A Developer’s Perspective: Private Real Estate Development and Investment

Here’s a typical process for private development projects: from identifying opportunities and evaluating sites to securing financing, guiding design, and overseeing construction, developers manage every stage to maximize value and ensure a successful project from acquisition to eventual sale.

Feasibility Phase

• Before committing to a project, developers carefully assess its potential to ensure it makes financial and strategic sense:

• Market & Site Analysis: Evaluate local conditions, demographics, and demand.

• Benchmarking: Compare similar projects to set realistic expectations.

• Environmental & Geotechnical Review: Identify risks and constraints.

• Budgeting & Scheduling: Develop accurate cost estimates and timelines.

• Redevelopment Analysis: Determine opportunities for improving or repurposing existing properties.

Design Phase

• Once a project is feasible, developers work closely with design and construction teams to ensure efficiency, quality, and compliance:

• Team Selection & Contracts: Choose architects, engineers, and consultants, and negotiate agreements.

• Systems & Technology Review: Analyze structural, mechanical, and electrical systems; evaluate innovative technologies.

• Design Coordination: Ensure all design stages are integrated to meet quality, budget, and schedule goals.

• Permitting & Approvals: Navigate zoning, government approvals, and regulatory requirements.

• Sustainability & Security: Incorporate energy-efficient practices and risk management strategies.

Acquisitions & Dispositions

Developers manage the full life cycle of acquiring, managing, and ultimately selling properties:

• Deal Sourcing: Identify attractive investment opportunities that align with your goals.
  Property Evaluation: Assess physical, operational, and financial aspects of assets.
  Market Analysis: Examine supply and demand dynamics, the competitive landscape, and prevailing trends.
  Pro-Forma Projections: Model cash flows, returns, and potential upside.
  Strategic Planning: Define repositioning, redevelopment, or exit strategies.
  Due Diligence: Conduct legal, financial, and environmental reviews to mitigate risks.
  Financing: Structure debt or equity to optimize capital and transaction feasibility.
  Closing & Startup: Oversee final transactions, handoff, and operational setup.