DEVELOPMENT
LAND DEVELOPMENT IS THE ULTIMATE
IN COMMERCIAL REAL ESTATE
Whether you are a seasoned developer with multiple projects currently underway or just starting to explore what it takes to develop your dream project, MARQUIS can assist with location, site selection and land acquisition. See below for more details
SITE ACQUISITION & PERMITTING
When determining site selection, it’s critical to determine exactly what is going to be done with the land. This means considering the “highest and best use” and the feasibility of the project.
Zoning, surveys and environmental studies as well as feasibility, traffic and geotechnical soil studies are part of the initial permitting and entitlement process.
To ensure the proposed development will be permitted requires working directly with local, county and state government. Ultimately, they will determine what can be build and the extent or limitations of the proposed development
FINANCE & PLANNING
With that risk in mind, banks consider land development a speculative investment and will limit their exposure to 60% of its value or purchase price. Outside investors, capital raises, or personal wealth are all alternative ways to fund the acquisition.
Planning is the determining stage for the highest and best use of the land. Engaging architects, engineers and consultants that can understand the vision in mind for the land and transform it into blueprints, surveys and schematics.
A complete financial cost analysis which includes a construction budget and development cost breakdown will provide a detailed picture of the scale and commitment of any proposed project.
CONSTRUCTION & DEVELOPMENT
Preconstruction meetings with the architect, general contractor and all subcontractors establishes timeframes and commitments for each responsible party.
Site grading, parking lot, roads and walkways are set in along with the utilities to support the development. The foundation is set and then the project goes vertical.
As the development progresses with walls, elevators, and systems, the timeline and budget must be constantly evaluated and adjusted.
COMPLETION & OCCUPANCY
As the project takes form and nears completion, a preliminary ‘punch list’ identifies any remaining work. Once these are addressed, a close out punch list will note any substandard items that need correcting.
Once remaining items have been completed, a city inspection is completed to provide a Certificate of Occupancy. .
Leasing up the newly completed development in the shortest amount of time to reach stabilization and provide cash flow for the expenses and investors. Many office, retail, multifamily and industrial spaces are preleased based on the projected design and completion of the development.
MARKET CONDITIONS
Land planning and development is anticipated to rise at a considerable rate during the forecast period, between 2022 and 2028. In 2022, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.
- As cities continue to expand, sub-urban development is increasing as workplace dynamics evolve
- Land development is expected to increase as housing demand is set to rise as well as rents
- Distribution and logistical warehousing still continues to see demand in key cities and ports
STRATEGIC ADVANTAGES
The key to success in developing is sourcing undervalued and under-utilized real estate opportunities in emerging and high-demand locations and transforming them into high quality developments.
- Potentially lucrative return on investment
- Higher leveraged investment
- Greater stability compared to other investments