In one of our recent blogs, we broke down four of the most common off-site improvements that are found in the commercial real estate development world. Access roads, sidewalks, and curbs - this supplemental site work is often required and generally necessary to help improve the value and validity of your commercial project.
So, now that we’ve taken a look at some of the most common off-site work, let’s see how those off-site improvements impact your overall project.
Impact the Ability to Obtain Permits
Local governments typically impose conditions on commercial developers and property owners before they are willing to approve a development project. Municipalities view this as a way to ensure infrastructure demands are met without imposing taxes or burden on the community or taxpayers.
Affect Overall Budget and Schedule
Any work outside the realm of specific site development will add costs and time to the overall project. As discussed throughout the common issues examples, off-site improvements can add significant costs to your projects. Depending on the type of work and conditions, these can add anywhere from weeks to months onto your project schedule and require multiple government agencies to sign off for approval.
Adds value to the entire development project
On the positive side, while these improvements often add costs and time to your project, adding infrastructure around/to your project ultimately adds value. The challenges that may come with off-site improvements are typically offset by knowing that most work is meant to contribute to bettering the surrounding properties. Ideally, this work should help you avoid future issues and, once constructed, creates equity and value for a long-term investor.
While off-site improvements come with their drawbacks, they are simply a part of the commercial real estate development process and necessary to fully complete successful development projects.