“[…] developers must understand the users and their needs. Without users, buildings – no matter how aesthetically pleasing or how theoretically functional – have no value.”
What is Real Estate Development/Land Development?
Real estate development is the continual reconfiguration of the built environment to meet society’s needs.
The 8 Stages Non-linear Process of Real Estate Development
Inception of an Idea: market research, problem solving, creating
Refinement of the Idea: site selection, project design
Feasibility: public and private review
Contract Negotiation: contractors, tenants, regulators
Formal Commitment: contracts and entitlements
Completion and Formal Opening: marketing , sales
Property, Asset, and Portfolio Management” tenants and technology
Alternative Development Models
Equilibrium Model: focus on market process
Agency Models: focus on actors
Structure Models: focus on political or economic forces
The 4 Key Constituencies
The public, capital markets, development team, and space users.
What Are Principles?
Standards of practice that promote success, good city design, and ethical behavior.
Major players in the development process
Private sector developers
Public sector developers
– Structural engineers
– Mechanical engineers
– Electrical engineers
– Civil engineers
– Environmental engineers
Attorneys and accountants
Real estate leasing agents and sales brokers
Marketing and public relations consultants
Why Their Projects Involve Both the Public and Private Sectors?
Real estate development is a highly regulated process. Property law, public infrastructure, financial market rules, zoning, building permits, and impact fees are all part of the public sector’s realm.