Making Decision

When the investor and developer have a face to make decision in the successful real estate development project, conceptual design, financial feasibility and implementation issues can be considered. Other risk factors of development are political and financial issues for current and future market condition. In the supply and demand relationship, financial assumption plan has potential risks in the current or future business market. Developer need to check the projected financial picture make sufficient profit under current maker demand. And with due diligence in current market value, developer evaluates how much tenants to spend on the rent. Well proposed energy efficient design attracts demands of the market income. clear design concept and financial allowance should be suggested with market analysis.

The risk analysis of the station redevelopment

In the real estate development project, both developer and investor face risk when they make decision. In the risk consideration of the development, market, location, political and financial issues should be considered in the proposed project. These factors affect developer to make sure in the development process for reducing potential risk after project is finished.
Market analysis - Will the supply and demand relationship be successful in that location? Many people pass through station. They are busy to meet the train schedule and their main purpose is transferring. Therefore, snack or fast-food that are easy to take from passengers and supporting them at the same time can bring profits.
Location and site analysis - Will the proposed energy efficient design improvement attract the site demand for the market income available? If city allows the private developments like mixed-used projects for residential and commercial buildings near the stations, station would be more attractive icon in that community, and it will work more efficiently as its main role for transportation and historical conservation.
Political and social environmental analysis - Business decision is integrated into the political and social effect. Station opens from early hours to late night. It has potential to be homeless shelter or potential crime site. Therefore, overly available rest area in the station would not work well with its function.
Financial analysis - Does the projected financial picture make sufficient profit? And with due diligence in current market value, does developer evaluates how much tenants to spend on the rent and how long they should make contract?
During pre-development, developer, investors and city officials reevaluate the design layout again under feasibility analysis. They may ask questions themselves such as what are pros and cons in the project for the best decision- each retail’s usage, location and size in the station, restaurant’s space and usage and office location. In the redevelopment project, existing limited space in the station would be obstacle for adding other program. Therefore for additional new program, if there are available space near the station, side development approach can be another strategy for success.

The turnaround strategy

As the city goes through the up and down of the economy, abandoned areas produce crimes and wasted spaces in the surrounding community. Sometimes Brownfield area redevelopment is more beneficial than new development because it provides economical savings by reusing existing infrastructure. When a development opportunity comes along for abandoned area, it will create sense of place and revive the community. The development is more compact and more independent on parking, and the infrastructure cost is less when the property value increases. In the urban city, Planning around transit station is commonly known as the transit oriented development. public street and walkway create public space integrated with the transit station and commercial spaces. The nature theme-oriented street for pedestrian provides citizens for resting area. People can park at public parking garage.
When there is an opportunity for redevelopment, the turnaround strategy focusing on environmental concerns will accomplish synergies for community, people and economy. The site use design concept within financial allowance is essential for this project to be successful.