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Considerations for Determining the Highest and Best Value for Your Investment on Your Next Development Project

11.27.24

In the construction and development industries, the question isn’t just about what can be built on a piece of land—it’s about what should be built to achieve the highest and best value. For developers operating in the mid-Atlantic region, this balancing act requires more than just a surface-level analysis. It demands a nuanced understanding of market trends, community needs, and regulatory landscapes. The reward? Projects that don’t just deliver returns but also leave a lasting positive impact on the communities they serve. 

Here’s how you can approach your next development project with that goal in mind. 

Look Beyond the Numbers: Market Analysis and Feasibility Studies 

Location is everything in real estate—but understanding what makes a location valuable requires a deep dive into the market. A thorough market analysis is essential for determining demand and understanding the demographic and economic trends within a specific area. In the mid-Atlantic region, cities like Richmond and Norfolk are experiencing population growth, creating opportunities for mixed-use developments and residential projects. But without a solid market analysis, developers risk misreading demand. 

Take Richmond’s bustling Scott’s Addition neighborhood, for instance. Once an industrial district, it’s now a hotspot for residential and commercial projects, thanks to its mix of breweries, restaurants, and coworking spaces. Developers who identified the area’s potential early—and aligned their projects with local preferences—reaped the rewards. This market analysis combs through population growth, economic drivers, and the competitive landscape, to facilitate data-driven decisions that ensure a project meets market demands.  

However, market analysis is just one piece of the puzzle. Feasibility studies dig deeper into site-specific factors—like zoning regulations, environmental constraints, and infrastructure needs—that can make or break a project. In fast-growing areas like Central Virginia, these studies are revealing the need for additional infrastructure investments to support new developments. Ignoring these insights can lead to costly delays or missed opportunities. 

Master the Maze: Navigating Zoning and Regulatory Considerations 

Understanding zoning laws and permitting requirements is a non-negotiable step in any development project. These regulations dictate what can be built and where, affecting everything from building height to design aesthetics. 

In coastal areas like Virginia Beach, zoning ordinances prioritize resilience and environmental protection. Developers need to account for height restrictions and floodplain considerations—not just to meet regulatory requirements but to ensure long-term viability. 

Proactive collaboration with local authorities can make all the difference. Oftentimes, developers who engage with city officials early will gain access to tax incentives and zoning variances that can enhance a project’s profitability. Building these relationships also helps developers stay ahead of potential regulatory changes that could impact future phases. 

Choose Wisely: Site Selection and Land Use Efficiency 

The right site can be the difference between a project that thrives and one that struggles to get off the ground. It’s not just about square footage—it’s about proximity to infrastructure, accessibility to utilities, and the site’s unique characteristics. Evaluating these characteristics allows for realistic budget forecasting and informs the scale and design of the project. For extended details on site selection, refer to our article, The Developer’s Guide to Site Selection, written by Brian Jenkins, President of Development at Hourigan.  


Deepwater Industrial Park is a prime example of why site selection is extremely important. As a distribution facility, being situated 2.2 miles from the Richmond Port Terminal and the high visibility from Interstate 95, this site is easy to get in and out for product and material distribution. As the main ground shipping route for the east coast, the site is accessible to over 40% of the U.S. population within a day’s drive. 

Effective land use planning also plays a crucial role in maximizing buildable space without compromising environmental sustainability. Integrating green spaces, implementing energy-efficient design practices, and considering stormwater management options add value to the project and align with long-term environmental goals.  Sustainable land use—including green spaces and energy-efficient design—will boost a development’s appeal. Investors and residents alike are drawn to projects that prioritize environmental responsibility without sacrificing functionality. 

Building Bridges: Community and Stakeholder Engagement 

No development exists in a vacuum.  Engaging with local communities from the outset can be the key to a project’s success. Public meetings, open forums, and transparent communication help developers address concerns and build goodwill.  

Community-centered amenities aren’t just a nice-to-have; they’re a competitive advantage. Projects that include parks, retail spaces, and eco-friendly features stand out in the marketplace and foster long-term community buy-in. 

The Bottom Line: Delivering Lasting Value 

Determining the highest and best value for your investment is a balancing act that requires careful analysis, regulatory insight, and getting involved with the surrounding community. By thoroughly evaluating market dynamics, understanding zoning requirements, optimizing site use, and engaging with stakeholders, developers can ensure their projects provide value that endures for both investors and the community at large. In the mid-Atlantic, growth opportunities abound, but the path to success lies in thoughtful, forward-thinking development. The question isn’t just what you can build—it’s what you should build to leave a lasting legacy. 

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