Real Estate Development Matrix

A Multi-Disciplinary Project

The real estate development process is organized around a 56-cell, stage-task matrix, which describes the entire real estate development process in seven stages from the land banking stage to the redevelopment stage. In each stage, there are eight categories of tasks that need to be addressed. The main thesis of this interdisciplinary development model is that there are discrete stages in the process, and in each stage the real estate developer must (1) complete different tasks using specialized skills and thereby accepting certain risks and (2) employ various capital structures with different risk-return characteristics to create or "capture" the value increase in that stage. The seven stages in the model are: land banking, land packaging, land development, building development, building operation, building renovation, and site redevelopment. Each stage in the process begins with the acquisition tasks and ends with the disposition tasks. Each stage must also address, to some extent, the following categories of tasks (many of which are done simultaneously): financing, market research, approvals, environmental, improvement construction, and transportation and accessibility concerns. As with all real world applications of conceptual models, the lines separating the stages and the categories are fuzzy.

The Development Matrix can be used as a descriptive, normative, or predictive model. As a pedagogical tool, the Development matrix can help the student understand the process, risks, and value creation in real estate development. For more information click a matrix cell below. Click here for information Using the matrix.

1 Land Banking 2 Land Packaging 3 Land Development 4 Building Development 5 Building Operations 6 Building Renovation 7 Property Redevelopment
I Acquisition I.1
Land Banking
Acquisition
I.2
Land Packaging
Acquisition
I.3
Land Development
Acquisition
I.4
Building Development
Acquisition
I.5
Building Operations
Acquisition
I.6
Building Renovation
Acquisition
I.7
Property Redevelopment
Acquisition
II Financing II.1
Land Banking
Financing
II.2
Land Packaging
Financing
II.3
Land Development
Financing
II.4
Building Development
Financing
II.5
Building Operations
Financing
II.6
Building Renovation
Financing
II.7
Property Redevelopment
Financing
III Market Analysis and Strategies III.1
Land Banking
Market Studies and Marketing Strategies
III.2
Land Packaging
Market Studies and Marketing Strategies
III.3
Land Development
Market Studies and Marketing Strategies
III.4
Building Development
Market Studies and Marketing Strategies
III.5
Building Operations
Market Studies and Marketing Strategies
III.6
Building Renovation
Market Studies and Marketing Strategies
III.7
Property Redevelopment
Market Studies and Marketing Strategies
IV Environmental IV.1
Land Banking
Environmental
IV.2
Land Packaging
Environmental
IV.3
Land Development
Environmental
IV.4
Building Development
Environmental
IV.5
Building Operations
Environmental
IV.6
Building Renovation
Environmental
IV.7
Property Redevelopment
Environmental
V Approvals and Permits V.1
Land Banking
Approvals and Permits
V.2
Land Packaging
Approvals and Permits
V.3
Land Development
Approvals and Permits
V.4
Building Development
Approvals and Permits
V.5
Building Operations
Approvals and Permits
V.6
Building Renovation
Approvals and Permits
V.7
Property Redevelopment
Approvals and Permits
VI Physical Improvements VI.1
Land Banking
Physical Improvements
VI.2
Land Packaging
Physical Improvements
VI.3
Land Development
Physical Improvements
VI.4
Building Development
Physical Improvements
VI.5
Building Operations
Physical Improvements
VI.6
Building Renovation
Physical Improvements
VI.7
Property Redevelopment
Physical Improvements
VII Transportation and Accessibility VII.1
Land Banking
Transportation and Accessibility
VII.2
Land Packaging
Transportation and Accessibility
VII.3
Land Development
Transportation and Accessibility
VII.4
Building Development
Transportation and Accessibility
VII.5
Building Operations
Transportation and Accessibility
VII.6
Building Renovation
Transportation and Accessibility
VII.7
Property Redevelopment
Transportation and Accessibility
VIII Sales and Disposition VIII.1
Land Banking
Sales and Disposition
VIII.2
Land Packaging
Sales and Disposition
VIII.3
Land Development
Sales and Disposition
VIII.4
Building Development
Sales and Disposition
VIII.5
Building Operations
Sales and Disposition
VIII.6
Building Renovation
Sales and Disposition
VIII.7
Property Redevelopment
Sales and Disposition