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

Week 1

Stage One: Investment Decision

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.

Facilitator for this Lesson:
Dave Domres

Dave Domres, CPM® CCIM

Senior Vice President

Siegel-Gallagher Management Company

Milwaukee, Wis.

Subject Area: Financial Analysis of Development Projects

In his 30 year career, David Domres CPM® CCIM has been involved in virtually every aspect of real estate investment, management and development in numerous capacities including Asset and Property Manager for office, medical, corporate, retail, industrial and multi-family properties.   Individual property portfolios have totalled more than 30 million square feet of commercial space and 5,000 apartment units. David is a Certified Property Manager®, Certified Commercial Investment Member and a frequent speaker, instructor and author on real estate strategy, investment, management, financial analysis and property performance.

David's extensive career experience includes service to individuals, corporations and full service real estate companies. David is well respected for his innovation, attention to detail, implementation and professionalism with asset, property and facility management, capital project planning and implementation, investment and leasing transactions, strategic planning and forecasting.  His passion goes beyond the workplace to support real estate in the community as the past President of numerous professional real estate associations including 2008 NAIOP Wisconsin Chapter President, NAIOP Corporate Board member from 2010 – 2012, 2013 NAIOP National Volunteer of the Year Award and being recognized three times as CPM of the Year by the Milwaukee Chapter of the Institute of Real Estate Management and 2012 IREM Professional Achievement Award


Week 2

Stage Two: Finding the Opportunity

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

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.

Facilitator for this Lesson:
Timothy Hennelly

Timothy Hennelly

President, Great Lakes Region

Ryan Companies U.S. Inc.

Naperville, Illinois

Subject Area: Advanced Development Practices

With more than 23 years experience in the real estate industry, Tim Hennelly has a well-established track record of performance in site selection, planning and design concepts, financial packaging, managing construction coordination and lease or sale negotiation. Having previous experience as an executive for several real estate and brokerage firms, Hennelly understands the challenges of the industrial marketplace.

Week 3

Stage Three: Feasibility Analysis

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

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.

Facilitator for this Lesson:
Don Logie

Don Logie

Senior Vice President, Development

Build Toronto, Inc.

Toronto, ON

Subject Area:

Don Logie is a senior real estate executive with extensive experience in the development and operation of commercial, industrial and residential real estate with particular emphasis on mixed-use developments. Don has been involved in the development of over 3,000 residential units and the asset management of over 20 million sq. ft. of retail and office developments.

As Senior Vice President, Development, Don is responsible for directing commercial and industrial development from identification of innovative and marketable concepts through the implementation phases of planning, marketing and construction.

In 2008 Don was Acting President & CEO as well as Vice President, Development for the City of Toronto Economic Development Corporation (TEDCO) overseeing the restructuring of City real estate and economic development functions into two new corporations.

Don is a member of the Professional Engineers of Ontario and of the International Conference of Shopping Centres. Don received his Bachelor of Applied Science in Civil Engineering from the University of Waterloo and his MBA, graduating on the Dean’s list, from the University of Toronto.

Week 4

Stage Three: Feasibility Analysis (continued)

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.

Facilitator for this Lesson:
Don Logie

Don Logie

Senior Vice President, Development

Build Toronto, Inc.

Toronto, ON

Subject Area:

Don Logie is a senior real estate executive with extensive experience in the development and operation of commercial, industrial and residential real estate with particular emphasis on mixed-use developments. Don has been involved in the development of over 3,000 residential units and the asset management of over 20 million sq. ft. of retail and office developments.

As Senior Vice President, Development, Don is responsible for directing commercial and industrial development from identification of innovative and marketable concepts through the implementation phases of planning, marketing and construction.

In 2008 Don was Acting President & CEO as well as Vice President, Development for the City of Toronto Economic Development Corporation (TEDCO) overseeing the restructuring of City real estate and economic development functions into two new corporations.

Don is a member of the Professional Engineers of Ontario and of the International Conference of Shopping Centres. Don received his Bachelor of Applied Science in Civil Engineering from the University of Waterloo and his MBA, graduating on the Dean’s list, from the University of Toronto.

Week 5

Stage Four: Contract(s) Negotiation

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.

 

Facilitator for this Lesson:
George Pincus

George Pincus, J.D.

Shareholder

Stearns, Weaver et al

Ft. Lauderdale, Florida

Subject Area: Essentials of the Development Process, Basic and Advanced Real Estate Finance, Real Estate Law and Land Use Policy, and Leasing, Marketing and Negotiations

George Pincus is a Shareholder in the Real Estate Department. His practice focuses on office, industrial, retail and build-to-suit leasing, real estate finance and loan work-outs, acquisition and sale transactions and real estate private equity matters, including the formation of real estate investment funds and negotiation of joint venture agreements. Well versed in representing landlords, tenants, lenders, borrower, buyers, sellers, funds and investors in real estate and private equity transactions, Pincus is a solution-driven attorney who recognizes the importance of getting deals closed for his clients.

Pincus has been actively involved with NAIOP for many years and has served in a variety of leadership positions in NAIOP's local, state and national organizations. Pincus has published a number of articles on commercial leasing topics. He is often asked to participate as an instructor in continuing education programs sponsored by the Florida Bar, NAIOP, IREM and other real estate professional organizations.

Week 6

Stage Four: Contract(s) Negotiations (Continued)

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

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

Facilitator for this Lesson:
George Pincus

George Pincus, J.D.

Shareholder

Stearns, Weaver et al

Ft. Lauderdale, Florida

Subject Area: Essentials of the Development Process, Basic and Advanced Real Estate Finance, Real Estate Law and Land Use Policy, and Leasing, Marketing and Negotiations

George Pincus is a Shareholder in the Real Estate Department. His practice focuses on office, industrial, retail and build-to-suit leasing, real estate finance and loan work-outs, acquisition and sale transactions and real estate private equity matters, including the formation of real estate investment funds and negotiation of joint venture agreements. Well versed in representing landlords, tenants, lenders, borrower, buyers, sellers, funds and investors in real estate and private equity transactions, Pincus is a solution-driven attorney who recognizes the importance of getting deals closed for his clients.

Pincus has been actively involved with NAIOP for many years and has served in a variety of leadership positions in NAIOP's local, state and national organizations. Pincus has published a number of articles on commercial leasing topics. He is often asked to participate as an instructor in continuing education programs sponsored by the Florida Bar, NAIOP, IREM and other real estate professional organizations.

Week 7

Stage Five: Formal Commitments

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.

Facilitator for this Lesson:
Joan Woodard

Joan Woodard

President & CEO

Simons & Woodard Inc

Santa Rosa, Calif.

Subject Area: Essentials of the Development Process, Advanced Development Practices, Leasing Marketing and Negotiation, Site Feasibility and Financial Analysis of Development Projects

Joan Woodard has more than 35 years in the commercial real estate development and management business. She is currently the president and CEO of Simons & Woodard, Inc. in Santa Rosa, Calif. Ms. Woodard is responsible for overseeing architecture, marketing, leasing, property and financial management. Ms. Woodard began her career in real estate as a financial analyst and project manager in Atlanta with John Portman. She worked on architectural and development projects all over the world. In 1985, she joined Walt Disney on the West Coast as vice president for Disney Development, where she developed short and long-term plans for the company's use of real assets, among which was the planning process that resulted in Disney's corporate headquarters in Burbank and Disney's California Adventure in Anaheim.

Week 8

Stage Six: Construction

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.

Facilitator for this Lesson:
Matthew O'Malley

Matthew O’Malley

Vice President

Clark Construction Group, LLC

Bethesda, Maryland

Subject Area: Essentials of the Development Process, Construction Management (NAIOP’s Continuing Education Programs)

Matt O'Malley is a vice president with Clark Construction Group, LLC, where he helps lead the acquisition of work efforts for the Mid Atlantic Region. Mr. O'Malley also works closely with the Preconstruction Services Group that provides budgeting and scheduling, as well as other project planning services during the design phase to institutions, public entities and private developers in the Washington, D.C. area. Mr. O'Malley joined Clark Construction Group, LLC in 2000 where he began working with the Clark estimating department. Mr. O'Malley moved on to serve as the project manager for the construction of the new International Monetary Fund Headquarters in Washington D.C., before joining the Preconstruction Services department in 2005.

Mr. O’Malley received a bachelor’s degree in architecture from the University of Virginia, a master of business administration from the University of Maryland and has completed the degree requirements for the master of science in real estate at The Johns Hopkins University.

Mr. O'Malley teaches Essentials of Design and Construction at the University of Maryland graduate real estate program, as well as two courses at Georgetown University's graduate real estate program: Introduction to Construction Management and Construction Estimating and Procurement. He is a LEED Accredited Professional, and a member of several professional organizations in the DC area including NAIOP, ULI, the Washington Building Congress and the DC Building Industry Association.

Week 9

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

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.

Facilitator for this Lesson:
Joan Woodard

Joan Woodard

President & CEO

Simons & Woodard Inc

Santa Rosa, Calif.

Subject Area: Essentials of the Development Process, Advanced Development Practices, Leasing Marketing and Negotiation, Site Feasibility and Financial Analysis of Development Projects

Joan Woodard has more than 35 years in the commercial real estate development and management business. She is currently the president and CEO of Simons & Woodard, Inc. in Santa Rosa, Calif. Ms. Woodard is responsible for overseeing architecture, marketing, leasing, property and financial management. Ms. Woodard began her career in real estate as a financial analyst and project manager in Atlanta with John Portman. She worked on architectural and development projects all over the world. In 1985, she joined Walt Disney on the West Coast as vice president for Disney Development, where she developed short and long-term plans for the company's use of real assets, among which was the planning process that resulted in Disney's corporate headquarters in Burbank and Disney's California Adventure in Anaheim.

Education Credits

Education Credits

 center for education logo

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.

AIA Logo

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

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

Course Tuition

Member

$795

Non-member  

$995

Developing Leader

$595

Student Member

$95

Student Non-Member

$145

How to Register

  • Register online
  • Fax: Complete the PDF form and fax to 703-904-7003
  • Mail: Send check payments to: P.O. Box 333354, Chantilly, VA 20153 
  • Register over the phone/questions: 800-666-6780

Confirmation

All registrations processed online receive an automatic confirmation. If you register via fax, mail or phone, the confirmation emails will be sent to you after your payment is received and processed. If you do not receive the confirmation emails within two weeks, please contact bell@naiop.org.

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.