Are you involved in a real estate project, but confused about the steps? Large commercial real estate developing can be a long, tiring process. However, by breaking down the major parts of the process it can be much easier to understand.
If you need an overview of the steps, then have no fear. Below, we give our guide to the main stages of real estate development.
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What Is Commercial Real Estate Development?
Commercial real estate development refers to the development and construction of properties that will be for commercial use. This often excludes properties that are developed for living, such as housing and apartment blocks. Instead, it is focused on office space, retail units and warehousing.
Although there are many different phases and possibilities with commercial real estate development, it can generally be categorised by four areas. Each of these is integral to the process.
These areas are not strict in how they are implemented. It can be quite common for them to overlap, or start in advance of another.
The first initial stage is the initiation of the project. This is where the idea for the project will begin to germinate. The person starting the project will need to form a project description which they can take to investors, to gain the early capital they need.
To gain this investment, a rough calculation will be made by the developer. They can then also begin searching for possible locations and land assurance. There are many companies around the world, such as Willing Property, who are specialists in all phases of the project.
Project conception can is the deeper enhancement and understanding of the first section. Stage one will have been the rough planning for a location, investment and the idea. This stage will flesh out the details.
The project will undergo multiple analysis methods to check it is profitable. Market analysis, feasibility, competition, risk and cost are all considered. If all of this is suitable, it will move into the next phase.
This is where the actual building project begins. A developer will assign a project manager, who will oversee the construction. Their job will be to check the planning and coordinate the building efforts, along with the budget and subcontractors.
Marketing is one of the final stages in the process, though starting it much earlier can minimize the risk. The job of the marketing firm will be to let people known about the project, in a bid to attract rentals or sales. The earlier this is accomplished, the less risk there is of the project failing.
If you are undertaking real estate development projects without the necessary experience, then consider getting professional advice. There are numerous companies dedicated to getting projects off the ground who will have the expertise you need.
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