Discuss the Process of Real Estate Development

The Process of Real Estate Development

Although the process for development of real estate varies from project to project, the various phases can be categorized roughly as follows (in approximate chronological order):

Market research

Site selection / feasibility analysis

Due diligence / preliminary pro forma

Property acquisition, perhaps using option to buy

Project design / refined pro forma

Obtain entitlements

Financing / final pro forma


Lease-up / sales

Operation (in cases where the project is retained as an asset)