Build-for-Rent

See also ‘Build-to-Rent‘.

In commercial real estate, Build-for-Rent (BFR) refers more generally to an investment approach where a developer undertakes the construction of a project with the explicit intention of leasing it out to one or more tenants.

Note that this term generally is not confined solely to residential developments, such as the single-family or duplex communities typical of the Build-to-Rent (BTR) model but extends to a variety of commercial properties including office, retail, industrial, etc.


Frequently Asked Questions about Build-for-Rent (BFR)

Build-for-Rent (BFR) is a commercial real estate investment approach where a developer constructs a project specifically with the intention of leasing it out to tenants rather than selling it.

While Build-to-Rent (BTR) generally refers to residential communities such as single-family rentals or duplexes, Build-for-Rent (BFR) is a broader term that encompasses all commercial property types—including office, retail, and industrial—that are built specifically for leasing purposes.

BFR can apply to a variety of commercial property types, including office buildings, retail centers, industrial facilities, and more—not just residential properties.

The goal is to generate long-term rental income by constructing and retaining ownership of the property rather than selling it post-construction.

Yes, BFR includes residential housing but is not limited to it. While it overlaps with the Build-to-Rent (BTR) model for residential development, BFR is more expansive and includes all real estate sectors intended for rental.

You can use the “A.CRE Build-to-Rent (BTR) Development Model (Updated May 2025)” which is listed under the related content for this glossary entry.



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