Developing commercial real estate. Part 3
Discover more about developing commercial real estate.
Purchase
Obviously, this stage involves buying the land at a price that will allow a commercial profit that deems the project viable. Negotiating the best possible deal may involve enticing the land seller with a compensation deal – either an exchange of finished units or participation in the project development upside.
Town planning or Development Approval Stage
The architect will be required to draw up plans that fit in with the relevant planning codes and development guidelines.
A land surveyor is required to plot out the site dimensions, levels, and important features (service pits, position of adjacent dwellings, etc.). The architect will then try to optimize the plots best qualities (commerciality, views, shape, orientation, positioning of living areas & bedrooms, easy access, viewability of commercial frontage etc.) and mitigate the effect of any shortcomings such as an anomalously shaped plot.
Then be prepared for a wait, as it may take up to 9 months before you actually get your hands on that all-important development approval permit – during which time you may have to negotiate changes with the council. Flexibility, and a clear understanding of your end goals are important in this.
Working drawing and documentation
Once we have finally received the planning permit, this is the only the local authority’s approval. It’s now time for our architect and engineer to document the working drawings. These will serve two main purposes. They will be part of a) the instructions to our contractor on what to build, and b) the documentation submitted for a building permit. The detailed drawings will also allow our quantity surveyor to prepare the bill of quantity for tendering purposes towards awarding the construction contract to a select contractor. While the architect and engineers are completing their work, we can advance things by finalizing the selection of fixtures and fittings and working with the consultants to complete the specifications.
Discover previous parts:
Develping commercial real estate. Part 1
Develping commercial real estate. Part 2