Development
What is it?
Development real estate involves acquiring land or existing properties with the intent to build new structures, redevelop, or repurpose. This could range from ground-up construction to full-scale renovations and value-add projects.
This segment offers high reward but also higher risk and longer timelines.
Ground-Up Development
Projects built from scratch—residential subdivisions, apartment complexes, office towers, or shopping centers. Investors are involved from land acquisition through permitting and construction.
Redevelopment or Value-Add
Revitalizing underused or distressed properties to improve value and usability. May involve renovations, rezoning, or repositioning the asset for a new purpose.
Mixed-Use Developments
Combines residential, retail, and office space in a single project. These developments are popular in urban areas and create live-work-play environments.
Infill Development
Constructing new buildings on vacant or underutilized land within existing urban areas. These projects help cities grow more efficiently by leveraging existing infrastructure.
Subdivision Development
Breaking up large parcels of land into smaller lots for individual home construction. Popular in suburban growth corridors.
Build-to-Rent Communities
Purpose-built single-family home communities designed specifically for renting. These developments offer a hybrid of residential and commercial appeal.
Benefits in Investing
High ROI Potential – Development can deliver some of the highest returns in real estate.
Customization – Tailor the design and use based on market demand.
Equity Creation – You build value from the ground up.
Community Impact – Revitalize neighborhoods and increase property values.
Tax Incentives – Development projects often qualify for special zoning or tax breaks.
Final Thoughts
Development real estate isn’t for the faint of heart, but it’s where big value is created. Development projects require careful planning, zoning knowledge, and coordination with architects, engineers, and city officials. They often involve phases of design, entitlement, financing, and construction before reaching the leasing or selling stage. With the right team, vision, and execution, development projects can generate long-term wealth and reshape entire communities.