Here’s one of the hard truths about real estate that very few people have discussed over the last...
The Real Estate Development Process
Business owners are experts in their craft and problem solvers by nature - manufacturers specialize in industrial production. Doctors focus on treating patients. Auto mechanics enjoy fixing cars. Many don't have the expertise or the bandwidth to develop a new facility themselves.
Here's how development normally works for a business that plans to owner-occupy their space:
Project consultants work in silos of limited expertise and deliver services according to their priorities. Each trade serves its distinct role - contractors focus on building, architects on drawing, civil engineers on site design, and the list goes on... but there isn't an expert with knowledge of every function.
And this misaligns incentives - business owners are left trying to figure out how to develop the property themselves while also running a business. The real estate development process has for too long left small business owners behind.
So, we're flipping the script on that and turning the traditional owner-occupied small business development model upside down.
Marsh & Partners instead takes a proactive approach to development by managing every aspect of project execution and delivery. We're developers ourselves - so we have the scale and supporting functions available to deliver a ground-up project from start to finish. That means business owners aren't left trying to learn and manage a process they may only do once in their lifetime. And they can instead focus on their value-creating activities and leading their businesses.
Here's how Marsh & Partners can help:
Site selection & Land Acquisition: Preliminary site planning, project feasibility analysis, real estate due diligence, financing facilitation, and land contract structuring/negotiation
Pre-Development & Land Entitlement: Land planning coordination, design management, site plan & construction drawing approval, budget refinement & project management
Development & Construction: Construction management, budget & schedule refinement, and quality assurance
Post Construction/Closeout: Certificate of occupancy (CO) & project closeout services, management plan, & marketing and leasing services (if needed)
Aligned Business and Real Estate Strategy
Traditionally, small business owners make real estate decisions by default, through the course of their daily business.
It's not willful negligence on the part of the owner, but rather a symptom of leading a business in today's operating environment - owners have too much on their plate. They're often times playing the role of visionary, manager, CFO/accountant, salesperson, and chief marketer. It's already too much to handle for a single individual, and when you add in the complexities associated with real estate development, it's no wonder most owners default to the status quo.
But unintentional real estate decisions have major implications for business growth and productivity. A real estate consultant may be necessary to help businesses capture the synergies that come from properly aligned real estate.
So by helping owners shift from the mindset of treating their real estate and business as two standalone functions, Marsh & Partners is creating better owner-occupied results. Real estate development instead becomes an opportunity to align business operations, future company growth, financing, tax, and wealth-building implications.
And we're taking the burden of having to manage the process off the shoulders of owners. Project consultants (engineers, architects, surveyors, etc.) operate independently and rely on the project owner for constant oversight. A real estate consultant manages those disparate functions ensuring that the owner's intent is captured throughout the development process.
Marsh & Partners' services as a solution to businesses' real estate strategy needs:
More Efficient Space: Deliberate program analysis (interior floorplan and exterior site plan), design management, and space planning to better enable operations and optimize the facility (facility optimization)
Cost & Time Savings: Leverage relationships with engineers and project consultants for faster and more cost-effective service
Risk Management: Properly sequence due diligence and development milestones to avoid late-stage project setbacks and spending money out of turn
Focus on Your Business: Business owners avoid learning and managing the development process and can instead focus on their operations
How a Real Estate Development Consulting Project Might Work
Real estate development is becoming more complex, and municipalities continue to add friction to the land entitlement and project permitting process. Marsh & Partners enables business owners to focus on what they do best - managing, leading, and growing their companies.
Business owners don't have to manage all the moving parts and consultants related to a project - Marsh & Partners would be the owner's primary point of contact throughout the development process.
Here's how the real estate consulting process normally kicks off:
- An initial engagement to discuss the development project, client objectives, business & real estate strategy, and services
- Executed development proposal for retention of Marsh & Partners' services
- Real estate strategy refinement and a project timeline and action plan developed
- Project kick-off and weekly owner coordination meetings
- Marsh & Partners will manage and sequence all real estate due diligence tasks, timelines, budgets, projects consultants, municipal permitting and approval requirements, construction, and occupancy - ensuring the owner's vision is clearly articulated and delivered on throughout
- Projects are managed using a collaborative real estate development project management platform to keep the business owner updated on project timelines and milestones
When it comes to business planning and strategy, one of the critical questions is how long the project will take.
Every municipality is different, and depending on the size and scope of the development project you're proposing, the land entitlement and permitting process can vary greatly in complexity and time required.
It's wise to plan for at least 24-36 months to allow adequate time for everything from site selection through project closeout. A real estate consultant can help you contemplate and structure your existing real estate situation to best align with a development project's timeline requirements.
Development Resources For Business Owners
You can also check out a couple of videos and articles below that are geared specifically for business owners contemplating development. 👇👇👇
To build a commercial real estate property or engage in most land development activities, you need...
Real estate is a localized asset. Its value is influenced by things like tax rates, the local...
