Over the years, the property market has experienced massive interest and investment from small to medium professional property developers. People are now waking up to the reality that land is an asset, one that appreciates over time. This fact makes land an asset that has one of the highest Return on Investment (ROI).Real estate developers consist of people and companies that control or orchestrates all the activities that involve converting ideas on paper into real assets (property). Real estate developers do quite several things, some of which include: buying lands, financing real estate deals, imagine, create and monitor the development process from the beginning to the end. This time I will explain to you what working with property developers entails.
How Do You Work with Property Developers?
As mentioned earlier, property developers, also known as real estate developers, are tasked with converting paper ideas to real property. During the development process, lots of professionals are involved. A few of them include Civil engineers, Land and Quantity Surveyors, Architects, Attorneys. Some of these professionals’ presence reveals and affirms the lots of work done during the development process.
What Is Commercial Development?
Commercial property developers are also known as Real estate commercial developers. Commercial property development involves purchasing and leasing commercial investments such as retail centres, industrial facilities, etc. Moreover Commercial property development is a broad sector in the real estate industry that encompasses several avenues and methods for making money by investors. Commercial property development involves three stages.
1. Site Selection and Evaluation
Site selection and evaluation is the most paramount decision you would ever make as a property developer. The success or failure majorly depends on the approach you take to site selection and evaluation.It is possible to change several things during a commercial property development process, but you cannot change one location. Most greenhorn property developers make this mistake. They buy up cheap properties in non-marketable locations at lower prices and think that they would have larger profits once they sell.
2. Property Flipping and Development
There is an area of property flipping and commercial property development, commonly called merchant development. A merchant builder is a commercial property developer who specialises in building buildings for near-term resale.It is so prevalent amongst merchant developers to sell immediately within as little as a year after opening a building. This helps them eliminate their risk of holding the asset long term, and they may realise an immediate profit.
3. Creating Holding strategy
Proper holding strategy helps you make the best possible ROI on the well-selected location. Often, commercial property developers tend to create their holding strategy based on the length of the lease term they could obtain. In the real estate world, the longer the lease term gets, the more patient you are likely to be before you ever think of selling.
What do commercial property developers want from architects?
Property developers, over the years, have not enjoyed a good relationship with the architecture family. There are few things every property developer watches out for before agreeing to partner with them. These are:
Professionalism
Everyone property developer wants to work with architects that have experience in the real estate industry. Property developers tend to have a smooth working relationship with architects who know their onions. Hence, they watch out for professionalism.
Team-spirit
The ability to work as a team of people to achieve a common goal is something real estate developers (property and commercial) developers.
The
commercial development process needs all hands to be on deck for it to be successful
Experience
Having practical and hands-on experience as an architect gives you an edge while working with property developers in the real estate industry.
Conclusion
At Muse Architects, we’re committed to producing the highest quality, industry-leading designs for new build and refurbishment developments in the residential and commercial sectors.Whether you are interested in unlocking the potential value of the land before the acquisition, build an iconic new luxury apartment/mixed-use development, or provide much needed new housing as a multi-unit residential scheme, our expert architects will maximise the gross development value of any site to ensure the best possible return on investment are deliverable, all while mitigating and managing the process.
