Commercial real estate development is about taking ideas on paper and turning them into real property. It’s a process that delivers a product in order to meet some form of consumer demand. But the development process is intricate.
Real estate development involves participation from a wide variety of professionals, including: architects, landscape architects, civil engineers, site planners, attorneys, environmental consultants, surveyors, title companies, lenders, architects, general contractors, and subcontractors, amongst a variety of others.
The commercial real estate development process is broadly broken out into three stages:
Site Selection and Deal Making
The initial phase of commercial real estate development involves a tremendous amount of research and analysis to determine if a proposed development is truly viable. A successful retail site must meet market demand, satisfy tenant requirements, satisfy lending conditions and regulatory requirements, and must accommodate the consumer.
Site Selection and Evaluation
Using multiple sources of information, commercial real estate developers look at all available properties within a designated trade area that meet basic site requirements. Some of the most important factors that go into determining the right site are: