Thinking About Building a Commercial Project?

Developing a commercial project—whether retail, industrial, office, or multifamily—comes with many moving parts. Before anyone puts a shovel in the ground, there are numerous factors that need to be carefully evaluated. Zoning, setback requirements, utility availability and capacity, traffic studies, fill requirements, and construction costs are just a few of the items that can influence whether a project ultimately succeeds or struggles.

In my opinion, however, one of the most important considerations is understanding the market.

Over my 50+ years in the Southwest Florida real estate industry, I have seen many projects where developers had great plans and built impressive buildings, but completely missed the market. Timing plays a significant role in development, but identifying the right product—and pricing it correctly—can be even more critical. Whether the finished space will be leased or sold, unrealistic expectations for rental rates or purchase pricing can derail even the most well-built project.

Sometimes the smallest design details can also affect the success of a property. Ceiling heights, hallway widths, door openings, restroom placement, and the number or size of loading doors may seem minor during the planning stage, but these details can significantly impact how attractive a space is to future tenants or buyers and how quickly it leases or sells.

Throughout my career, I’ve had the opportunity to work alongside many successful developers who understood the importance of assembling the right team. Architects, civil engineers, mechanical engineers, and general contractors are all essential. Equally important, however, is involving an experienced commercial real estate professional early in the process.

Too often, I have been brought into projects after design and permitting were completed, only to recommend changes to better match current market demand.

One developer I worked with said it best: “If we can’t lease or sell the product, nobody makes any money.”

If you are considering developing a commercial property—or building for your own business—make sure a knowledgeable commercial real estate professional is part of your team from the very beginning.

Loyd Robbins is a lifelong Sarasota resident with 53 years of experience in commercial real estate and business brokerage. Trusted advisor to owners navigating meaningful transitions.