How to Get Started as a Commercial Real Estate Developer
According to research, commercial real estate developers in the United States make an average salary of $81,266 per year. If you are interested in getting started in this lucrative career, this guide can help.
Work With an Established Developer
One of the best ways to learn the ropes of commercial real estate development is to work with a successful developer. Find an established developer in your area who is hiring a project manager, analyst or assistant and who is interested in mentoring new developers.
Select a Site to Develop
The first step in a commercial development project is to identify a site to develop. You can do this yourself, or hire a commercial real estate broker to assist you. Factors to consider include the intended use of the property, traffic counts, and how close it is to major landmarks, interstates, and local infrastructure. It is important not to rush through this step. If you choose a bad site, your project is not likely to be profitable.
Negotiate a Contract
Once you pick out a site, you must negotiate a contract for the purchase that leaves you with plenty of financial room to develop the property and make a profit on the sale. Many developers work with a commercial real estate attorney during contract negotiations.
Commercial real estate developments are not do-it-yourself projects. You must hire contractors to handle the process of developing your site. Send your plans to multiple contractors to obtain bids. This will provide you with an idea of how much it will cost to develop the site and will be useful when you start applying for funding.
Market Your Development
Developing your site is just the first hurdle in the process. You also have to market your development because you don’t make a profit until someone buys the finished product. Digital marketing is an important component of your marketing plan.
One component of your strategy is to design an eye-catching logo to use on your website and other marketing materials. Use an online logo maker to create an appealing logo without hiring a professional designer. Choose a style and icon that matches your brand, add your text and then review the options and adjust the fonts and colors to get your finished logo.
Hire Some Professionals
You can save money on some tasks by doing them yourself, but sometimes it makes sense to hire professionals. For example, commercial buildings require complex plumbing systems that are beyond the skills of an average commercial developer. Hire Excellent Plumbing, Heating & Mechanical to ensure that the work is done correctly and according to code. Other professionals you may want to consider include, marketers, social media managers, real estate brokers, accountants and project managers.
Light for Safety
Proper lighting is essential for the success of commercial real estate development. This is particularly true if your building has a parking garage. Drivers and pedestrians need to be able to see other cars, pedestrians and obstructions so look for LED lighting options for large structures. Additionally, well-lit areas tend to experience less crime. Pay particular attention to any areas with tunnels and canopies.
Commercial real estate development isn’t an easy career to get into, but it can be a rewarding one for people with the right skill set. Following the recommendations in this guide, such as lighting your property for safety, can help you get started.