Professional Real Estate Development : The ULI Guide to the Business

by Unknown

• ISBN13: 9780874208948
• ISBN10: 0874208947
• Edition: 2nd
• Format: Trade Book
• Copyright: 2003-01-01
• Publisher: Urban Land Institute

Summary

This basic primer covers the nuts and bolts of developing multifamily, office, retail, and industrial projects. Small-scale examples are ideal for anyone new to real estate development.

Author Biography

Richard B. Peiser was appointed the first Michael D. Spear Professor of real estate development in the department of urban planning and design at Harvard University.

Table of Contents

Introduction	2	(24)
What Is a Developer?	3	(1)
The Book's Approach and Objectives	4	(1)
Requirements for Success	5	(1)
Paths for Entering the Development Field	6	(1)
Finding the First Deal	7	(5)
A Use Looking for a Site	7	(1)
A Site Looking for a Use	7	(4)
Improving the Chances of Successful Development	11	(1)
Managing the Development Process	12	(13)
Real Estate Cycles	13	(1)
Getting Started	14	(4)
Stages of Development	18	(7)
Conclusion	25	(1)
Organizing for Development	26	(32)
The Firm's Organization and Management	27	(7)
Forming Partnerships	27	(2)
Organizational Life Cycles	29	(1)
Organizational Structure	30	(1)
Compensation	30	(3)
Strategic Planning	33	(1)
Choosing Consultants and Contractors	34	(3)
Locating a Consultant	35	(1)
Selecting a Consultant	35	(1)
Rates	36	(1)
Working with Consultants	37	(1)
The Design/Construction Team	37	(9)
Architects	37	(1)
Landscape Architects	38	(2)
Land Planners	40	(1)
Engineers	40	(1)
Soils Engineers	41	(1)
Environmental Consultants	41	(1)
Surveyors	42	(1)
Parking Consultants	43	(1)
Asbestos Abatement Professionals	43	(1)
Construction Contractors	44	(2)
Real Estate Service Firms	46	(6)
Market Consultants	46	(1)
Appraisers	46	(1)
Attorneys	47	(1)
Title Companies	47	(1)
Surety Companies	48	(1)
Brokers/Leasing Agents	49	(1)
Public Relations/Advertising Agencies	50	(1)
Property Management	50	(2)
Lenders	52	(5)
Working with Lenders	52	(1)
Sources of Financing for Real Estate Projects	53	(4)
Conclusion	57	(1)
Land Development	58	(70)
Overview	59	(3)
Subdividing Land	59	(2)
Land Development versus Building Development	61	(1)
Project Feasibility	62	(32)
Market Analysis before Site Selection	62	(2)
Site Selection and Acquisition	64	(5)
Market Analysis after Site Selection	69	(2)
Regulatory Process	71	(10)
Financial Feasibility Analysis	81	(13)
Design and Site Planning	94	(12)
Evolution of Subdivision Design	94	(2)
Sensitivity to Design Issues	96	(1)
Cluster Development, New Urbanist Plans, and PUDs	97	(1)
Site Planning Process	97	(1)
Site Information	98	(2)
Streets and Street Hierarchy	100	(1)
Site Engineering	101	(2)
Platting	103	(1)
Higher Densities	104	(2)
Financing	106	(5)
Obtaining Financing	107	(2)
Joint Ventures	109	(2)
Construction	111	(1)
Marketing	112	(4)
Marketing to Homebuilders	113	(2)
Marketing Larger Parcels	115	(1)
Direct Marketing to the Public	115	(1)
Merchandising and Advertising	116	(1)
Internet and Interstate Marketing	116	(1)
Development Maintenance after Completion	116	(4)
Protective Covenants	116	(3)
Community and Condominium Associations	119	(1)
General Advice	120	(1)
Conclusion	121	(7)
Multifamily Residential Development	128	(84)
Overview	129	(3)
History	129	(1)
Product Types	130	(2)
Getting Started	132	(1)
Project Feasibility	132	(39)
Market Analysis	133	(7)
Site Selection	140	(7)
Financial Feasibility Analysis	147	(24)
Design	171	(11)
Unit Mix	171	(1)
Site Design	172	(4)
Exterior Design	176	(1)
Interior Design	177	(1)
Design Issues	178	(1)
Design Process	179	(3)
Financing	182	(13)
Construction Loans	182	(2)
Permanent Financing	184	(3)
Financing Issues	187	(6)
Government Programs and Working with Nonprofit Organizations	193	(2)
Construction	195	(2)
Managing and Scheduling the Job	195	(1)
Inspections	196	(1)
Subcontractors and Draws	196	(1)
Insurance	196	(1)
Marketing	197	(5)
Developing a Market Strategy	197	(1)
Public Relations	198	(1)
Advertising	199	(3)
Operations and Management	202	(6)
Hiring Staff	203	(1)
Turnover	203	(5)
Selling the Property	208	(1)
Conclusion	208	(4)
Office Development	212	(42)
Overview	213	(4)
Categorizing Office Development	213	(3)
Trends in Office Building Development	216	(1)
Project Feasibility	217	(8)
Market Analysis	217	(5)
Site Selection	222	(1)
Regulatory Issues	223	(2)
Financial Feasibility	225	(1)
Design and Construction	225	(13)
General Principles	225	(2)
Site Planning	227	(1)
Exterior Design	228	(2)
Interior Design	230	(6)
Tenant Leasehold Improvements	236	(2)
Pitfalls and Suggestions	238	(1)
Financing	238	(4)
Construction Loans	239	(1)
Permanent Loans	239	(1)
Lease Requirements	240	(1)
Mortgage Options	241	(1)
Standby and Forward Commitments	241	(1)
Equity	241	(1)
Marketing and Leasing	242	(8)
Marketing Strategy	242	(1)
Brokers	243	(1)
Types of Leases	244	(1)
Lease Rates and Terms	245	(5)
Operations and Management	250	(1)
Budgeting and Accounting	250	(1)
Keeping Tenants Satisfied	250	(1)
Selling the Completed Project	251	(1)
Conclusion	251	(3)
Industrial Development	254	(46)
Overview	255	(1)
Product Types	256	(4)
Building Categories	256	(3)
Categories of Business Parks	259	(1)
Rehabilitation and Adaptive Use	259	(1)
Project Feasibility	260	(11)
Market Analysis before Site Selection	260	(4)
Site Selection	264	(3)
Market Analysis after Site Selection	267	(2)
Regulatory Issues	269	(2)
Financial Feasibility	271	(1)
Design and Construction	272	(8)
Site Design	272	(3)
Building Design and Construction	275	(4)
General Advice	279	(1)
Financing	280	(6)
Construction and Permanent Loans	280	(1)
Equity Structure	281	(1)
Dealing with Institutional Investors	282	(1)
Joint Venture Deal Points	282	(1)
Negotiating Risk	283	(3)
Marketing	286	(3)
Marketing Strategy	287	(1)
Marketing Materials	287	(1)
Brokers	288	(1)
Leasing	288	(1)
Property Management	289	(8)
Stage 1: Development	289	(7)
Stage 2: Lease-Up	296	(1)
Stage 3: Stabilized Operations	296	(1)
Selling the Project	297	(1)
Conclusion	297	(3)
Retail Development	300	(56)
Overview	301	(4)
Standard Shopping Center Categories	302	(2)
Specialty Centers	304	(1)
Project Feasibility	305	(13)
Market Analysis	305	(7)
Site Selection	312	(4)
Regulatory Issues	316	(2)
Financial Feasibility	318	(1)
Design and Construction	318	(18)
Site Plan and Building Configuration	323	(3)
Parking, Circulation, and Access	326	(1)
Site Engineering and Landscaping	327	(2)
Outparcel Development	329	(1)
Building Structure and Shell	330	(3)
Interior Design	333	(1)
Construction	334	(2)
Financing	336	(1)
Marketing	337	(9)
Leasing	337	(4)
The Lease	341	(3)
Organizing the Leasing Program	344	(1)
Postconstruction Marketing and Promotion	344	(2)
Operations and Management	346	(7)
Management Approaches	346	(1)
Security	346	(1)
Financial Records and Control	347	(5)
Maintenance and Housekeeping	352	(1)
Conclusion	353	(3)
Trends and Issues	356	(17)
Looking at the Past and to the Future	357	(1)
Changing Market Factors	357	(4)
Industry Restructuring	358	(1)
The Demise of Small Developers?	358	(1)
Financing	359	(1)
Paying for Infrastructure	360	(1)
The Erosion of Development Rights	360	(1)
The Technological Revolution	361	(1)
Trends	361	(2)
New Demographics	361	(1)
Changing Lifestyles	362	(1)
Cities versus Suburbs	363	(1)
Development Issues	363	(4)
Smart Growth	363	(1)
Place Making	364	(1)
Environmental Concerns	365	(1)
The Need for Open Space	366	(1)
Transportation and Congestion	366	(1)
Social Responsibility	367	(3)
The Developer's Public Image	367	(1)
Differing Social Objectives	368	(1)
Gaining Community Support	369	(1)
Personal Integrity	370	(1)
Conclusion	370	(3)
Appendices	373	(15)
Index	388