Ground-up Commercial Real Estate Process
If you haven’t heard the term ‘ground-up development’, it is a term known in commercial real estate, and relates to the construction process for a new commercial building. In other words, it outlines the complete process required to take raw undeveloped land and develop it into usable real estate property. In some cases, ground-up development also refers to a major renovation project, in which contractors would completely rebuild various components of a given structure, while leaving other major components intact.
Process of ground-up development
As most commercial real estate brokers can tell you, Colorado commercial real estate development requires specific tasks and actions to be completed when developing from scratch. Below is a list of tasks involved in the development process:
- site selection and evaluation
- site investigation and feasibility study
- development of reports for lenders
- preliminary budgets
- contract signing
- hiring contractors
- municipality submission and review
- city entitlement process
- preparation of construction plans
- final budget
- acquisition of building permits
- construction phase
- interior work
- construction close-out
Choosing between renovations or building
When real estate brokers and developers are choosing between property renovation and ground-up development, the renovation option will frequently cost significantly less than ground-up development. It usually takes less time, requires fewer permits, and reduces overall building activity.
Still, there are many reasons to opt for development, which provides nearly unlimited flexibility. Another advantage: you can approach your building project in distinct and separate phases. This can be advantageous if you’re going through seasonal construction, or if you don’t have full funding for the project.
Working with Tower Realty Partners
Tower Realty Partners specializes in finding and negotiating commercial real estate for healthcare providers in Colorado, including dental, medical and veterinary services. Tower’s expert brokers will help you determine the best real estate option for your business and manage all aspects of the process. Contact us today to start your commercial real estate transaction.