diff --git a/lib/spack/docs/environments.rst b/lib/spack/docs/environments.rst
index 48ff06d27e..963903ec64 100644
--- a/lib/spack/docs/environments.rst
+++ b/lib/spack/docs/environments.rst
@@ -416,6 +416,23 @@ that git clone if ``foo`` is in the environment.
 Further development on ``foo`` can be tested by reinstalling the environment,
 and eventually committed and pushed to the upstream git repo.
 
+If the package being developed supports out-of-source builds then users can use the
+``--build_directory`` flag to control the location and name of the build directory. 
+This is a shortcut to set the ``package_attributes:build_directory`` in the
+``packages`` configuration (see :ref:`assigning-package-attributes`).
+The supplied location will become the build-directory for that package in all future builds.
+
+.. warning::
+   Potential pitfalls of setting the build directory
+    Spack does not check for out-of-source build compatibility with the packages and
+    so the onerous of making sure the package supports out-of-source builds is on
+    the user.
+    For example, most ``autotool`` and ``makefile`` packages do not support out-of-source builds
+    while all ``CMake`` packages do.
+    Understanding these nuances are on the software developers and we strongly encourage
+    developers to only redirect the build directory if they understand their package's
+    build-system.
+
 ^^^^^^^
 Loading
 ^^^^^^^
diff --git a/lib/spack/docs/packages_yaml.rst b/lib/spack/docs/packages_yaml.rst
index bfd7f5ca2b..ab839500f8 100644
--- a/lib/spack/docs/packages_yaml.rst
+++ b/lib/spack/docs/packages_yaml.rst
@@ -647,6 +647,8 @@ manually placed files within the install prefix are owned by the
 assigned group. If no group is assigned, Spack will allow the OS
 default behavior to go as expected.
 
+.. _assigning-package-attributes:
+
 ----------------------------
 Assigning Package Attributes
 ----------------------------
diff --git a/lib/spack/spack/cmd/develop.py b/lib/spack/spack/cmd/develop.py
index 13a265af12..0c9db3274c 100644
--- a/lib/spack/spack/cmd/develop.py
+++ b/lib/spack/spack/cmd/develop.py
@@ -8,6 +8,7 @@
 import llnl.util.tty as tty
 
 import spack.cmd
+import spack.config
 import spack.spec
 import spack.util.path
 import spack.version
@@ -21,6 +22,7 @@
 
 def setup_parser(subparser):
     subparser.add_argument("-p", "--path", help="source location of package")
+    subparser.add_argument("-b", "--build-directory", help="build directory for the package")
 
     clone_group = subparser.add_mutually_exclusive_group()
     clone_group.add_argument(
@@ -151,4 +153,11 @@ def develop(parser, args):
     env = spack.cmd.require_active_env(cmd_name="develop")
     tty.debug("Updating develop config for {0} transactionally".format(env.name))
     with env.write_transaction():
+        if args.build_directory is not None:
+            spack.config.add(
+                "packages:{}:package_attributes:build_directory:{}".format(
+                    spec.name, args.build_directory
+                ),
+                env.scope_name,
+            )
         _update_config(spec, path)
diff --git a/lib/spack/spack/test/cmd/develop.py b/lib/spack/spack/test/cmd/develop.py
index 73741ddbe7..7d01853fd4 100644
--- a/lib/spack/spack/test/cmd/develop.py
+++ b/lib/spack/spack/test/cmd/develop.py
@@ -9,6 +9,7 @@
 
 import llnl.util.filesystem as fs
 
+import spack.config
 import spack.environment as ev
 import spack.spec
 from spack.main import SpackCommand
@@ -21,7 +22,7 @@
 
 @pytest.mark.usefixtures("mutable_mock_env_path", "mock_packages", "mock_fetch", "mutable_config")
 class TestDevelop:
-    def check_develop(self, env, spec, path=None):
+    def check_develop(self, env, spec, path=None, build_dir=None):
         path = path or spec.name
 
         # check in memory representation
@@ -41,6 +42,12 @@ def check_develop(self, env, spec, path=None):
         else:
             assert yaml_entry["path"] == path
 
+        if build_dir is not None:
+            scope = env.scope_name
+            assert build_dir == spack.config.get(
+                "packages:{}:package_attributes:build_directory".format(spec.name), scope
+            )
+
     def test_develop_no_path_no_clone(self):
         env("create", "test")
         with ev.read("test") as e:
@@ -72,6 +79,12 @@ def test_develop_no_args(self):
             develop()
             self.check_develop(e, spack.spec.Spec("mpich@=1.0"))
 
+    def test_develop_build_directory(self):
+        env("create", "test")
+        with ev.read("test") as e:
+            develop("-b", "test_build_dir", "mpich@1.0")
+            self.check_develop(e, spack.spec.Spec("mpich@=1.0"), None, "test_build_dir")
+
     def test_develop_twice(self):
         env("create", "test")
         with ev.read("test") as e:
diff --git a/share/spack/spack-completion.bash b/share/spack/spack-completion.bash
index ebcab9683e..b268afa76c 100755
--- a/share/spack/spack-completion.bash
+++ b/share/spack/spack-completion.bash
@@ -999,7 +999,7 @@ _spack_dev_build() {
 _spack_develop() {
     if $list_options
     then
-        SPACK_COMPREPLY="-h --help -p --path --no-clone --clone -f --force"
+        SPACK_COMPREPLY="-h --help -p --path -b --build-directory --no-clone --clone -f --force"
     else
         _all_packages
     fi
diff --git a/share/spack/spack-completion.fish b/share/spack/spack-completion.fish
index b2c0a89362..20f0ec837e 100755
--- a/share/spack/spack-completion.fish
+++ b/share/spack/spack-completion.fish
@@ -1405,12 +1405,14 @@ complete -c spack -n '__fish_spack_using_command dev-build' -l reuse-deps -f -a
 complete -c spack -n '__fish_spack_using_command dev-build' -l reuse-deps -d 'reuse installed dependencies only'
 
 # spack develop
-set -g __fish_spack_optspecs_spack_develop h/help p/path= no-clone clone f/force=
+set -g __fish_spack_optspecs_spack_develop h/help p/path= b/build-directory= no-clone clone f/force=
 complete -c spack -n '__fish_spack_using_command_pos_remainder 0 develop' -f -k -a '(__fish_spack_specs_or_id)'
 complete -c spack -n '__fish_spack_using_command develop' -s h -l help -f -a help
 complete -c spack -n '__fish_spack_using_command develop' -s h -l help -d 'show this help message and exit'
 complete -c spack -n '__fish_spack_using_command develop' -s p -l path -r -f -a path
 complete -c spack -n '__fish_spack_using_command develop' -s p -l path -r -d 'source location of package'
+complete -c spack -n '__fish_spack_using_command develop' -s b -l build-directory -r -f -a build_directory
+complete -c spack -n '__fish_spack_using_command develop' -s b -l build-directory -r -d 'build directory for the package'
 complete -c spack -n '__fish_spack_using_command develop' -l no-clone -f -a clone
 complete -c spack -n '__fish_spack_using_command develop' -l no-clone -d 'do not clone, the package already exists at the source path'
 complete -c spack -n '__fish_spack_using_command develop' -l clone -f -a clone