Real Estate Development


Real Estate Development
is a Multifaceted Business

Encompassing activities that range from the renovation and re-lease of existing building to the purchase of raw land and the sale of improved parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property. They create, imagine, fund, control and orchestrate the process of development from the beginning to end. Developers usually take the greatest risk in the creation or renovation of real estate -- and receive the greatest rewards. Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary public approvals and financing, build the structure, and lease, manage, and ultimately sell it.

Paths for entering the development field

Main article: Real estate development education

No single path leads automatically to success in real estate development. Developers come from a variety of disciplines--real estate brokerage, mortgage banking, consulting, construction, lending, architecture, legal services, among others. Recent specialized programs that award a Master of Real Estate Development degree are also available. The graduate programs in real estate development are the most comprehensive education in the industry. Other formal education includes a Master of Science in Real Estate, or an MBA.

Organizing for development

No matter how talented an individual, development is a team effort. A development team can be put together in one of several ways. At one extreme, a large company might include many services, from architecture to engineering. At the other end of the spectrum, a development company might consist of one principal and a few staff who hire or contract with other companies and professionals for each service as needed.

Assembling a team of professionals to address the environmental, economic, physical and political issues inherent in a complex development project is critical. A developer's success depends on the ability to coordinate the completion of a series of interrelated activities efficiently and at the appropriate time.

The development process requires skills of many professionals: architects, landscape architects, and site planners to address project design; market consultants to determine demand and a project's economics; attorneys to handle agreements and government approvals; environmental consultants and soils engineers to analyze a site's physical limitations and environmental impacts; surveyors and title companies to provide legal descriptions of a property; and lenders to provide financing.

Land development

Purchasing unused land for a potential development is sometimes called speculative development.

Subdivision of land is the principal mechanism by which communities are developed. Technically, subdivision describes the legal and physical steps a developer must take to convert raw land into developed land. Subdivision is a vital part of a community's growth, determining its appearance, the mix of its land uses, and its infrastructure, including roads, drainage systems, water, sewerage, and public utilities.

In general, land development is the riskiest but most profitable technique as it is so dependent on the public sector for approvals and infrastructure and because it involves a long investment period with no positive cash flow.

After subdivision is complete, the developer usually markets the land to a home builder or other end user, for such uses as a warehouse or shopping center. In any case, use of spatial intelligence tools mitigate the risk of these developers by modeling the population trends and demographic make-up of sort of customers a home builder or retailer would like to have surrounding their new locations.

San Joaquin Home Builders

A.G. Spanos A.G. Spanos Development. Founded in 1960 by Alex Spanos, the A.G. Spanos Companies has its corporate headquarters in Stockton, California and regional division offices in Florida, Georgia, Nevada, Texas, Kansas, Colorado, Arizona, South Carolina, plus Northern and Southern California.

Anderson Homes has carefully selected Builders Showcase Interiors for their design expertise, quality products, skilled installation, ability to deliver your home on time, warranties and outstanding customer service. These are the same reasons you can be assured of a wonderful design experience and a beautifully finished home.

  Award Homes is an experienced builder dedicated to providing quality homes at a true value. Each home is built with quality materials and an unmatched level of commitment to ensure years of livability and style. Every Award Homes community location is handpicked for your convenience and quality of its surroundings, ensuring that you always feel at home.

Bennett Homes

Bright Homes. For 35 years Bright Homes has been building the American Dream, serving over 5,000 families throughout California's Central Valley and Northern Nevada. Bright has distinguished itself as the leader in value, flexible plan design, and high customer satisfaction in home construction. Bright doesn't just build homes, Bright builds families, neighborhoods and communities where homeowners like you can indulge in life, liberty, and the pursuit of happiness.

FCB Homes, a regional home builder based in Stockton, California. For over 15 years, the company has built homes throughout the Central Valley and was recently named Builder of the Year by the BIA of the Delta.

Horton Homes Traditional values and a firm commitment to building a quality home has made D.R. Horton one of America's leading home builders today. Founded as a family business over 20 years ago by Don Horton, the growth and success of the company stands as a testimony from thousands of satisfied home owners across the nation. Each D.R. Horton home is the result of a focused effort of dedicated professionals committed to building you the finest in living environments.

Florsheim Homes For nearly 25 years, Florsheim has built homes in the Central Valley in promising locations full of life. Their roots here are deep and strong, and they've worked hard over the years to really understand the region, the culture, and the community. Our homes are specifically designed for the Valley with quality craftsmanship, thoughtful floor plans, and charming architectural details—priced right for the people who live here. They're the Valley's builder, and they're here to stay.

Gold Creek Homes Gold Creek Homes has been building quality homes in California since 1986. They have always realized that a home is far more than simply a residential building; a home is where families live and work together, where plans for the future are made, and where friendships take root and flourish.

Grupe Company Since 1966, The Grupe Company has been building award-winning single family communities. The company has created 10 master-planned communities and more than 50,000 homes in 35 cities nationwide.

K.B. Home For nearly half a century, families have turned to KB Home to experience the dream of new home ownership. Today, KB Home is one of the country's premier new home builders with a reputation for providing architectural innovation, tremendous quality, superior customer service and warranties, plus smart financing with their preferred lender, Countrywide KB Home Loans. Of course, the KB Home Studio is what makes buying a new KB home a truly personal experience. From cabinets to countertops, flooring to appliances, you'll find everything you need to create a unique and personalized home.

Kimball Hill Homes. A Tradition of Innovation. From quality construction to the continuing care we provide after move-in, Kimball Hill Homes® is dedicated to crafting homes and neighborhoods that create lasting value for families. Besides the exciting floor plans, you’ll appreciate having the kind of options that work for your family’s unique needs. So what are you waiting on? Let’s find a way to put you in that dream home!

New America Homes is the premier home builder in California's San Joaquin Valley. They have built communities in Fresno, Tracy, Suisun City, Livingston, and Concord. Their commitment to building quality, affordable homes assures you of getting the best value for your money. They're making the Central Valley a great place to live!

Paramont Homes The goal at Paramont Homes is to provide you with the exceptional value you deserve. By including many typical upgraded features as standard items, They have reduced the amount of change orders and upgrades needed, thus streamlining our production process and allowing them to pass the savings on to you, their valued customer!

Pulte HomesPulte Homes In 2005, Pulte Homes received the most awards in the J.D. Power and Associates New Home-Builder Customer Satisfaction Study(sm), marking the sixth-straight year Pulte achieved this distinction among America's largest homebuilding companies. Pulte operations were highest-ranked in 16 markets and were among the top three in 22 of 27 markets in which it qualified.

Raymos When Antone first began building communities, he wanted to help families realize their dream of home ownership. Over the last 60 years, Raymus Development and Sales has been committed to building homes that stand the test of time. Based on a firm belief in customer satisfaction, quality construction and exceptional customer service, Raymus Development & Sales has created a legacy that few others can match.

Richomnd American Homes Richmond American Homes  believe homeownership is at the very heart of the American Dream. Call them old-fashioned, but they believe in friendly neighborhoods, lemonade stands and backyard barbecues. After all, your home is where you create life’s memories. They take great pride in helping this dream come true for you.

Ryland Homes Ryland Homes. You can tell a lot about a company by looking into its history. Look into Ryland Homes and you'll find that they've built more than 265,000 homes across the country since 1967. That says quite a bit about the trust so many families have put in them over the years and how hard they've worked to earn it. Their constant aim is to deliver quality, value and an enjoyable customer experience with every home they build.

Seeno Homes The A.D. Seeno Construction Co. exists today because of the visions and dreams of Albert Seeno Sr., who wanted to build the perfect home at an affordable price. To this day his dreams and his vision remain a time-honored tradition throughout the company. A.D. Seeno Construction Co. has been building quality homes since its formation in 1938 and continues to bring that same dedication, commitment, and quality workmanship to each new home it builds today.

Standard Pacific is one of the nation's largest and most successful homebuilding companies with shares traded on the New York Stock Exchange. They take pride in having created more than 94,000 homes in California, Florida, Arizona, the Carolinas, Texas, Colorado and Nevada over the past four decades.

Suncrest HomesWhen Suncrest Homes was formed in 1996, the goal was to build high quality homes with top of the line appointments and amenities on outstanding home sites in desirable cities, at a reasonable price.

Warmington HomesThere currently are more than 28 new home neighborhoods built by Warmington Homes California and Warmington Homes Nevada, it is estimated that approximately 30,000 families live in a Warmington home. It is interesting to note that in the areas where Warmington builds, it is not uncommon to pick up a newspaper and find resale homes boasting the Warmington name as a major selling point. The Warmington Group has solidified it's reputation as the premier builder of innovatively designed and well constructed homes in various price ranges to meet the needs of a wide variety of buyers.

Lyon HomesToday, with more than 100,000 new homes built, William Lyon Homes, Inc. is recognized as one of the nation's largest homebuilders. They are also among the most respected. The company has garnered many of the building industry's highest accolades including awards from Professional Builder magazine and the California Building Industry Association.

Caresco Homes is a local family builder based in Stockton, California, known for their integrity, reliability and creating homes of distinctive style and superior design. For over two decades, owners Mike and Doug Carruesco have perfected the skills necessary to produce quality homes. Because they understand the needs of today’s home buyer, they take a hands-on approach to every design detail, creating functional elegance and timeless architectural character.

Matthews Homes recognizes that purchasing a new home remains one of the most important decisions you will make in a lifetime. Based in Stockton, Matthews Homes has spent over two decades committed to building homes and communities of lasting beauty, quality and value.

John Lange Homes Their roots in homebuilding date back to 1848, when James Laing, John's father, built his first home in the English countryside. After becoming one of Great Britain's most respected builders, John Laing Homes entered the United States market in 1984. WL Homes LLC was formed in April 1998 when John Laing Homes merged with Watt Homes, becoming one of nation's largest homebuilders.

Stone Homes Merrill’s oldest son Gary started working for his father at age 12 and in 1965 started working for a major builder in the Bay Area, managing construction on numerous projects. By 1973, Gary had started building on his own. In North Stockton, he has built all of the Stonewood subdivisions and has built in Spanos East and Spanos West, which have built up a great reputation for quality and affordability.

Home Builders in Escalon, Lathrop, Lockeford, Lodi, Manteca, Ripon, Stockton, Tracy, and San Joaquin Communities

Anderson Homes • Arnaiz Development Co • Atherton HomesAward HomesBeck PropertiesBennett HomesBright HomesCalifornia HomesCaresco HomesCentex HomesChristopherson HomesD. R. HortonDunmore HomesFitzpatrick HomesFlorsheim HomesFrontier HomesGrover Custom BuildersHofmann Company, TheJonathan HomesJohn Laing HomesKB HomesKimball Hill HomesKiper HomesLafferty HomesLakemont HomesLennar HomesMeadowlandsMatthews HomesMeritage HomesMorrison HomesNew America HomesNova Development GroupPacific Mountain PartnersPacific Pride CommunitiesPacific Union HomesParamont HomesParksideParkview VillasPrivate Island HomesPulte HomesRaymusReynen & BardisRichmond AmericaRyland HomesSCM Homes of CaliforniaSeeno HomesShea HomesSilveira General ConstructionStandard Pacific HomesStone HomesSutco ConstructionSyncon Homes of CaliforniaWarmington HomesWilliam Lyon HomesWoodside Homes

Notable developers

  • Candy & Candy
  • Gerald D. Hines
  • Bellway
  • Cheung Kong Group
  • Delfin Lend Lease
  • DLF Universal
  • Donald Trump
  • Emaar Properties
  • Harry Helmsley, deceased husband of Leona Helmsley
  • Harry Triguboff
  • James Rouse
  • John Portman
  • Microsoft founder, Paul Allen
  • Mirvac
  • Olympia and York
  • Ryan Companies US, Inc.
  • Sino Group
  • Sun Hung Kai Properties
  • Tishman Speyer
  • Trammell Crow
  • William Levitt
  • Alfred Taubman
  • Sir Alan Sugar
  • Bluegreen Communities
  • John Vartan

Top real estate development companies by market capitalization

The examples and perspective in this section deal primarily with North America and do not represent a worldwide view of the subject. Please improve this article or discuss the issue on the talk page. (April 2009) The top companies by market capitalization in the real estate development industry, as of 29 April 2009, are given below.
  • Company Exchange Ticker Cap ($)
  • St. Joe Company NYSE JOE 2.24B
  • IRSA Inversiones Y Representaciones S.A. NYSE IRS 226M
  • Consolidated-Tomoka Land AMEX CTO 199M
  • AMREP NYSE AXR 108M
  • Stratus Properties NASDQA STRS 74M
  • Bluegreen NYSE BXG 67M
  • ZipRealty NASDQA ZIPR 56M

External links

  • Crenex.com - The Largest Commercial RE Info Portal on Web
  • The Urban Land Institute - A professional association for real estate developers and related professions
  • National Real Estate Investor magazine
  • NAIOP - NAIOP, the Commercial Real Estate Development Association, is a leading resource for information, access and advocacy that supports the advancement of sustainable commercial real estate development.

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