Real Estate Development October 6, 2022

Four Types of Lucrative Real Estate Developments and How to Get Started

Multi-Unit Buildings

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Real estate development can be a personally and professionally fulfilling path. In addition to the potential profits you stand to gain, you can enjoy the satisfaction of watching raw land evolve into a useful structure. Of course, some structures are more useful than others, and you want to be sure that you invest your effort into a development that will be lucrative.

Find your dream property with realtor Paul Burrowes. Schedule a consultation!

Top Residential and Commercial Development Types

  1. Retail space. According to experts, it’s expected that 25% of malls remaining in the U.S. will close in the next few years. Contrary to the picture this may paint, though, brick-and-mortar retail is alive and well. Developers should research open-concept structures that are increasingly popular.
  2. Apartment complexes. An apartment complex is generally defined as any structure that contains four or more residential units. Some complexes are massive, though, with sprawling streets and hundreds of units. No matter how big your complex is, you can make major profits by renting out units or selling the structure to an investor.
  3. Warehouse facilities. A warehouse facility is a comparatively simple structure to develop. If you’re looking for a way to build a large-scale structure and make big profits, this is it. According to statistics, the average monthly rent for a warehouse is $0.85 per square foot. Though this is typically less than a residential property, it would likely cost less to construct.
  4. Storage units. Never underestimate the need for storage space. People everywhere need more storage, and real estate developers are in a prime position to meet this need. This type of development is also one of the cheapest to invest in, which means that profit margins may be greater.

How to Become a Real Estate Developer

Before you consider the best developments for your portfolio, you should ensure that you have what it takes to succeed as a real estate developer. You may need to complete an educational program or get licensed depending on the state you are located in. You may also need to develop your ability to pick a promising piece of land.

Partnering with professionals such as builders, engineers, and contractors can help you bring your vision to fruition. At some point, you may find that your development business has grown to the point where it makes sense to bring some contracting or construction functions in house.

Keep Your Developments Safe With the Right Lighting

Regardless of what kind of development you choose to construct, you should invest in its safety by installing ample lighting. A structure that’s poorly lit could be at an increased risk of criminal activity so illuminate parking garages and areas with proper lighting. In addition to minimizing the risk of crime, the right lighting can make it easier for drivers to see in areas with tunnels. If any pedestrians are walking in the garage, lighting will protect them from being struck, too. Various options are available—look for lighting that maximizes area coverage while providing energy efficiency.

Find the Right Development for Your Portfolio

Choosing the right type of development is just as important as choosing the right piece of land. Both can be a challenge, though, even for the most experienced real estate developer. Invest in lighting for your properties and work with local professionals for your work. With patience, diligence, and hard work, you can build a real estate company to be proud of.

Find your dream property with realtor Paul Burrowes. Schedule a consultation!