Real estate development
Real estate development, or property development, is a
Developers buy land, finance real estate deals, build or have builders build projects, develop projects in joint ventures, and create, imagine, control, and orchestrate the process of development from beginning to end.[2] Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards. Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary public approval and financing, build the structures, and rent out, manage, and ultimately sell it.[1]
Sometimes property developers will only undertake part of the process. For example, some developers source a property and get the plans and permits approved before selling the property with the plans and permits to a builder at a premium price. Alternatively, a developer that is also a builder may purchase a property with the plans and permits in place so that they do not have the risk of failing to obtain planning approval and can start construction on the development immediately.
Developers work with many different counterparts along each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractors, lawyers, leasing agents, etc. In the
Organizing for development
A development team can be put together in one of several ways. At one extreme, a large company might include many services, from architecture to engineering. At the other end of the spectrum, a development company might consist of one principal and a few staff who hire or contract with other companies and professionals for each service as needed.
Assembling a team of professionals to address the environmental, economic, private, physical and political issues inherent in a complex development project is critical. A developer's success depends on the ability to coordinate and lead the completion of a series of interrelated activities efficiently and at the appropriate time.[3]
Development process requires skills of many professionals:
Land development
Purchasing unused land for a potential development is sometimes called speculative development.
Land development can pose the most risk, but can also be the most
After subdivision is complete, the developer usually markets the land to a home builder or other end user, for such uses as a
See also
- Brownfield regulation and development
- Gentrification
- Land consumption
- Property investment calculator
- Real estate bubble
- Real estate business
- Shared ranch
- Urban sprawl
References
- ^ OCLC 778267123.
- ^ New York Times, March 16, 1963, "Personality Boom is Loud for Louis Lesser"
- ^ "Article: What does a property developer do? Sept 2019". Archived from the original on 2020-08-08. Retrieved 2020-04-15.
- ^ "What is a Lady Bird Deed". April 18, 2020. Archived from the original on 2020-09-27. Retrieved 2020-04-18.