The Challenges of Real Estate Development & Scalability
by Jeff Tarris
In the world of real estate development, opportunities for growth abound. However, like any other business endeavor, the path to success comes with its share of hurdles, complicating your ability to scale as quickly as you’d prefer. JCW Development has been there, done that, and can help guide you along the way.
Some of the challenges we regularly encounter with clients looking to grow and expand include:
Lack of Expertise
Your company or institution may not have the experience or the know-how to successfully develop and construct your own real estate projects. And why should you? Your expertise lies in your own business, not in real estate development or construction.
Team members at JCW Development and our affiliate company, WDS Construction, have honed our skills over the course of decades. We are able to step in and handle all aspects of your project, allowing you to focus on your core responsibilities while acting as an extension of your organization.
Capital Constraints
Allocating capital to areas outside of your core competency can seem risky. Why add staff that doesn’t contribute to your primary operations? This is especially relevant if you are not involved daily in real estate development.
With JCW Development, we collaborate with clients on a project-by-project basis, eliminating the need for dedicated, in-house staff. Additionally, this third-party expense may often be capitalized and depreciated with the project cost, offering potential tax benefits. Plus, JCW Development can manage all aspects of the project, from financing and design to permitting and construction, offering a true turn-key solution.
Lack of a Professional Network
Building a strong network of professionals within the real estate development industry can take extensive time and a robust effort, taking you away from your core focus. Your network needs to include architects and engineers, banks and equity sources, construction firms and subcontractors, regulatory agencies, vendors, and much more. Where do you even start – particularly when you are looking to grow into new areas?
With JCW and our national network of contacts, you gain instant access to real estate market experts, architects and engineers, contractors and subcontractors, all across the United States. By leveraging our network, it becomes possible to expedite and scale more rapidly.
Maintaining Design Consistency and Standards
If you manage a brand with established guidelines and standards, maintaining these across different locations can be tricky – different companies, different consultants, and different team members. You’ve spent years building a strong brand in the marketplace, and it is critical that expansion and growth do not dilute this brand.
JCW Development and our affiliate WDS Construction have a deep resume of experience working with national brands known for their consistent standards, including Dick’s Sporting Goods, BioLife Medical, Dave and Busters, Petco, McDonald’s, FedEx Ground, and more. We understand and embrace the nuances of maintaining brand consistency while adapting to site-specific constraints.
Trust
Trust is a cornerstone of any successful business partnership. You expect transparency in your dealings, not hidden costs or unexpected surprises.
When a relationship is built upon a foundation of trust, open communication, and transparency are hallmarks. Our commitment to trust and transparency allows you to better understand where your money is going, instead of constantly second-guessing how the dollars are being spent and whether or not you are paying hidden charges or fees.
Reliable Scheduling
Reliable scheduling is critical to your business operations. You need to know well in advance when your project will be ready so you can plan your staffing, marketing, and inventory management accordingly. A shiny-but-empty new building means no revenue or return on investment.
JCW and WDS understand the importance of having a reliable schedule and have the expertise to develop a realistic and dependable timetable, and more importantly, stick to it. You can trust us to deliver your project on time, every time.
Scaling in real estate development is a path riddled with challenges, but they don’t have to derail your growth. With the right partners and solutions, these obstacles can become stepping stones to greater success. At JCW, we’re development experts who begin with the end in mind. How can we successfully help you scale your business?
Reach out to me at jtarris@jcwdev.net to discuss your needs and how we can help you build your business.
