Deciding to undertake a commercial real estate development venture in Denver is an exciting prospect. It’s hard not to imagine the perfect structure going up on the ideal lot; but it’s critical to understand how commercial real estate development works.
Location, Location, Location
The first step in development is property selection. Work with a professional development services company to determine the appropriate usage and long-term feasibility of various types of projects, such as sub-divisions or retail space, on several different parcels. Rely on their expertise to determine how much prep work is needed at each of the properties, and how the prep work changes in relation to whatever’s chosen for the final project, whether that’s an office building or a pad site. Solidify your target market and your plans to fill the space.
Getting Your Project Off the Ground
Financing can be arranged through loans or by raising funds from investors; some developers pursue both. From there, developers initiate the entitlement process. It can be time consuming and require multiple meetings with local officials and zoning boards; commercial real estate development may also involve community engagement and outreach efforts. Sometimes, it’s necessary to go back to the drawing board in response to concerns about things like drainage or traffic.
Having an experienced team of development and construction managers on-board can ensure the process runs smoothly. Once arrangements are finalized with the local municipality, whether that’s Denver or someplace else, real progress toward breaking ground can begin.
The construction phase can be the most expensive and most time-consuming part of the development process. Once the approvals are in place, it’s time to hire an architect for the project, and then hire contractors once those plans are approved. Regular and frequent communication is an important element; expect to stay on top of the work the contractors are doing, and expect that the municipality will want to be in the loop, too. A professional construction management team that’s experienced in commercial real estate development is invaluable. They can anticipate obstacles and problem-solve effectively.
As the project moves closer to completion, it’s time for municipal building inspections and similar assessments. Finally, it’s time to ramp up operations. By arranging with a realtor to secure tenants for the building, and then a property management company to ensure operations run smoothly, you’ll be ready to reinvest your revenues into a new commercial real estate development.
Contact a Commercial Real Estate Development Firm in Denver Today!
contact enterPoint Integrated Solutions today! for an array of commercial real estate development services in Denver and beyond. Our knowledge and experience take projects from figment to finished product.