Essentials of the Development Process (Dev1)

Essentials of the Development Process

The Essentials of the Development Process is designed as an introductory level course for the professional seeking a fundamental understanding of the complete commercial real estate development process. This course presents a foundation for the study of the "eight stages of development" that are essential to delivering financially successful projects. It is based on the NAIOP core competencies of applied skills and established industry practices. The course examines commercial development from the investment decision to finding opportunities, testing feasibility, negotiating contracts, making formal commitments, construction, completion, opening and asset management. Course material will emphasize the various complex and interactive relationships between development team members, as well as the need to constantly renegotiate and problem solve throughout the development project. Class exercises are utilized to sharpen the analytical assessment skills that are critical to project development.

 

Lesson Plans

May 13, 2015

Stage One: Investment Decision

Time: noon - 2 p.m. (Eastern Standard Time)

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During this opening session, we'll explore all the factors involved in making the investment decision to proceed with a development project. This includes defining the development process and looking at real estate from an investment viewpoint. We will discuss real estate investment risks and explore the variables that accompany two different types of development projects: a site looking for a use or a use looking for a site.

May 20, 2015

Stage Two: Finding the Opportunity

Time: noon - 2 p.m. (Eastern Standard Time)

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The second stage focuses on finding a feasible opportunity for development. We'll start by defining the investment objective(s). Then we'll discuss all aspects involved in selecting a site including financial analysis, cost estimates, valuation, governmental controls and infrastructure. We'll also explore the various purchase options available for development projects.

May 27, 2015

Stage Three: Feasibility Analysis

Time: noon - 2 p.m. (Eastern Standard Time)

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We'll begin this session by defining feasibility and then address how to initiate a feasibility study. We will define the due diligence process, along with the intended outcomes, players, final outcomes and budget resources. Lastly, we will examine the factors involved in conducting a property analysis, which include understanding environmental regulations and geotechnical areas of concern; identifying access and transportation issues; and assessing proximity to other uses.

June 3, 2015

Stage Three: Feasibility Analysis (continued)

Time: noon - 2 p.m. (Eastern Standard Time)

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In this session, we'll provide an overview of real estate economics and macro level determinants of supply and demand. In addition, we'll discuss land use regulations and the impact of the political/legal environment. Course participants will learn to perform a highest and best use analysis and will demonstrate comprehension of information presented by reviewing a case study and completing assigned homework.

June 10, 2015

Stage Four: Contract(s) Negotiation

Time: noon - 2 p.m. (Eastern Standard Time)

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In this session, we'll discuss the process that commences once the developer enters into contracts with various development team members. We'll examine the eight steps in the acquisition process agreements, which include: offering the property for sale; agreement of business terms/Letter of Intent (LOI); definitive agreements; due diligence agreements; feasibility approvals; the pre-closing; the closing; and the post-closing.

 

June 17, 2015

Stage Four: Contract(s) Negotiations (Continued)

Time: noon - 2 p.m. (Eastern Standard Time)

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This segment focuses on the roles and responsibilities of each team member and presents examples of effective negotiations strategies.

June 24, 2015

Stage Five: Formal Commitments

Time: noon - 2 p.m. (Eastern Standard Time)

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We will identify the various formal commitments entered into following the negotiation process. Contracts that are finalized at this stage may include joint venture agreements, construction loan agreements, permanent loan commitments, construction contracts, exercise of land purchase options, purchase of insurance and pre-lease agreements. We'll also define the elements of a contract and identify standard language and clauses frequently used in real estate contracts. Finally, we will discuss loan documents and look at several standard contracts seen in development deals.

July 8, 2015

Stage Six: Construction

Time: noon - 2 p.m. (Eastern Standard Time)

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This session will explore the three primary influences on the construction process: cost, schedule and quality. We’ll define the developer’s role and the roles of other project team members during the construction phase and discuss general contractors versus construction managers. We will learn how to develop a project timeline using the “Critical Path Method” and strategies for keeping a project on schedule. Students will also become familiar with vital construction documents along with pertinent building codes and regulations.

July 15, 2015

Stage Seven: Completion and Formal Opening/Stage Eight: Property, Asset and Portfolio Management

Time: noon - 2 p.m. (Eastern Standard Time)

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In this final session, we’ll discuss the last two stages of a development project: completion and formal opening, and property, asset and portfolio management. In the timeframe leading up to the completion and formal opening of a project, we’ll look at the importance of having a project timeline for operations, drawing up a property management contract and creating a manual of standard operating procedures. In addition, we'll discuss the roles and responsibilities of the property asset team and talk about how developing a thorough marketing plan increases advertising for the completed project. Other aspects involved in preparing for the formal opening include obtaining local approvals for occupancy, ensuring that all necessary utilities are connected and, finally, facilitating tenants’ move in. In the property, asset and portfolio management phase, we’ll discuss ensuring the construction loan is paid off, obtaining permanent loan financing, maximizing investment objectives, overseeing leasing activity and property management, and reconfiguring remodeling and remarketing space as necessary to extend its economic life.

Education Credits

Education Credits

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Essentials of the Development Process is approved for the following Education Credit:
16 hours credit toward the Certificate of Advanced Study in Commercial Real Estate Development.

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15 AIA/CES Learning Units
16 Professional Development Hours (PDH)
1.6 Continuing Education Units (CEUs)

Learning Objectives

Learning Objectives

  • Define and understand the eight stage model of real estate development and the overall impact to the viability and success of a project
  • Develop analytical assessment skills which include how to conduct investigative research necessary to determine the viability of a development and site feasibility
  • Identify sources of project financing and benefits of each source
  • Identify the critical team members in the development process and the importance of the roles they play in the success of a development
  • Conduct simple pro forma analysis using the income approach to value and develop construction costs
  • Understand the critical components of construction management, what it takes to have a successful project opening and strong asset management strategy

Tuition & Register

Tuition & Register

Cancellation Policy

All cancellations must be in writing. Cancellations of registrants received after December 26, 2013 will be charged a fee of $100 per attendee. Cancellations received after January 8, 2014, will forfeit the registration fee. No refunds will be made for no-shows. Substitutions are permitted until January 8, 2014. Non-members substituting for members will pay the difference in fees. Please fax all cancellation/substitution notices to (703) 904-7003.

FAQs

FAQs

What are the computer requirements?

The interactive sessions will be accessed via GoToWebinar.com.

Please use the list below to determine if your computer meets the minimum requirements recommended to participate in the online courses:

To attend on a PC, the following is required:

  • Internet Explorer® 6.0 or newer, Mozilla® Firefox® 2.0 or newer (JavaScript™ and Java™ enabled)
  • Windows® 2000, XP, 2003 Server or Vista
  • Cable modem, DSL or better Internet connection
  • Minimum of Pentium® class 1GHz CPU with 512 MB of RAM (Recommended) (2 GB of RAM for Windows® Vista)

To attend on a Mac®, the following is required:

  • Mac OS X 10.4 (Tiger®) or newer
  • Safari 3.0 or newer, Firefox 2.0 or newer (JavaScript™ and Java™ enabled)
  • Cable modem, DSL or better Internet connection
  • Power PC G4/G5 or Intel processor (521 MB of RAM or better recommended)

Participants wishing to connect to audio using VoIP will need a fast Internet connection, a microphone and speakers (a USB headset is recommended).

Contact Barb David at barbd@naiop.org for more information.

Do I have to take an exam?

Course exams are not required unless you are enrolled as a candidate for the Certificate of Advanced Study in Commercial Real Estate or the Certificate of Advanced Study in Real Estate Finance.

Is there an online instructor?

Yes, there is a live instructor presenting each class. Students are able and encouraged to engage and interact with the instructor and each other.

What does tuition cover?

Payment for a NAIOP online course entitles access for one person only to the course and all materials.

What if I miss a scheduled class?

If a student misses a class, all materials and a recording of each class is posted in the material library for the student to review before the next class. A student must attend a minimum of 75 percent of the classes to receive credit.

What records are kept of my coursework?

The Center maintains records of all the coursework you complete, as well as optional exam scores, in a confidential transcript. Transcripts are available to candidates upon request. Please contact education@naiop.org.

How much out-of-class work is required for each course?

Courses offered online require no more than one hour per week of additional work outside of the scheduled class times.

What are the computer requirements?

The interactive sessions will be accessed via GoToWebinar.com.

Please use the list below to determine if your computer meets the minimum requirements recommended to participate in the online courses:

To attend on a PC, the following is required:

  • Internet Explorer® 6.0 or newer, Mozilla® Firefox® 2.0 or newer (JavaScript™ and Java™ enabled)
  • Windows® 2000, XP, 2003 Server or Vista
  • Cable modem, DSL or better Internet connection
  • Minimum of Pentium® class 1GHz CPU with 512 MB of RAM (Recommended) (2 GB of RAM for Windows® Vista)

To attend on a Mac®, the following is required:

  • Mac OS X 10.4 (Tiger®) or newer
  • Safari 3.0 or newer, Firefox 2.0 or newer (JavaScript™ and Java™ enabled)
  • Cable modem, DSL or better Internet connection
  • Power PC G4/G5 or Intel processor (521 MB of RAM or better recommended)

Participants wishing to connect to audio using VoIP will need a fast Internet connection, a microphone and speakers (a USB headset is recommended).

Contact Barb David at barbd@naiop.org for more information.