Developer

Developers are the engines of transformation. They gather resources, manage the process, and oversee a project from start to finish. They define the Project Vision and find the funding to make it a reality. Developers assemble the talent to produce the project, oversee its execution, and ensure the finished real estate’s value is realized and returned to investors. A project doesn’t happen without a developer.

Now, it's important to note that multiple people usually share the development roles for a project since the responsibilities are so broad. Development consumes time and energy across all four stages: Strategy, Assembly, Transformation, and Value Realization.

During the Strategy phase, a developer defines the Project Vision and oversees the feasibility analysis. This research often leads to a stronger plan. For example, a developer may find that the highest and best use of a waterfront property is for a residential development instead of a commercial development, as originally envisioned. Ultimately, the developer must ensure that the project to be built reflects the most suitable use in line with the project's goals.

If the developer identifies a project vision worth pursuing, the next step is to secure the property and capital required. During this Assembly phase, the developer may identify and contract for real estate, engage with investors, and create the development entity. It's like gathering the necessary ingredients before cooking a meal. Without everything in place, nothing moves forward. Once all elements are secured, the project can proceed.

Transformation is usually the longest and most complex phase, with many tasks to manage. First, developers must choose a team to complete all aspects of the transformation and oversee their work throughout the process. Developers must handle anything related to community or government compliance. Value engineering, the process of evolving the project to increase value or reduce cost, is ongoing throughout the transformation phase. And the developer must manage the project's finances, so stakeholders understand how the project is doing.

Once the transformation is complete, the developer must ensure the project achieves its financial objectives. The developer uses revenue management, the process of pricing, forecasting, and inventory control, to maximize returns. Marketing, sales, leasing, and property management teams are engaged to support this effort. The last step in the Value Realization phase may also include recapitalizing the property for holding long-term. As you can see, developers play a critical role in the real estate development and transformation process. They are responsible for making sure that the project is executed successfully, from start to finish.