Investors
Did the anticipated development profit materialize?
This is a concern shared by the investor and the developer.
The antidote to disappointment is prudent project selection.
The Entitlement, or right to build, is only a beginning,
other considerations that enhance or detract from a development’s
viability are clearly more important. Considerations of
project competition, demographics, location advantages,
product mix, demand growth and limitations, project design
and layout, and micro and macroeconomics, guide the decision
to move forward. Only experience that knows of the need
to constantly consider the salient factors of success can
ensure a solid return on equity. Other factors requiring
constant monitoring include; economic trends, local employment,
interest rates, and construction cost fluctuations.
Marketing and leasing experience, however, is
the grand master when project design is being considered.
A project’s ability to sell or lease and stay leased
depends on sound design. For example, parking lot traffic
flow, parking availability and layout, and store depth
and height are critical elements for shopping centers.
A novice architect, or developer can unwittingly destroy
the viability of an otherwise good location. Of course
design considerations are paramount with regard to
residential projects.
With my highly refined construction and architectural
contracts I am able to eliminate incompetent or unscrupulous
consultants and contractors. Consequently, the consultants
I select serve our developments with excellence and
integrity.
Additionally, no one cares to the degree an owner
cares. Therefore, I personally monitor construction
and implement marketing plans. There is no substitute
for aggressive thorough marketing campaigns. Dedicated
web sites, direct mail, cable TV ads, and broker networking
go beyond the typical effort.
Finally, timely and complete project reporting
is a key requirement in building and maintaining trust
between partners. All projects face their challenges
requiring prudent decisions and action. Only the well
informed partner can effectively participate in solving
a projects needs.
