Companies that own and significantly alter property in order to increase its value
Motivations and requirements
Some want to develop land to the point that it’s ready to start construction, others will carry out all construction and proceed to lease and manage a property. Because developers take on the most risk, feasibility, underwriting and debt are incredibly important.
They want land that is zoned and entitled in a way that allows them to carry out their desired plan. They also require a robust due diligence process to identify potential risks as early as possible. This includes environmental issues, building codes and deed restrictions.
Because of the long amount of time a real estate development project takes to yield a return, market conditions have be favorable as well. Debt cycles and lending are essential when considering when to develop property.