Table of Contents

Title Page 2
Copyright 3
About the Urban Land Institute 4
About the Authors 5
Authors 7
Contents 9
Preface 15
Acknowledgments 17
1 | INTRODUCTION 21
What Is a Developer? 21
The Book’s Approach and Objectives 22
Requirements for success 24
Paths for Entering the development Field 26
Finding the First deal 27
A Use Looking for a Site 28
A Site Looking for a Use 29
Improving the Chances of Successful Development 33
Managing the development Process 36
Real Estate Cycles 37
Getting Started 40
Stages of Development 41
Conclusion 56
2 | ORGANIZING FOR DEVELOPMENT 61
Forming Partnerships 62
The Firm’s Organization and Management 64
Organizational Life Cycles 65
Organizational Structure 67
Compensation 68
Strategic Planning 71
Choosing Consultants and Contractors 72
Locating a Consultant 72
Selecting a Consultant 73
Rates 75
Working with Consultants 77
The Design/ Construction Team 77
 Architects 77
Landscape Architects 82
Land Planners 82
Engineers 83
Soils Engineers 86
Environmental Consultants 87
Surveyors 90
Parking and Traffic Consultants 91
Asbestos Abatement Professionals 92
Construction Contractors 93
Real Estate Service Firms 96
Market Consultants 96
Appraisers 97
Attorneys 98
Title Companies 99
Surety Companies 100
Brokers/ Leasing Agents 102
Public Relations and Advertising Agencies 104
Property Management 105
Lenders 108
Sources of Financing for Real Estate Projects 110
Commercial Banks 110
Savings and Loan Institutions 110
Insurance Companies 110
Pension Funds 111
Foreign Investors 111
Syndications and Real Estate Investment Trusts 112
Private Equity Investors and Joint Ventures 112
The Bond Market and Commercial Mortgage-Backed Securities 113
Credit Companies 113
Mezzanine Debt 113
Construction Lenders 113
Mortgage Bankers and Brokers 115
Permanent Lenders 116
Conclusion 117
3 | LAND DEVELOPMENT 120
Overview 120
 Subdividing Land 120
Land Development versus Building Development 122
Project Feasibility 123
Market Analysis before Site Selection 123
Site Selection and Acquisition 126
Market Analysis after Site Selection 137
Regulatory Process 139
Financial Feasibility Analysis 151
Design and Site Planning 169
Evolution of Subdivision Design 169
Sensitivity to Design Issues 172
Conservation Development, Clusters, New Urbanism, and PUDs 173
Site Planning Processes 174
Site Information 175
Streets and Street Hierarchy 178
Site Engineering 180
Platting 187
Higher Densities 188
Financing 189
Obtaining Financing 190
Joint Ventures 194
Construction 197
Marketing 200
Marketing Budgets 201
Marketing to Homebuilders 202
Marketing Larger Parcels 204
Site Merchandising 205
Interstate and Internet Marketing 205
Development Maintenance after Completion 206
Protective Covenants 206
Community and Condominium Associations 214
Conclusion 216
4 | MULTIFAMILY RESIDENTIAL DEVELOPMENT 222
Overview 222
Recent History 223
Product Types 224
Getting Started 226
 Project Feasibility 227
Market Analysis 228
Site Selection 241
Financial Feasibility Analysis 253
Design 281
Unit Mix 284
Site Design 286
Exterior Design 289
Interior Design 290
Design Issues 292
Approvals 293
Financing 295
Construction Loans 296
Calculating Interest for a Construction Loan 297
Permanent Financing 300
Financing Issues 303
Government Programs and Working with Nonprofit Organizations 316
Construction 319
Managing and Scheduling the Job 319
Inspections 320
Subcontractors and Draws 321
Insurance 321
Marketing 322
Developing a Marketing Strategy 323
The Marketing and Leasing Budget 324
Public Relations 326
Advertising 328
Operations and Management 332
Hiring Staff 334
Turnover 335
Refinancing and Selling the Property 335
Conclusion 336
Case study: West River Commons 338
5 | OFFICE DEVELOPMENT 347
Overview 347
Categorizing Office Development 347
Trends in Office Building Development 349
 Project Feasibility 352
Market Analysis 352
Site Selection 359
Regulatory Issues 360
Financial Feasibility 362
Design and Construction 363
Site Planning 365
Exterior Design 367
Interior Design 368
Tenant Leasehold Improvements 376
Pitfalls and Suggestions 379
Financing 379
Construction Loans 380
Permanent Loans 381
Mortgage Options 382
Standby and Forward Commitments 382
Equity 383
Marketing and Leasing 385
Marketing Strategy 386
Brokers 387
Lease Rates and Terms 388
Operations and Management 389
Zombie Buildings 391
Energy Star and LEED 391
Selling the Completed Project 392
Conclusion 392
Case study: 17th and Larimer 393
Case study: 11000 Equity Drive 400
6 | INDUSTRIAL DEVELOPMENT 410
Product Types 411
Building Categories 411
Categories of Business Parks 415
Rehabilitation and Adaptive Use 416
Project Feasibility 417
Market Analysis before Site Selection 417
Site Selection 426
Market Analysis after Site Selection 428
 Regulatory Issues 429
Financial Feasibility 433
Design and Construction 434
Site Design 434
Building Design and Construction 437
General Advice 443
Financing 444
Construction and Permanent Loans 445
Equity Structure 445
Dealing with Institutional Investors 446
Joint Venture Deal Points 446
Negotiating Risk 448
Marketing 452
Marketing Strategy 452
Marketing Materials 453
Brokers 454
Leasing 454
Property Management 456
Stage 1: Development 457
Stage 2: Lease-Up 457
Stage 3: Stabilized Operations 458
Selling the Project 459
Conclusion 460
Case Study: Ameriplex 461
7 | RETAIL DEVELOPMENT 473
The Evolution of Shopping Centers 474
From Downtowns to Big-Box Retailing 474
Commodity Retailing 475
Regional Malls 476
Lifestyle Centers 477
Classifying Shopping Centers: Commodity versus Specialty Retail 478
The New Shopping Paradigms 479
Development Opportunities 484
Commodity Retailing 484
Specialty Retailing 485
Hybrid Shopping Centers 485
Crossover Tenants 486
 The Impact of E-Commerce 486
Predevelopment Analysis 487
Market Filter—Trade Area and Sales Potential Analysis 488
Physical Filter—Site Analysis 493
Regulatory Filter—Public Approvals and Handling Opposition 496
Financial Feasibility Filter 497
Design and Construction 502
Shopping Center Configuration 502
Access, Parking, and Circulation 504
Ingress and Egress 507
Site Engineering 507
Building Structure and Shell 509
Tenant Spaces 513
Construction 515
Tenant Finishes 515
Financing 516
General Financing Considerations 517
Construction Financing 517
Permanent Financing 518
Public Financing 519
Land Sales 519
Merchandising and Leasing 520
Shopping Center Leasing 521
The Shopping Center Lease 523
Marketing 527
Preopening Marketing 527
Ongoing Marketing 528
Management and Operation 528
Financial Records and Control 529
Conclusion 529
Case Study: Bayshore Town Center 530
8 | TRENDS AND ISSUES 542
Changing Market Factors 543
Industry Restructuring in the 1990s 544
The Crisis of 2008–2009 545
The Demise of Small Developers? 546
Financing 547
 Paying for Infrastructure 549
Regulatory Change and the Erosion of Development Rights 550
The Technological Revolution 551
Trends 553
New Demographics 553
Changing Lifestyles 554
Cities versus Suburbs 555
Development Issues 556
Smart Growth 556
Place Making 557
Environmental Concerns 558
The Need for Open Space 560
Transportation and Congestion 561
Social Responsibility 562
The Developer’s Public Image 563
Gaining Community Support 563
Personal Integrity 569
Conclusion 569
Index 573