Initiation of the Project
During this phase of the development, the conditions will be
created. When it comes to real estate development, there are three basic
principles:
1. The Company Seeks Ideas and Capital Investment - The
company will seek out an investor and a project idea for a property that they
already own. This typically occurs when the company's primary business is not
related to real estate. Architects are often approached by investors who are
seeking project ideas for a site.
2. An Idea Has Been Formulated and the Company Requires a
Location and Investment Capital - In this instance, the client already has an
idea or a demand and requires a suitable location as well as investment
capital.
3. The Investor Has Capital and Needs an Idea and a Location
- In this scenario, you have an investor who wishes to invest in the real
estate market for a myriad of reasons, such as other investors or a pension
fund.
A project will begin with one of these factors - an idea,
capital or a location. During the first stage of development, the other parts
need to be found. Once they have been procured, a project description that
includes measurements and usage ideas will be produced.
After this, the next phase involves calculating the
development. During the early stages, a developer will use either a front door
of back door approach. These approaches will be discussed in other articles.
For now, we will need to focus on how the process begins.
The final part of this phase is to acquire land for the
project.
The Conception of the Project
Once the location has been found, the idea agreed upon and
the capital raised, it is time to begin the project conception. Throughout this
phase, numerous analyses will be performed to ensure that the project is both
feasible and profitable.
A feasibility study will be performed during this phase to
investigate both the positive outcomes and the negative outcomes of the project
before any money or time is invested in the project. All aspects of the project
will be analyzed, including sociological, economic, legal, planning and
technical aspects. During the feasibility study, the following analysis will be
performed:
* Competition Analysis
* Cost Analysis
* Location Analysis
* Market Analysis
* Risk Analysis
* Usage Analysis
A project is considered feasible when the analyses determine
that project will satisfy the objectives of the project within the appropriate
time constraints and financial restraints. Once the feasibility study is
completed, you should be able to determine if the project will have a positive
or negative impact on society, investors and the project's location.
Project Management Phase
During the project management phase of the project, the
developer represents the client. The design will be finalized, and the
developer will delegate tasks to an outside construction project manager.
During this phase, the overall planning, control and coordination of the
project from start to finish will be planned and carried out. Architects can be
utilized as a project management developer during this phase because of the
knowledge, education and experience they have gained throughout their careers.
Project Marketing Phase
Marketing the project can begin early in the project and
continue throughout the entire project. One way to minimize risk is to attain
an early sale or lease of the property. A marketing specialist who is hired
during the early stages of the project can offer numerous suggestions based on
their knowledge of the market.
When it comes to all the different phases of commercial real
estate development, it is important to remember that they do not need to stay
in a strictly chronological order. Typically, these phases will overlap. For
example, locating and purchasing or leasing a property can begin during the
conception phases of the project.
After the project is completed, the next phase of the
project begins - the facility management phase. This is phase is used to ensure
optimal property values.
