Property Developer

Real estate development is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property.

Real estate development is different from construction. Developer Louis Lesser drew the distinction in a 1963 New York Times article, Developing is the key word. We don t build ourselves , Mr. Lesser stresses. We buy the land, finance the deal, and then we have the best builders build under bond at a fixed cost.

Developers buy land, finance real estate deals, build or have builders build projects, 1 create, imagine, control and orchestrate the process of development from the beginning to end. Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards. Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary public approval and financing, build the structure, and lease, manage, and ultimately sell it. Developers work with many different counterparts along each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractors, leasing agents and more. In the Town and Country Planning context of the UK, 'development' is defined in the Town and Country Planning Act 1990 s55.

'Development' is defined by statute in the Town and Country Planning Act 1990 s55 1 , as 'the carrying out of building, engineering, mining or other operations in, on, over or under land, or the making of any material change in the use of any buildings or other land'. This definition is clarified by the remainder of s55 and the inclusion of the Generally Permitted Development Order 1995 and the Use Classes Order 1987.

No single path leads automatically to success in real estate development. Developers come from a variety of disciplines real estate brokerage, mortgage banking, consulting, construction, lending, architecture, legal services, among others. Recent specialized programs that award a Master of Real Estate Development degree are also available. The graduate programs in real estate development are the most comprehensive education in the industry. Other formal education includes a Master of Science in Real Estate, or an MBA.

A development team can be put together in one of several ways. At one extreme, a large company might include many services, from architecture to engineering. At the other end of the spectrum, a development company might consist of one principal and a few staff who hire or contract with other companies and professionals for each service as needed.