Each year, more than half a million real-estate development projects are completed in the United States. As one of the fastest-growing industries in the United States, real estate development has quickly become a highly desired career path for many real estate newcomers. Kyle Corkum, LStar Ventures founder and real estate developer, has seen the industry flourish in the past ten years and believes that real estate development will continue to drive the real estate market. Today, Kyle Corkum of LStar Ventures hopes to share insights into the site selection process to aid the next generation of real estate developers.
Defining the Requirements
Whether it be a set lot size or ideal neighborhood, every real estate development project has specific guidelines and requirements for the site selection process. In order to select a sufficient number of sites for consideration, a developer must know what prospective clients and their team are looking for. Some common considerations for the initial site selection process are:
– What is the total property size?
– What is the terrain, and is their proper access?
– Is there pre-existing infrastructure?
– Is the site on a hard-corner, and is there adequate visibility?
– Are there tax incentives?
– What is the status of the surrounding communities? Up and coming or established?
During this stage of the site selection process, research is key. To be able to fully consider a property, necessary research into the location’s background, zoning requirements, and grading must be completed. In addition to these questions, real estate developers must also consider:
– What earthwork is involved?
– What is the full extent of demolition that is required?
– Will there be potential site work during later stages of development?
– What is the condition of the property?
– Is the property actively for sale? Will additional negotiations be needed?
Narrowing Down the List:
Perhaps the most challenging stage of the site selection process is creating a final list of potential sites. After properly researching each site, real estate developers must consider each site’s possible costs and, therefore, must create a rough development plan and timeframe for each property. Once this stage is completed, property developers should be able to make a more educated and informed decision about which property to choose for their development project.