When entering the commercial real estate development field, you may need to have a wide breadth of knowledge, a vision, access to funding, and networking skills. You may also need good communication and interpersonal skills to put together a team of knowledgeable individuals to assist you in your endeavor.
You may become interested in real estate development after working in a related field, or you may transition into the role being passed down within the family, as with Stefan Soloviev. Soloviev, a successful cattle and agricultural business executive, transitioned into the field after taking over his elderly father’s high-profile development firm.
Real estate as a whole may involve purchasing, developing, managing, selling, and investing operations. Commercial property development may involve understanding the current market and its trajectory. You may want to develop a piece of land based on the projected needs of the community, considering the existing infrastructure. Perhaps additional office space would serve the community better than housing opportunities, or vice versa.
When you think about it, the real estate business involves unforeseen complexities. You may want to look into past environmental disasters, their types, severities, locations, and the number of occurrences. You may need to finance your operations through commercial loans. Along the way, you may be met with competition, opposition, and other hurdles to your development plans. Adverse weather may affect your timeline and plans as well. You may need great patience to fulfill your vision.
Construction considerations may include deciding whether to demolish existing buildings and build new or modify existing structures. If building residential property, you may want to consider the demographics of your prospective residents, including their age range and average income. Older residents may prefer having amenities close to their residence, while schooling and job opportunities may be more relevant considerations for younger residents. Affordable housing may be an appealing factor for your prospective residents as well.
Property management involves time-consuming tasks such as performing maintenance, inspections, landscaping, plumbing, cleaning, tenant relations, rent collection, evictions, marketing, and more. Looking into the future, once you have finished your development project, you may choose to sell the property or hire a property manager to oversee its operations as you move on to another development project.
As a property developer, you may add tangible and intangible value for years to come. When handled properly, there may be an increase in property value, as you may have improved the standard of living in the neighborhood and surrounding communities.
