Contents
Preface
Acknowledgments
1 | INTRODUCTION
What Is a Developer?
The Book’s Approach and Objectives
Requirements for success
Paths for Entering the development Field
Finding the First deal
A Use Looking for a Site
A Site Looking for a Use
Improving the Chances of Successful Development
Managing the development Process
Real Estate Cycles
Getting Started
Stages of Development
Conclusion
2 | ORGANIZING FOR DEVELOPMENT
Forming Partnerships
The Firm’s Organization and Management
Organizational Life Cycles
Organizational Structure
Compensation
Strategic Planning
Choosing Consultants and Contractors
Locating a Consultant
Selecting a Consultant
Rates
Working with Consultants
The Design/Construction Team
Architects
Landscape Architects
Land Planners
Engineers
Soils Engineers
Environmental Consultants
Surveyors
Parking and Traffic Consultants
Asbestos Abatement Professionals
Construction Contractors
Real Estate Service Firms
Market Consultants
Appraisers
Attorneys
Title Companies
Surety Companies
Brokers/Leasing Agents
Public Relations and Advertising Agencies
Property Management
Lenders
Sources of Financing for Real Estate Projects
Commercial Banks
Savings and Loan Institutions
Insurance Companies
Pension Funds
Foreign Investors
Syndications and Real Estate Investment Trusts
Private Equity Investors and Joint Ventures
The Bond Market and Commercial Mortgage-Backed Securities
Credit Companies
Mezzanine Debt
Construction Lenders
Mortgage Bankers and Brokers
Permanent Lenders
Conclusion
3 | LAND DEVELOPMENT
Overview
Subdividing Land
Land Development versus Building Development
Project Feasibility
Market Analysis before Site Selection
Site Selection and Acquisition
Market Analysis after Site Selection
Regulatory Process
Financial Feasibility Analysis
Design and Site Planning
Evolution of Subdivision Design
Sensitivity to Design Issues
Conservation Development, Clusters, New Urbanism, and PUDs
Site Planning Processes
Site Information
Streets and Street Hierarchy
Site Engineering
Platting
Higher Densities
Financing
Obtaining Financing
Joint Ventures
Construction
Marketing
Marketing Budgets
Marketing to Homebuilders
Marketing Larger Parcels
Site Merchandising
Interstate and Internet Marketing
Development Maintenance after Completion
Protective Covenants
Community and Condominium Associations
Conclusion
4 | MULTIFAMILY RESIDENTIAL DEVELOPMENT
Overview
Recent History
Product Types
Getting Started
Project Feasibility
Market Analysis
Site Selection
Financial Feasibility Analysis
Design
Unit Mix
Site Design
Exterior Design
Interior Design
Design Issues
Approvals
Financing
Construction Loans
Calculating Interest for a Construction Loan
Permanent Financing
Financing Issues
Government Programs and Working with Nonprofit Organizations
Construction
Managing and Scheduling the Job
Inspections
Subcontractors and Draws
Insurance
Marketing
Developing a Marketing Strategy
The Marketing and Leasing Budget
Public Relations
Advertising
Operations and Management
Hiring Staff
Turnover
Refinancing and Selling the Property
Conclusion
Case study: West River Commons
5 | OFFICE DEVELOPMENT
Overview
Categorizing Office Development
Trends in Office Building Development
Project Feasibility
Market Analysis
Site Selection
Regulatory Issues
Financial Feasibility
Design and Construction
Site Planning
Exterior Design
Interior Design
Tenant Leasehold Improvements
Pitfalls and Suggestions
Financing
Construction Loans
Permanent Loans
Mortgage Options
Standby and Forward Commitments
Equity
Marketing and Leasing
Marketing Strategy
Brokers
Lease Rates and Terms
Operations and Management
Zombie Buildings
Energy Star and LEED
Selling the Completed Project
Conclusion
Case study: 17th and Larimer
Case study: 11000 Equity Drive
6 | INDUSTRIAL DEVELOPMENT
Product Types
Building Categories
Categories of Business Parks
Rehabilitation and Adaptive Use
Project Feasibility
Market Analysis before Site Selection
Site Selection
Market Analysis after Site Selection
Regulatory Issues
Financial Feasibility
Design and Construction
Site Design
Building Design and Construction
General Advice
Financing
Construction and Permanent Loans
Equity Structure
Dealing with Institutional Investors
Joint Venture Deal Points
Negotiating Risk
Marketing
Marketing Strategy
Marketing Materials
Brokers
Leasing
Property Management
Stage 1: Development
Stage 2: Lease-Up
Stage 3: Stabilized Operations
Selling the Project
Conclusion
Case Study: Ameriplex
7 | RETAIL DEVELOPMENT
The Evolution of Shopping Centers
From Downtowns to Big-Box Retailing
Commodity Retailing
Regional Malls
Lifestyle Centers
Classifying Shopping Centers: Commodity versus Specialty Retail
The New Shopping Paradigms
Development Opportunities
Commodity Retailing
Specialty Retailing
Hybrid Shopping Centers
Crossover Tenants
The Impact of E-Commerce
Predevelopment Analysis
Market Filter—Trade Area and Sales Potential Analysis
Physical Filter—Site Analysis
Regulatory Filter—Public Approvals and Handling Opposition
Financial Feasibility Filter
Design and Construction
Shopping Center Configuration
Access, Parking, and Circulation
Ingress and Egress
Site Engineering
Building Structure and Shell
Tenant Spaces
Construction
Tenant Finishes
Financing
General Financing Considerations
Construction Financing
Permanent Financing
Public Financing
Land Sales
Merchandising and Leasing
Shopping Center Leasing
The Shopping Center Lease
Marketing
Preopening Marketing
Ongoing Marketing
Management and Operation
Financial Records and Control
Conclusion
Case Study: Bayshore Town Center
8 | TRENDS AND ISSUES
Changing Market Factors
Industry Restructuring in the 1990s
The Crisis of 2008–2009
The Demise of Small Developers?
Financing
Paying for Infrastructure
Regulatory Change and the Erosion of Development Rights
The Technological Revolution
Trends
New Demographics
Changing Lifestyles
Cities versus Suburbs
Development Issues
Smart Growth
Place Making
Environmental Concerns
The Need for Open Space
Transportation and Congestion
Social Responsibility
The Developer’s Public Image
Gaining Community Support
Personal Integrity
Conclusion
Index