Even if you had taken a lesson or two, you'd still only want to fly in a plane that has a professional pilot, wouldn’t you? Well, when established retailers are looking to roll out expansion plans or tap into new markets, they often call on a preferred developer with whom they’ve built trust and retained over the years.
Here are the top three benefits of hiring a preferred developer for your build to suit development or redevelopment.
You may think you lose too much control when you enlist the help of a preferred developer, but you may not even be aware of all the risks that could add up significantly. For starters, developers handle the entire process — from site selection through your occupancy — by first determining the project’s economic feasibility early on, conducting a thorough market analysis, and much more.
Also, it’s important to note that if any issues arise, especially if you’re breaking into a new, unfamiliar market, a trusted developer is useful to help cushion the blow.
Entrusting a professional can help save time, which equals money. For instance, you would have one point of contact versus having to deal with multiple parties. Managing your own development projects not only takes resources away from your business operations, but also adds costly back office office teams. Other examples of added costs could be legal expenses, change orders, and additional environmental reports.
A preferred developer holds down the land costs and provides you with a guaranteed rent number. Here’s other ways it actually pays to go through a preferred developer.
Because it is their primary line of business, preferred developers have experienced enough to have practically seen it all. If unforeseen cost overruns do occur, the developer will provide frequent updates and want to maintain being your “go-to” by even eating the cost, so it won’t exceed your agreed upon rate.
You can focus on what you do best, if you hire one to do what they do best.
The above points provide just a high-level overview of the benefits of hiring a professional, rather than going it alone. If you still have some questions about what to expect before signing that preferred developer agreement, check out the ultimate guide to working with a preferred developer below.