Real estate and business development professional Michael Snedeker is the executive vice president of Elite Building Corp. in Massachusetts. Michael Snedeker focuses on commercial real estate development in the Boston area.
Developing commercial real estate is an intensive and involving process. While many people know the obvious considerations of development work, such as manpower, tenant needs, sources of finance, and the cost of development, other lesser-known considerations are equally important, including:
- Availability of quality raw materials.
Before construction begins, extensive research must be conducted to make certain that good raw materials are available locally. Substandard raw materials affect the durability and stability of a building. The last thing a builder wants is to stall a commercial development project because raw materials have to be sourced from far away.
- Permits and regulations.
Many municipalities have regulations on the types of commercial construction allowed. In addition, permits have to be applied for and approved, which takes varying amounts of time. On top of all that, environmental and worksite safety rules come into play. All these must be factored in before construction starts.
- Ease of expansion.
Commercial buildings usually last decades. Down the line, expanding or even renovating the building may be necessary. The design and construction of the building will determine how easy or difficult it is to expand or renovate in the future.
- Maintenance costs.
Building costs are just the beginning. Commercial properties require regular maintenance to keep them up to standard. Maintenance is expensive, and it affects the bottom line. Developers must make appropriate internal and external adjustments to the building’s design to minimize maintenance costs.
