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