This document outlines the three main stages of real estate development: pre-development, construction, and operation. The pre-development stage focuses on due diligence, permitting, and arranging financing, and carries the greatest risks due to unknowns. The construction stage involves vertical construction and drawing on financing. Finally, the operation stage occurs after risks are reduced, and involves obtaining tenants, ongoing marketing and leasing, and property management. Real estate development provides an opportunity for lucrative investment but requires understanding the risks associated with each stage of the process.

1. M A R K E T I N G P R O P O S A L
W H A T I S R E A L
E S T A T E
D E V E L O P M E N T ?
L E S T E R P A R R I S
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2. L E S T E R P A R R I S . C O M
I N T R O D U C T I O N
Real Estate development is a multi-step process that can be
confusing, lengthy, and complicated. If you are new to this realm,
there can be many obstacles that get in your way. For example, it
can take years to bring a project from the initial planning stage
through construction to final completion stage. These projects
when it comes to real estate can be a highly lucrative investment
opportunity.
The overall scope of real estate development projects provides a
product that does not currently exist in a market. Often providing
the fresh new supply to please pent-up market demand. This can
translate into a runaway success story, only when executed well.
This is something that is pretty impossible to do with an existing
asset. By better understanding the “life cycle” of a development
project, investors can more confidently assess some of the risks
associated with construction.

3. L E S T E R P A R R I S . C O M
P R E -
D E V E L O P M E N T
This is the early stage of a project and it focuses on due diligence,
research and permitting. This stage is usually the most variable in
duration. When you invest in this stage, it carries the greatest and
most varied risks because there are many unknowns. Some
common steps included in this stage are:
Surveys
Permitting
Arranging construction financing
Environmental assessments
Site plans, development plans, and building plans

4. L E S T E R P A R R I S . C O M
C O N S T R U C T I O N
Or otherwise known as the middle stage. The
middle stage involves the improvements. After
the pre-development tasks have been taken
care of, the project risks at this stage are greatly
reduced but still exist. Some steps included in
this stage are:
Pre-leasing
Vertical construction
Drawing on construction financing
Project marketing

5. L E S T E R P A R R I S . C O M
O P E R A T I O N
Otherwise known as the final stage. The final
stage of the development process, operation, is
the first stage of the building’s life. After
conclusion of the pre-development and
construction risks may be removed by this
point. The next step is obtaining tenants and is
still as risk. Some steps included in this stage
are:
Finding a buyer
Ongoing marketing and leasing
Achieving stabilization
Ramping up property management

6. L E S T E R P A R R I S . C O M
T H A N K Y O U !
F O R M O R E I N F O R M A T I O N P L E A S E V I S I T
L E S T E R P A R R I S . C O M