All that you want to know about commercial real estate development

david goodnight

Commercial development is always complex with various decision making processes to evaluate and make to ensure favorable near term and long term outcomes. Commissioning  an experienced development team in the initial phases of a project will generate an exponentially positive outcome in the viability and delivery of a completed project and the associated financial returns. Consider the following when looking to contract or partner with a commercial real estate developer:

  • Understanding a developer’s portfolio and history can guide your decision-making. It’s important  to understand the market and every data point that can have an impact on the risk and return of each project; including the selection of architects, engineers, general contractors, subcontractors, permitting consultants, property managers, brokers, and the navigation of guarantees, leases, acquisitions, financial modeling, and the general strengths and weaknesses of each involved party to deliver a project on time and with maximized efficiency. All of these selections are important to ensure you over deliver on the expectations to your tenants, lenders, and potential investors.
  • It’s important to perform extreme diligence on every party prior to engagement. Evaluating a company’s services, history, current and past employee feedback, legal records, and project completion scale will guide the process. It is beyond critical that a development team be in place to select and execute on every element of a project. 
  • The financial security and stability of a developer is just as significant as anything else. To complete a successful project in a given timeline, you need partners with expert banking insight to secure responsible financing, investor communication, and to adhere to cost-effective budgets and deliver the project ahead of schedule. Financing terms and timeline are two very valuable factors that affect your project’s bottom line and reputation.
What Is Commercial Real Estate Development? - Archistar

Commercial real estate is a complicated art and the development team that you choose to work with is the first and most important decision that you will make. A development team without a cohesive history can be the immediate downfall of any promising project before it even breaks ground.

  • Seasoned commercial real estate experts have an existing network of professionals, lenders, and most importantly, experience in the battles that a true professional learns along the way. Experience is everything and that valuable knowledge will steward a project to maximize the positive outcomes and navigate around the pitfalls. 
  • In many instances, a project owner may believe they have the right team to complete a project, but a secondary opinion to evaluate a project is highly recommended to prevent any challenges. Don’t hesitate to get second, third, and fourth opinions, especially if those opinions are free.
  • Having a team that knows the history and present market of an asset territory is vital in negotiations and execution. Don’t assume a team in one market can execute in another.

The right commercial development partner can be the difference between bankruptcy or the peaceful delivery of a profitable project.