For companies looking to expand through new development, one of the biggest questions is whether to handle it in-house or use an outside developer. For those unfamiliar with the process, there may be some hesitation due to misinformation or potential drawbacks.
Yet, partnering with a preferred developer offers countless benefits to you and your business. Here are some myths debunked about working with a commercial developer.
Lengthy communication/decision-making process
It’s not easy finding a developer who will help you navigate multiple issues that arise and deal with red tape and bureaucracy. The truth – finding a developer who values communication and timeliness means you get answers to questions when you need them. It also means you have the backing of an industry expert.
A sound preferred developer will help create a customized strategy that brings consistency to not just one project but several within a client’s expansion plans. This helps streamline communication and the decision-making process. The more the developer knows about your client the better the relationship.
Unnecessary development fees
You’re concerned you may be charged hundreds of thousands of dollars on development fees. This is a headache you don’t’ want. The truth – finding the right partner with the right resources means you can keep your costs low.
Let’s call a preferred developer a one-stop shop because, honestly, it provides everything during the entire development process. A preferred developer will save you money by helping keep your overhead low. This is important as few tenants handle their own development in-house. Managing your own development projects translates to adding costly and unnecessary back office teams. A preferred developer already possesses these resources.
Remember, you get a partner willing to perform numerous tasks and take on risks associated with the real estate development process and construction costs. As you know, commercial real estate projects sometimes face the risk of unexpected costs. A preferred developer is willing to absorb the burden of these cost overruns.
Losing control over your project
Not managing the development yourself means you lose control over the process. The truth – finding the right developer allows you to collaborate, have significant input, and end up with a project that meets all of the qualifications but without all of the risk of doing it yourself.
If you have several projects in the pipeline, a preferred developer will serve as a single source to manage each one and let know where each stand. The undesirable option is you have several developers working on numerous projects at the same time. It’s highly likely they will not be communicating with each other. Which means they are taking different approaches to your projects and your goals.
You’re worried that because development is being managed under your roof that you’re not getting the full story. The truth – through reporting, communication, and accountability, a preferred developer should be a partnership about transparency, consistency, and dependability.
Isn’t transparency what we all strive for, no matter the project? When you collaborate with a preferred developer, you get a partner that understands your brand, your business, and your goals. Communication is an offshoot of transparency. The more a developer knows about your strategic plan or the way you do business, the better the transparency. As each project is completed, you both learn a little more about each other.
That’s a relationship with which everyone can live – and be successful.