By: Elizabeth Galewski
Intense competition, inadequate infrastructure, and restrictive zoning laws. These are some of the common challenges real estate developers face.
No one knows how to overcome these challenges better than Charles Carey, serial entrepreneur and founder of Magnifica, an exclusive new community in the booming Orlando, Florida, area. Carey has established himself as a leader in the real estate industry nationwide.
According to Carey, developing real estate in boomtowns like Orlando entails a unique set of challenges, but employing premier practices can help overcome these.
Challenges That Face Large Real-Estate Developments
“First of all, get ready to compete for land,” Carey says. “Demand is high, and desirable locations are limited. Savvy developers need to be able to spot opportunities quickly when they arise because otherwise, they can easily miss them.”
Another common problem is inadequate infrastructure. “Let’s say you’ve found an amazing parcel,” Carey posits. “How are people going to get there? What’s the state of the roads? How about utilities? Does the city already have plans for that land? Practicalities like these need to be considered from the beginning. You might have found a beautiful piece of land, but if the development doesn’t align with the city’s long-term vision, it might not be the golden opportunity you want it to be.”
This brings us to the next common problem: regulatory hurdles. “Zoning laws can be a huge headache,” Carey notes. “Developers need to know them inside and out. You should also stay on top of building codes, local ordinances, and environmental regulations, and be aware of the standard processes that the municipality uses to engage the community and gather feedback.”
Finally, Carey points out that funding such developments can pose difficulties. “Market conditions are always changing,” he says. “Smart developers put plans in place that ensure the project’s financial feasibility. Sudden fluctuations happen, so it’s wise to expect the unexpected.”
In Carey’s experience, these challenges can be successfully overcome by employing some premier practices.
The Importance of Good Relationships
“Relationships, relationships, relationships,” Carey says. “Cultivating good working relationships with authorities, community members, and other stakeholders is probably the number one thing real-estate developers should do.”
According to Carey, when real estate developers have healthy connections with regulators and the community, it becomes easier to navigate the complexities of the real estate landscape. “They can help you avoid possible pitfalls, connect you to the right people, and give advice about how to pitch your project to others you may need to bring on board,” Carey explains. “If infrastructure improvements need to be made, these relationships can make the difference between a project that comes to fruition and one that never gets built.”
In short, the result is a much smoother process. “Communication and collaboration skills tend to be underrated,” Carey says, “but one almost needs to be a diplomat in this business.”
Carey suggests that, for dialogue to be productive, it needs to be meaningful, transparent, and truly address stakeholders’ concerns. “Trust is essential for these endeavors,” he says. “If trust is broken, it can stall the whole project or even end it prematurely.”
Planning For The Unexpected
Carey also recommends doing one’s due diligence from the beginning. “The importance of market research can’t be overstated,” he says. “You’ve got to understand the local market. What trends are emerging? How strong is demand, and what kind of housing is needed? What other projects are currently in the works to meet that demand? How would your project differentiate itself?”
According to Carey, developers should also be prepared to pivot if necessary. “This industry is inherently dynamic,” he explains. “Maybe the market shifts unexpectedly, the City Council suddenly passes a new regulation, or conversations with community members raise a new concern. Whatever happens, you need to be able to adapt.”
The good news is that these problems can also be opportunities. “Once you start brainstorming possible solutions, you might discover that you could leverage the problem in exciting ways,” Carey says. “It can be a chance to get creative and innovate.”
The Importance Of Sustainability
Carey also advises aspiring developers to embrace sustainability. “Ultimately, sustainable practices ensure the long-term viability of your development,” he says.
Another reason developers need to demonstrate their commitment to eco-friendly construction is public opinion. “People have become increasingly aware of environmental concerns,” Carey says. “It’s a simple question of appeal. Your development won’t be as attractive if it doesn’t integrate renewable energy or green building practices.”
Indeed, recent statistics suggest that only 21 percent of US realtors perceive buyers as being either “somewhat” or “very” uninterested in how sustainable a property is. On the other hand, they reported 48 percent of consumers as being “somewhat” or “very” interested in it.
Bring Your Vision To Life
While developing large real estate projects in booming cities can be expected to present hurdles, with the right approach, developers can clear them and bring their vision to life.
“Be adaptable and resilient,” Carey recommends. “Don’t just talk — listen. Keep your eyes open and be ready to pounce since opportunity waits for no one.”
Published by: Khy Talara
