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.
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 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
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
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.