The cost of doing business today is greater than ever. Competition is fierce and the bottom line, as it has been, is a top priority.
So, as companies look to address their expansion plans, what’s going to provide them the greatest value?
In steps a preferred developer and the significant financial benefits they provide. Let’s take a look at a few examples of how a preferred developer can help keep your costs of doing business lower.
Save Company Overhead
A preferred developer helps you keep overhead low. Managing your own development projects means adding costly back office teams and additional related overhead. An expansive rollout could mean a mind-boggling amount of additional personnel. But a preferred developer eliminates that need by managing the expansion process using their team of experts.
Save Legal Expenses
Why spend hundreds of thousands of dollars in legal fees, working with multiple parties when you don’t have to? When trying to get a couple dozen deals done, using a preferred developer can simplify the process. With a preferred developer, you can establish one lease one time and save the hassle of costly, lengthy negotiations.
Save Up-Front Capital
One of the most crucial questions companies will ask when looking to expand is, “do we have the financial resources to develop multiple sites in multiple markets?” With a preferred developer, companies can reduce their up-front capital that comes with investing in commercial real estate. So, instead tenants can use that capital to instead help grow their business.
A preferred developer reduces the need to find resources in a number of markets, fields, etc. Trying to partner with architects and contractors in a dozen different markets can make for a lengthy and tedious development process. But using a preferred developer puts all of that under one roof, with one point of contact for your company.
Save on Construction Costs
When you get down to the nitty gritty, project construction can produce a number of unanticipated but necessary expenses. From running into environmental issues to changes of certain conditions. Most of those issues result in overall increased construction costs and risk.
When those issues do emerge, the developer will carry the financial burden and risk.
Save You From Market Risk
There are also significant cost risks based upon the potential for changing market conditions. For example, fluctuations in the market can mean changes in material and labor prices. These factors can lead to costly overruns and a more complicated project. Your developer can help mitigate those challenges and, again, carry the burden of those market risks.
At the end of the day, costs and bottom line are driving forces when moving forward with your next project. Using a qualified preferred developer can help you navigate and minimize the cost risks of going it alone.