Summary: How do off-site enhancements affect your project? Off-site upgrades have drawbacks, yet they’re a crucial component of commercial real estate development.
Four of the most frequent off-site enhancements in commercial real estate development were broken down in one of our most recent posts. Access roads, walkways, and curbs are additional site improvements frequently needed to increase the value and legitimacy of your commercial project.
After looking at some of the most common off-site jobs, let’s now look at how these off-site improvements effect your project as a whole.
- Influence One’s Capacity To Acquire Permits
Before approving a development project, local governments often place restrictions on commercial developers and property owners. Municipalities see this as a means to meet infrastructure needs without taxing the populace or burdening taxpayers.
- Impact The Schedule And Overall Budget
Any activity outside the scope of the particular site development will increase project costs and duration. Off-site enhancements can significantly increase the cost of your projects, as was explained in the instances of common problems. These can add weeks to months to the timeline for your project depending on the nature of the work and the surrounding circumstances, and they frequently need the approval of various government bodies.
- Increases The Overall Worth Of The Development Project
On the plus side, adding infrastructure to your project ultimately offers value even though it frequently increases expenses and duration. Knowing that most work is intended to improve the homes nearby usually mitigates any difficulties that may arise from off-site upgrades. This work should, in theory, prevent problems in the future and, once built, provide equity and value for a long-term investor.
Off-site renovations have disadvantages, but they are a crucial component of successfully completing development projects in the commercial real estate industry.
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