Planning for a Better Yield on a North Gulf Coast Development Project
The beauty of an economic model’s equation is that with enough of the right information, you can pinpoint with relative accuracy the ROI of a development project. The trick involves getting information that is realistic, and refining with the figures until you are satisfied with the results.
In this article, we will cover some of the ways in which you can establish an optimized return through your existing economic model’s parameters and how some investments early on in the process will save you money in the long run.
From planning to post-occupancy is our series for developers to learn strategies that will carry them through the four stages of a commercial development project: planning, design, construction, and closeout. If you are are a developer on the North Gulf Coast, you may find the rest of our series of use as well.
Follow the shortcuts:
Researching that a project is up to regulatory standards is vital, but in this case, we mean quality control in a sort of economic sense. Is your project up to the standards of the surrounding environment, the future of the area, and the target demographic’s expectations - this is the question that you have to ask yourself before design and construction.
For the highest amount of yield and brand protection, investing in consultations with a local expert will abate misunderstandings in market research and potentially drive a higher revenue by leveraging amenities to reach a higher-yield demographic. Understanding trends and design-oriented details is an architect’s job, so consulting with an architect before purchasing a site will help refine your vision into the finest product for its environment and ultimately drive a better yield.
While much of this was covered in the last paragraph, there is another aspect that requires attention: can the project actually fit within the site? Maximum developable land, site-specific regulations, etc. - these are all matters that must be considered before purchase, and often the answers are not as straight-forward as they first appear.
These are issues that must be resolved before the final design is signed off or you will find yourself with a costly set of construction plans that are only as valuable as the paper they’re printed on.
The flip side of this point is that there may be sites which have been overlooked and are a perfect match for your vision, so long as they incorporate the right amenities and marketing. Weighing your options before purchase and understanding the different paths which your project could take, while still meeting brand requirements, is your best strategy for success.
Roadmap to development order
Assembling all of the information that you have collected into one point of reference is crucial to the momentum of your development project. As you seek your project approvals, the roadmap will include submittal dates, review dates, approval timeframes - but for now it is a visual queue for your submittal requirements, timeline, and development order acquisition dates.
Validate this roadmap as often as you apply new information, and use it to flag the warning signs of changes in jurisdictional requirements and approved dates. As far as the planning stage goes, creating a single comprehensive plan is the best way to go.