Mastering Property Development Fundamentals

Property Development Revision Sheet

1. 📌 Essentials

• Property development involves stages: land acquisition, construction, occupancy, management, sale.
• Construction durations: Office (18-48 months), Retail (6-48 months), Multifamily (6-24 months), Industrial (9-12 months). Core development team includes architect, engineer, construction manager, broker, environmental consultant, legal, and financial professionals.
• Costs are divided into soft costs, hard costs, finance costs, contingencies, developer profit, and reserves.
• Due diligence covers title review, environmental, zoning, infrastructure, and habitat considerations.
• Entitlement process requires design, environmental, traffic, fiscal reports, and public approvals.
• Development regulations include zoning, FAR, height, parking, buffers, transfer rights, impact fees.
• Highest & best use criteria: physically possible, legally permissible, financially feasible, most productive.
• Financing options: construction loans, mini-perm, permanent loans, span loans, standby commitments.
• Creating a draw schedule involves precise timing, interest projection, lien releases, and lender approval.
• Major risks: cost overruns, market downturns, permit delays, poor workmanship, tenant issues.

---