completed structure, so the project is started in advance to market it after completion. This differs from an owner-built project, which is built for the owner’s own use, and from off-site “prebuilt” or modular concepts, which refer to how components are manufactured rather than the timing of occupancy. Turnkey describes a completed, ready-to-occupy property delivered to a buyer, but it doesn’t specify that the construction occurred before a particular occupant was identified. So the best term for this situation is speculative.