FAQ

A: The owner and development consultant work together to become the “developer” of the real estate project. The owner is responsible for decision-making, while the development consultant is responsible for managing the development process, coordinating the development team’s work, serving as the central point for communication and decision-making, and providing coaching and advice to the owner. The development consultant also takes on specific tasks independently or in conjunction with other members of the development team, which may include preparing the development program and concept plan(s), conducting market/need/demand analysis, identifying and evaluating potential properties, and assisting with project design, budgeting, and applications for government approvals.

The development consultant’s tasks include overseeing the preparation of the development program and concept plan(s), undertaking market/need/demand analysis, identifying, evaluating, and assisting with negotiating property acquisition, assisting with project design, preparing capital and operating cost budgets, assisting with zoning and other development approvals, preparing applications for government assistance, preparing marketing materials and coordinating marketing/application/pre-leasing/presales process, preparing financing applications and negotiating terms, coordinating an acceptable procurement method and construction contract, accounting for all project costs, and assisting with organizing property management.

A: Many non-profit and for-profit organizations and companies engage professional real estate development consultants to develop multi-unit residential, health care, institutional, and commercial projects. These include healthcare agencies and authorities, non-profit housing organizations and authorities, churches and other faithbased organizations, hospitals and personal care/nursing homes, colleges and universities, community service organizations, government departments/agencies, and private real estate investors/trusts.

For many organizations and companies, developing real estate is not a frequent activity. Consequently, many lack the internal capacity – including available time, skills, and knowledge – to develop real estate in an efficient manner. Engaging the services of a professional development consultant is a cost-effective method for many organizations and companies to acquire the knowledge and skills necessary to develop real estate without the need to hire new staff or re-direct existing resources.

A: (NO/YES) Developing real estate is a complex process that can take years to complete. It requires large sums of money and the work of many professionals. In recent years, changes in financing procedures, shifting market needs and demands, increasingly more complicated government programs and development regulations, and evolving design requirements have all added to the complexity of the real estate development process. An experienced professional development consultant can offer owners the comfort of having someone “on board” who understands the complexities of
real estate development and has navigated through the process many times before.

A: First, the development consultant helps the owner assemble the development team, identify the project’s goals and objectives, secure/define the property to be developed, and develop an initial building concept. The development consultant also assists the owner in assessing its own financial and operational capacity to undertake the development of the project. During Step Two, the development consultant works with the owner to assess the project’s feasibility. This step typically involves helping the owner with tasks such as market/need/demand analysis, preliminary designs, preliminary capital and operating budgets, financing applications and negotiations, and zoning/development approvals. The goal of the feasibility stage is to help the owner determine whether it should proceed to the next stage of development. Once feasibility has been determined, Step Three is preconstruction. Deciding to go to pre-construction
is normally a major step for an owner as it usually involves committing significant resources to the project. The development consultant works with the owner and the design team to finalize the project’s design and develop a more detailed construction budget and schedule. Step Three also typically involves securing construction financing and all necessary approvals from government agencies.

The Fourth Step in the real estate development process is the construction of the project. The development consultant participates in construction meetings, helps the owner resolve any construction issues that arise, and accounts for all project costs. The consultant may also need to initiate and coordinate the marketing/pre-leasing/presales process.

The Final Step in the development process is helping the owner with sales, property management, move-ins, construction clean-up, and finalizing the project’s costs. Depending on the situation, the development consultant may also need to help the owner initiate staffing or sign a property management contract. Because real estate development is a cumulative process, with each step forming a foundation for the next, it is important for owners to hire a development consultant as early as possible. Decisions made early in the development process can have a major impact later on. A qualified development consultant is aware of how early decisions can affect the later stages of the process.