The conceptual phase is where a developer’s intellectual ideas meet pencil and paper. The developer compounds through a series of thought processes on a piece of land for a desired development. This may include vacant land or large parcels with aged-buildings which can be demolished.
Once a prospective parcel of land or potential tear-down possibility is discovered, a developer will then determine the purpose the land would be built for, possible designs of the project, what legal entitlements are required for such a project design, as well as the short and long-term strategies for holding such an investment.
Feasibility studies are carried out to determine whether a particular development project will be successful. Several factors which are taken into consideration in such a study include the existing walk score, pedestrian foot traffic, funding requirements, the financial input and the return of investment, estimated constructions costs, the environmental impact report requirements and governmental regulations.
This helps a developer to avoid making wrong decisions about investing in a parcel of land. In fact, many developers of large scale projects conduct feasibility studies before land acquisition and development to determine the impact a project may bring into a community.
