Michael Snedeker serves with Shellback Industries in the Boston area, where he assists in matters regarding commercial construction and real estate. Experienced in various areas of commercial construction and real estate, Michael Snedeker understands the intricacies of managing risk in real estate development. Understanding the risks associated with real estate development is a crucial part of the process due to its lengthy, complicated nature. Projects can take years to complete, and obstacles may arise at every phase. Two factors play the biggest role in determining the risks involved in real estate development: project type and stage. The project type generally determines the amount of risk across the project's lifespan since some types involve a higher degree of risk. The overall risk tends to decrease the closer the project comes to completion. Project types fall into two broad categories: built-to-suit and speculative. Built-to-suit projects involve less risk across all stages since builders and developers identify buyers and their requirements prior to the project’s start. This also gives the project a higher chance of success. Speculative projects base construction on prevailing market trends or estimated property appeal. Since demand and market trends can shift over the course of development, the risks run higher, and the chance of success may vary.
A veteran real estate and business development professional in Boston, Michael Snedeker focuses on consulting on commercial construction and real estate matters at Shellback Industries. To better serve his clients, Michael Snedeker pays close attention to the trends driving the commercial real estate industry. For decades, retail stores have been a steadfast anchor of commercial real estate properties across the country. With the rise of the Internet and online retailers such as Amazon, however, physical retailers have had to adjust their business models to keep up. According to commercial real estate analysts, the latest twist in retail is set to drive commercial real estate trends in 2018.Over the past few years, retail stores struggling to bring in customers have adopted a philosophy that has been termed “experiential retail,” which means creating an overall experience for the shopper that goes beyond buying products. For example, yoga-product retailer Lululemon has conducted yoga classes in its stores, while grocery chains like Whole Foods have added restaurants, wine bars, and cooking classes. By adapting to the desires of both younger clients, who often value experiences over material things, and older clients, who are used to visiting physical retail locations, retailers and the larger commercial real estate industry can continue to thrive in the new economy.
