week 1 Flashcards
explain the 8 stages of in the process of development
- Initiation
- Investigation and analysis of viability
- Acquisition – how much it would cost to purchase the site?
- Design and costing
- Consent and Permission
- Commitment
- Implementation
- Leasing/management/disposal
explain the 8 stages of in the process of development
- Initiation
- Investigation and analysis of viability
- Acquisition – how much it would cost to purchase the site?
- Design and costing
- Consent and Permission
- Commitment
- Implementation
- Leasing/management/disposal
explain ‘initiation’ phase of development process
o vision/strategy/search: Property development begins with a thought, often driven by a need, to build something. o At this point different thoughts, limitations, goals etc are considered and a project idea emerges. eg: Deakin: if student numbers are up and the Deakin-VC sees a need to build more class rooms.
Either of two events occurs:
- A parcel of land (or site) is considered suitable for a different or more intensive use than its existing use
- There is an increased level of demand for a particular land use, which in turn leads to a search for a suitable site.
Investigation and Analysis of Viability phase:
Five (5) areas of inquiry occupy the developer throughout the project:
- Site analysis: What are the physical, environmental, and legal conditions of the site?
- Market support: What are the prices, rate of
absorption, and product mix that the market will support? - Community support and development conditions: What is the level of community support, how long will it take to get a development approved, and what requirements will the community impose as a condition of approval?
- Product and project design: What product configuration, site design, and project design fit the site, respond to the market, are consistent with community requirements, and can be constructed cost-effectively?
- Construction costs: How much will it cost to construct the project as designed, and what is the best way to shape the design so it can be constructed cost-effectively?
o The evaluation state is the most important stage of the development process explain
o General and specific market research
o Financial feasibility
o Information is costly. So, will you just ignore this stage?
o Some assumptions are to be incorporated, but not too many.
o Distinction between private and PPP projects
o Failing to pass the feasibility test today does not mean that the plan is not feasible tomorrow
o Feasibility test MUST be conducted before committing to the development.
o The viability analysis must be constantly re-evaluated and monitored throughout the process of undertaking the development.
explain design and costing
o Type of construction; pre-fab? Sustainable?
o Material choices?
o Quality level sought?
o Built area; % of land to be covered?
o Consideration of basic aspect of design starts from the preliminary stages.
o The developer may have detailed knowledge of what design is required.
o -Design depends on: type of tenant, location, purchaser, etc.
o The preliminary design stage should be relatively brief: minimizing the cost before full commitment.
o It should be acknowledged that modification of design generally cannot be made after a certain stage (full commitment). Even if possible, it would be quite costly (or need new planning approvals).
o Rawlinson’s or Cordell’s cost guide manuals
o Comparative Unit (building area, $’s per volume – best for our purposes)
o Unit-in-place (individual cost units, linear or volume)
o Quantity Survey (highly detailed specialist work)
o ‘Estimates’ are OK for the assignment. Let’s discuss this
explain consent and permission phase
o State & local planning legislation
Who drives the planning outcome?
o Consider Deakin – if re-zoned after application by the developer from industrial to higher density residential, but sat within council’s strategic plan
Local Planning Authority
o Every proposed development requires planning consent or permission.
o Outline planning permission: used early on in the development stage to establish whether or not the proposed development is likely to be approved.
o Full (detailed) application: Comprehensive application including details of the development plan
explain letting managing + disposal
Leasing/sale of the building, or, the management of the building if it’s retained.
à The above is not an exhaustive list/description as there are many variables; this list is provided as a simple guide of the key elements in each stage
o Pre-sales (very important.) Consider the ‘net’ cash flow.
o Tenancy commitments.
o Forward funding.
o Development phasing (risk control.)
- gradual release of the development stages.
- ‘fishing’ ?
o Keep in mind that our developer wants to sell the final project (to one or possibly many buyers). Often the best developments are client (occupier) led developments. What does this mean?
o The aim of the implementation stage is to ensure that the development can be completed within
A) timeframe
B) financial budget
o Completion can be delayed to some extent due to unforeseen issues (natural disaster, weather condition, material procurement, etc.)
explain commitment phase
see image on notes :)
meeting with megan friday :)
explain ‘initiation’ phase of development process
o vision/strategy/search: Property development begins with a thought, often driven by a need, to build something. o At this point different thoughts, limitations, goals etc are considered and a project idea emerges. eg: Deakin: if student numbers are up and the Deakin-VC sees a need to build more class rooms.
Either of two events occurs:
- A parcel of land (or site) is considered suitable for a different or more intensive use than its existing use
- There is an increased level of demand for a particular land use, which in turn leads to a search for a suitable site.
Investigation and Analysis of Viability phase:
Five (5) areas of inquiry occupy the developer throughout the project:
- Site analysis: What are the physical, environmental, and legal conditions of the site?
- Market support: What are the prices, rate of
absorption, and product mix that the market will support? - Community support and development conditions: What is the level of community support, how long will it take to get a development approved, and what requirements will the community impose as a condition of approval?
- Product and project design: What product configuration, site design, and project design fit the site, respond to the market, are consistent with community requirements, and can be constructed cost-effectively?
- Construction costs: How much will it cost to construct the project as designed, and what is the best way to shape the design so it can be constructed cost-effectively?
o The evaluation state is the most important stage of the development process explain
o General and specific market research
o Financial feasibility
o Information is costly. So, will you just ignore this stage?
o Some assumptions are to be incorporated, but not too many.
o Distinction between private and PPP projects
o Failing to pass the feasibility test today does not mean that the plan is not feasible tomorrow
o Feasibility test MUST be conducted before committing to the development.
o The viability analysis must be constantly re-evaluated and monitored throughout the process of undertaking the development.
explain design and costing
o Type of construction; pre-fab? Sustainable?
o Material choices?
o Quality level sought?
o Built area; % of land to be covered?
o Consideration of basic aspect of design starts from the preliminary stages.
o The developer may have detailed knowledge of what design is required.
o -Design depends on: type of tenant, location, purchaser, etc.
o The preliminary design stage should be relatively brief: minimizing the cost before full commitment.
o It should be acknowledged that modification of design generally cannot be made after a certain stage (full commitment). Even if possible, it would be quite costly (or need new planning approvals).
o Rawlinson’s or Cordell’s cost guide manuals
o Comparative Unit (building area, $’s per volume – best for our purposes)
o Unit-in-place (individual cost units, linear or volume)
o Quantity Survey (highly detailed specialist work)
o ‘Estimates’ are OK for the assignment. Let’s discuss this
explain consent and permission phase
o State & local planning legislation
Who drives the planning outcome?
o Consider Deakin – if re-zoned after application by the developer from industrial to higher density residential, but sat within council’s strategic plan
Local Planning Authority
o Every proposed development requires planning consent or permission.
o Outline planning permission: used early on in the development stage to establish whether or not the proposed development is likely to be approved.
o Full (detailed) application: Comprehensive application including details of the development plan
explain letting managing + disposal
Leasing/sale of the building, or, the management of the building if it’s retained.
à The above is not an exhaustive list/description as there are many variables; this list is provided as a simple guide of the key elements in each stage
o Pre-sales (very important.) Consider the ‘net’ cash flow.
o Tenancy commitments.
o Forward funding.
o Development phasing (risk control.)
- gradual release of the development stages.
- ‘fishing’ ?
o Keep in mind that our developer wants to sell the final project (to one or possibly many buyers). Often the best developments are client (occupier) led developments. What does this mean?
o The aim of the implementation stage is to ensure that the development can be completed within
A) timeframe
B) financial budget
o Completion can be delayed to some extent due to unforeseen issues (natural disaster, weather condition, material procurement, etc.)
