For organizations considering a change in their built environment, a real estate developer plays a vital role on the project team. In the same way that a great quarterback can turn a group of skilled individual performers into a winning team, a developer marshals the necessary resources and experts to meet the client’s needs at every step from initial concept to project completion.
What is real estate development?
In a nutshell, real estate development is everything that leads up to construction. A developer’s goal is to create an economically viable project that serves a need in their community. The role of a real estate developer includes identifying sites for construction, evaluating feasibility to determine the best use of land as it compares to market values, planning site designs, financing loans, and leasing and releasing property, to name a few.
The developer serves as the client’s guide along two main paths related to their real estate needs:
1. Visioning: When someone owns a building or piece of land and needs a new use for it, a developer will help determine the best use of the land. It could be a hotel, an apartment building, a nursing home—the developer brings creative solutions to the table. They can envision how a new building may transform a community and imagine the opportunity it may provide for an area. Developers also take into consideration zoning regulations: What are the site restrictions? Height limits? Green space requirements? They will rely on market research and analysis to determine what type, size and cost of a building work best for the site.
2. Site selection: When a company or individual is looking to build in a particular area, they will partner with a developer to find the best site for their project. As an example, an institution may come to a developer in need of a new office space. Sometimes the developer will assist them in finding the land necessary to build the office space. Other times, there may already be an appropriate new office space in the market that the developer will secure, renovate the property as needed and sell or rent it to the organization.
So why partner with a real estate developer?
For organizations considering real estate-related initiatives, a seasoned development partner can provide the invaluable expertise and insight that helps to ensure a successful outcome.
