Longmont , CO
(720) 600-9513
Longmont , CO
(720) 600-9513

What to Consider Before Your First Development Project

Tag: Multifamily Development

What to Consider Before Your First Development Project

September 14, 2022

What is Commercial Real Estate Development?

Commercial real estate development involves purchasing a piece of land or an existing structure and creating a new facility. This could mean purchasing land and building an apartment complex or buying an old commercial warehouse and renovating it into a wedding venue. 

As you might imagine, the development process has many moving pieces. Some investors shy away from development projects and stick primarily to buying already-built structures. However, when done correctly, development can yield significant profits for willing investors.

What to Consider Before Development

Before beginning a commercial real estate development project, there are a few essential items to consider.

Risk

While the risk of development tends to be higher than simply purchasing an existing structure, it can pay off in the long run. Before developing, be sure you fully understand and feel comfortable with any associated risks.

Financing

There are many types of commercial financing, including lines of credit, construction loans, and portfolio loans. Connecting with an experienced commercial lender will help you determine the right kind of financing for your project.

Building Site

Choosing a piece of land or structure can be one of the most challenging parts of the process. Your real estate agent will help guide you through contract negotiation, zoning regulations, and any necessary inspections. 

Construction

As the developer, it’s your job to bid out and supervise construction. Managing subcontractors can be time-consuming, so it’s important to allot enough margin to navigate challenges that arise through the construction process. 

Sale or Leasing

Finally, when all is said and done, you must be sure you have the right sales or leasing team to market your new development and find the right buyer or tenant. 

Build Your Real Estate Team

Before beginning your first commercial real estate development project, you should spend time assembling the right team. Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 with any questions or if you have any commercial real estate needs in Longmont, CO, and our neighboring communities.

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Multi-family Developments Easing the Affordability Issue

June 8, 2022

Rising Real Estate Prices

Real estate all over the country has seen a dramatic increase in prices over the last two years. Historically-low interest rates, coupled with minimal supply and the ability to work remotely, sent residential real estate sales through the roof. The reshuffling of the real estate market saw consumers reimagining what they wanted in their perfect home.

Many external factors have created a real estate market unlike anything we have ever seen before. While every market is unique, there seems to be one central theme—high prices. 

The Affordability Issue

As real estate appreciated at double-digit rates, many people were left on the sidelines, unable to save fast enough to keep up with increasing values. Home builders can’t build fast enough, and land has gotten so expensive that developers can’t even take the first step.

So how do we cope with this affordability issue affecting the Northern Colorado real estate market and most other areas across the country? Multi-family developments may be the key.

Multi-family Developments to the Rescue

Multi-family developments are buildings or complexes that contain multiple housing units, such as townhomes or condominiums. Developers can cut costs by buying smaller pieces of land that become home to higher-density housing. Multi-family real estate is also less expensive to build than single-family residences as units share walls, roofs, utilities, etc. 

Prices remain high, and in the Colorado market, they continue to rise, meaning buyers need affordable options. With homebuyers on the hunt for a less expensive option, the demand for multi-family units presents an incredible opportunity for those interested in commercial real estate.

Many commercial real estate investors and developers have set their sights on multi-family developments as they consider their next projects. If you have any questions about the multi-family real estate market in Longmont, CO and our neighboring communities, please contact Steve at WeBrokerCORealEstate or 720-600-9513.

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