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Michael Stortini

Real Estate Development - Partner

The 4 Phases of Real Estate Development

There are many moving pieces involved in the process, which might take years to complete. But with the appropriate technology, development teams may cut down on human labour and guarantee that a new project is finished on schedule.

Pre-development is the initial development phase when research and due diligence are prioritized. This entails purchasing property, conducting environmental analyses, and securing money for development.

The pre-development phase of every real estate development project is the lengthiest and most important step. It includes inspecting the land, organizing the buildout, and securing a construction permit.

You must assess the project's viability and financial soundness throughout this phase. You should also do a market analysis and determine your target audience.

Because it establishes the tone for all of your development efforts, this is a crucial phase. Without sufficient study before starting construction, you risk having a buildout that fails to achieve your business objectives.

Before starting building, you must complete the relevant land entitlement procedures and get any required utility and landscaping licenses. Additionally, be sure that your project complies with all applicable building codes and that all necessary construction funding has been organized and obtained.

Creating new structures, including residences, office buildings, apartment towers, and distribution centres, is a component of the real estate development process known as construction. Obtaining municipal zoning clearances at this phase also entails hiring architects to create the structures.

To make sure that everything happens as planned, a lot of preparation is needed during this period. It's crucial to research whether the land you wish to build on has limitations and whether any permissions could be needed.

Once these aspects are under control, you can gather the supplies and machinery required to construct the structure. You may complete the work at this stage with the help of a general contractor or subcontractor.

There shouldn't be any setbacks along the route since this is the most time-consuming development phase. You must have a well-thought-out strategy and be ready to track your team's development.

A value-add real estate investment enters the lease-up stage when the improvements are finished. The property manager has to start concentrating on renting out flats and making money from rent during this time.

Discovering dependable tenants who can maintain occupancy rates year after year is the key to a successful lease-up. This is crucial for brand-new rental houses still under development and doesn't yet have any local recognition.

Regional marketing managers may utilize various technologies to draw potential tenants as part of the marketing process for lease-up properties. Connecting with nearby neighbourhood companies is one of the most efficient tactics.

Building a partnership with these companies can help you gain the reputation and confidence of potential residents. Additionally, they may be permitted to put advertisements for the apartment complex on their doors or windows. During the lease-up phase, the building's exposure in the neighbourhood may increase.

The purchasing of sites, tenant leasing, and maintenance are all included in the operations phase of real estate development. Even the most experienced developers may find this phase challenging, but ensuring that your project fulfils its deadline and financial targets is crucial.

Using a tried-and-true cloud-based real estate management software like DealCloud is the ideal method to handle this difficulty. This software will keep your data safe and secure while assisting you in streamlining your operations and encouraging your team to strive for better operational excellence. Additionally, it's a terrific approach to maximize your team's performance, allowing you to focus on what matters most. Your organization will continue to function smoothly while spending less on operational costs if the appropriate tools and technology are used. The most crucial step in this approach is to create a strong business case that will serve as your decision-making framework. From there, you can practice a data management strategy that will guarantee that your most priceless assets are always secured and that your team members are constantly informed of the most recent real estate trends.

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