Terranado Insider

Welcome! Since you stopped by, I presume you must be curious to learn more about real estate development. Whether you are newbie wondering what real estate development is to a seasoned developer seeking to learn more about the experience of another fellow developer, you have stumbled upon an exciting community.  As a developer who has been involved in retail development, I will share with you lessons learned and walk you through a development from beginning to end through a series of articles.  I will discuss real estate development throughout a series of topics: Project Feasibility, Design, Leasing, Financing, Construction, and Operations.  For newbies out there, I highly recommend that you consider reading and purchasing this book. If you are serious about being a real estate developer, I highly recommend that you join the Urban Land Institute.

So what is real estate development? Real estate development is a multifaceted business that requires the careful orchestration of the talents of many players (architects, lenders, brokers, engineers, surveyors, designers, attorneys, and others) to create an urban landscape that tackles the challenge of converting undeveloped or under-utilized resources into homes, retail centers, office buildings, and places of recreation or commerce.  The real estate developer is an impresario who balances the interests of various constituents to create a sense of place.  While the individual assumes great risk, the rewards are endless and unparalleled.  Real estate development spans a variety of disciplines: marketing, finance, construction, design, policy, leasing, acquisitions/dispositions, and much more.  For example, development encompasses taking land and over a course of years, transforming it into a bustling retail center that meets the needs of a community.

Real estate development is an evolutionary process where no two projects are ever the same. Solving problems as they arise is the essence of the day to day ritual that I found alluring.  The spark of creativity separates successful developers and projects from others in the market.  Mitigating risk and juggling multiple tasks are not option, but requirements in the business.  A developer who involves himself in details while also seeing the project in the larger context enables a project to come to successful fruition.  A project never proceeds as planned, and a real estate develop must be able to adapt to changing conditions on a daily basis. Veterans in the industry who worked for companies such as Shorenstein or Tishman Speyer can tell you that no project ever proceeds as planned without encountering some hiccup.  If I have not yet scared you yet, continue reading.  Now that your interest has been heightened, what do I do next?

I believe that wanting to be a real estate developer is no easy task.  Some argue that one must gain experience in a specific real estate discipline (mortgage broker, leasing broker, acquisitions, etc.) while others argue that you can jump right into real estate development by locating your first deal.  If you are interested in a career in real estate, Selectleaders is a great website dedicated to the real estate job market.  From experience, I highly recommend that you spend a few years working with a small real estate developer where you can get involved in all facets of the business.  Locating smaller real estate developers are much more difficult, but the experience will be rewarding.  Smaller developers in the Bay Area include McNellis Partners (retail development) and SKS Investments (office, biotech, medical development).  Others argue that one should pursue a real-estate oriented program.  Some graduate programs amongst the many include:

There is no single path to enter into real estate development. Some folks have existing real estate experience in a specific discipline (i.e. leasing broker, real estate financing) and transition into development.  Some enter into the industry from a real estate program while others own a piece of property and decide to develop it.  Real estate developers enter from all different paths, but all love real estate.  No projects ever runs smoothly, and there are bound to be hiccups along the way where you question why you are even in development.

Next posting, I will begin to delve into exploring Project Feasability of how to assess whether a potential development project is feasible.  Project feasibility is one of the most important steps in the development project.  By taking your time to assess a project now (rather than later), you can save yourself time and money.  Only chase projects that make sense financially and politically.

Until next time, a few additional articles that I recommend that you peruse:

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