Apr 3, 2023

What is Commercial Development

You’ve probably come across the term “Commercial Development” and are wondering what it is all about, we are here to explain it.

Development is defined as a gradual growth or formation of something, Commercial indicates the purchasing and selling of goods and services. Therefore, Commercial Development is the process of transforming private land for businesses that are not residential or heavily industrial. Some examples of Commercial Developments are hospitals, medical facilities, educational facilities, plant nurseries, restaurants, malls, business offices, service stations and more.

Now you are asking yourself what a Commercial Developer does. A Commercial Developer is liable for the buying, building, and leasing/selling of commercial estates. They oversee the entire project from the purchase of the land to the final touches. A good Developer finds the land that would be best suited after assessing different options, gets the titles, zoning approvals, building permits, financing and all that is needed, by the time the developer is done they have created a very hot commodity.

The length of the commercial development process may vary, some projects can take years to finalize the purchase of the land alone. The success or failure will depend mostly on how site selection and assessment process is approached. Many successful developers know it is better to pay up and buy the absolute best location possible. There are a few Phases to this.

Phase One: Initiation and Evaluation

This stage is to determine the purpose of the project and the plans to approaching the project entirely. It is to determine the advantages and risks involved including the costs associated.

Phase Two: Land and Property Acquisition

This is one of the most important parts of the process, knowing which land and/or structure should be acquired that would be best suited for the project. As you may know, location is a significant consideration as it will affect many factors before during and after the project’s completion.

Phase Three: Designs and Permissions

In this phase several concepts and designs are submitted to gain the approval of everyone involved including investors, city, and government officials.

Phase Four: Construction

This is where things start getting done, this is the execution of the project, bringing it to life. Physical, tangible structures, building all that is needed from framework to service installations.

Phase Five: Management or Disposal

This phase involves the management of the entire project, it will continue after construction phase. This is deciding how the project is to run after construction and disposal of it after its functional life span.

What is construction vs Development?

Construction is any physical activity on the job that involves the erection of a structure, external finishes, formwork, fixture, proper service installations such as pluming electrical wiring and more, or Construction can refer to any modification done on a building’s existing spaces. To summarize, Construction is a very important phase and part of the Development of the land while Development oversees the entire process from Initiation to completion.

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