- All
- Land Development
Powered by AI and the LinkedIn community
1
Market volatility
2
Legal and regulatory compliance
3
Environmental and social impacts
Be the first to add your personal experience
4
Technical and operational difficulties
Be the first to add your personal experience
5
Financial and contractual risks
Land development is a complex and dynamic process that involves acquiring, planning, designing, financing, constructing, and selling land for various purposes, such as residential, commercial, industrial, or recreational use. Land developers are responsible for transforming raw land into valuable and functional properties that meet the needs and preferences of their target markets and stakeholders. However, land development also entails various risks and challenges that can affect the feasibility, profitability, and sustainability of the projects. In this article, we will explore some of the key risks and challenges that land developers face in the current and future scenarios, and how they can mitigate and overcome them.
Top experts in this article
Selected by the community from 3 contributions. Learn more
Earn a Community Top Voice badge
Add to collaborative articles to get recognized for your expertise on your profile. Learn more
- Michael Du Principal at WPE Engineering Ltd. 14
- 2
- Dan Cornelison Child care ownership and on-site-management. Abstract and title. Residential and Commercial RE Development; Retired… 1
1 Market volatility
One of the most significant risks that land developers face is the uncertainty and fluctuation of the real estate market. Demand and supply, prices and costs, interest rates and financing options, regulations and policies, consumer preferences and trends, and environmental and social factors can all change rapidly and unpredictably, affecting the viability and competitiveness of the land development projects. To cope with market volatility, land developers need to conduct thorough market research and analysis, adopt flexible and adaptive strategies, diversify their portfolio and revenue streams, and maintain good relationships with their customers, partners, and regulators.
Help others by sharing more (125 characters min.)
-
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
The current land risk is in the impulsive and erratic behavior of municipalities. Architectural standards are being incorporated into zoning and development code. The impact will be $50,000-$80,000 per house. This will be passed directly to the consumer who never asked for changes in the architectural standards.
UnhelpfulLike Like Celebrate Support Love Insightful Funny 2
2 Legal and regulatory compliance
Another major challenge that land developers face is the complex and evolving legal and regulatory framework that governs land use, development, and management. Land developers have to comply with various laws and regulations at the local, state, and federal levels, such as zoning and planning, environmental and heritage protection, building and safety codes, taxation and incentives, and dispute resolution and litigation. Non-compliance can result in delays, fines, penalties, lawsuits, and reputational damage. To ensure legal and regulatory compliance, land developers need to consult with qualified and experienced professionals, such as lawyers, planners, engineers, surveyors, and accountants, and keep abreast of the latest changes and updates in the relevant legislation and policies.
Help others by sharing more (125 characters min.)
- Michael Du Principal at WPE Engineering Ltd.
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
In my experience, the frustration that most land developers are facing includes:- Ever changing municipal design criteria and policies;- uncertainty in the schedule of municipal infrastructure upgrades;- Inconsistencies in the requirements between different review agencies;- Frequent changes of review staff.
UnhelpfulLike Like Celebrate Support Love Insightful Funny
3 Environmental and social impacts
Land development also involves significant environmental and social impacts that can pose risks and challenges for the land developers and the communities they serve. Land development can affect the natural resources, ecosystems, biodiversity, climate, and landscape of the land, as well as the health, safety, well-being, culture, and identity of the people who live and work on or near the land. Land developers have to balance the economic, environmental, and social aspects of their projects, and address the potential negative impacts and conflicts that may arise from their activities. To achieve environmental and social sustainability, land developers need to adopt best practices and standards, such as green building, energy efficiency, water conservation, waste management, social inclusion, community engagement, and stakeholder participation.
Help others by sharing more (125 characters min.)
4 Technical and operational difficulties
Land development also requires a high level of technical and operational expertise and coordination, as it involves multiple disciplines, stages, tasks, and stakeholders. Land developers have to deal with various technical and operational difficulties that can affect the quality, cost, and time of their projects, such as site selection and acquisition, feasibility and risk assessment, design and engineering, permitting and approval, construction and delivery, marketing and sales, and maintenance and management. To overcome technical and operational difficulties, land developers need to hire and retain skilled and qualified staff and contractors, use appropriate and innovative technologies and tools, establish clear and effective communication and collaboration channels, and monitor and control the performance and progress of their projects.
Help others by sharing more (125 characters min.)
5 Financial and contractual risks
Finally, land development also entails substantial financial and contractual risks that can jeopardize the profitability and solvency of the land developers and their projects. Land development requires a large amount of capital investment and debt financing, which exposes the land developers to the risk of insufficient or delayed funding, cash flow problems, cost overruns, default or foreclosure, and loss of equity or ownership. Land development also involves various contracts and agreements with different parties, such as landowners, lenders, investors, contractors, suppliers, customers, and regulators, which exposes the land developers to the risk of breach, dispute, liability, or termination. To manage financial and contractual risks, land developers need to prepare realistic and prudent budgets and forecasts, secure reliable and diversified sources of funding, negotiate fair and favorable terms and conditions, enforce contractual rights and obligations, and hedge or insure against potential losses or damages.
Help others by sharing more (125 characters min.)
- Dan Cornelison Child care ownership and on-site-management. Abstract and title. Residential and Commercial RE Development; Retired corporate executive and general counsel; Golfer, saltwater fly fishing, bird dogs/upland bird/bow hunter
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Inflation and increasing interest rates are the two biggest risks to a developer; when the market slows down and consumers quit buying lots the developer can face dire consequences if not very well capitalized. In 2007-09 we saw many real estate developers file for bankruptcy when the market came to an abrupt halt, especially exacerbated by lenders chasing development deals and structuring highly leveraged development projects.
UnhelpfulLike Like Celebrate Support Love Insightful Funny 1
Land Development
Land Development
+ Follow
Rate this article
We created this article with the help of AI. What do you think of it?
It’s great It’s not so great
Thanks for your feedback
Your feedback is private. Like or react to bring the conversation to your network.
Tell us more
Tell us why you didn’t like this article.
If you think something in this article goes against our Professional Community Policies, please let us know.
We appreciate you letting us know. Though we’re unable to respond directly, your feedback helps us improve this experience for everyone.
If you think this goes against our Professional Community Policies, please let us know.
More articles on Land Development
No more previous content
- What are some best practices for creating a project budget? 8 contributions
- How do you monitor and evaluate the progress and outcomes of your land development financing? 1 contribution
- What are some pros and cons of green infrastructure and low-impact development? 2 contributions
- How do you integrate environmental and social considerations into your cost estimation and budgeting process?
- How do you foster trust and collaboration among your stakeholders and build long-term relationships? 2 contributions
- How do you create a walkable site that integrates with the community? 3 contributions
- How do you keep your land development skills and knowledge up to date and relevant? 5 contributions
- What are the best BMPs for reducing runoff and improving water quality in urban areas? 7 contributions
No more next content
More relevant reading
- Geomatics How do cadastral systems support land administration and governance?
- Environmental Engineering How can you finance soil and groundwater remediation projects?
- Real Estate Development What are the most important industry standards for surveying a property?
- Corporate Real Estate What are the most effective due diligence practices for real estate transactions?
Help improve contributions
Mark contributions as unhelpful if you find them irrelevant or not valuable to the article. This feedback is private to you and won’t be shared publicly.
Contribution hidden for you
This feedback is never shared publicly, we’ll use it to show better contributions to everyone.
