Real estate development involves renovating existing buildings or purchasing raw land and building new buildings on them. It may include land divisions for multiple structures, such as those found in housing developments. Developers may create residential or commercial structures. The development process is lengthy and needs to overcome many challenges.
Choosing the Wrong Location
The common phrase, “location, location, location” applies to more than businesses. Angelo Ingrassia developer will tell you the same is true in real estate development. The location of development needs to fit the needs of the target market and local demographics. It also needs to have zoning and key features that match the developer’s needs.
Improper sites can have challenges with accessibility and competition. These individuals may also face environmental risks and restrictions. They may encounter steep fees to change zoning, get permits and otherwise complete the project. These professionals could also have conflicting design and improvement plans that don’t work with the property. Overcoming these challenges requires significant research.
Construction and Site Risks
As property owners, developers are responsible for things that happen on their land. They need to adhere to OSHA standards of safety, but having a safety plan isn’t always enough. Individuals who work on or visit the property can slip, fall, trip, get hit or receive injuries due to vibration, electricity, materials handling and scaffolding. They may also receive burns.
Developers may also experience dangers that are out of their control, such as inclement weather, groundwater depth, buried debris and rocky ground or slides. Unfortunately, these injuries can also delay specific steps in the jobs.
To prevent some of these risks, developers get extensive surveys and conduct significant research on the surrounding area. They also develop in-depth safety plans and have backup plans for delays.
Local Opposition
Real estate development requires the approval of the community. In many cases, if the community sees profit in the project, they will approve it. However, neighborhood residents can impact the approval process. In fact, they can stop the development altogether if they collaboratively put pressure on elected officials.
Neighborhood residents may have concerns about traffic, noise and other conflicts. They may also want economic and environmental preservation. Effective outreach and communication with these individuals can subvert these challenges because as they become more educated on the development project, they will begin to see its advantages.
Post-Construction Management
While many developers pursue building and remodeling projects to sell once the process is over, others prefer to keep these assets and lease them to tenants. However, the leasing process has its own challenges. The owner needs to find reputable, honest and honorable tenants, and long-term tenants are the goal. In addition, they need to manage and maintain the property and address their tenants’ complaints and concerns.
In these cases, most developers work with property managers who handle tenant issues, marketing, rent collection and other tasks. This opens developers’ schedules to pursue their next project.
Real estate developers have complicated jobs. They have to keep watch over every part of their project to prevent cost overruns, schedule delays and other challenges. However, if they spend time preparing for these challenges, they can prevent or reduce the impact of these problems during their development process.
