The real estate development industry is a lot more dynamic and fast-moving than many realize. Sometimes considered a relatively sleepy business, modern real estate development is often actually anything but. As those who visit NRIA or a similar company online will see, leading real estate development companies today often adopt a vertically integrated approach that emphasizes agility and innovation.
Working Toward a More Modern, Flexible Take on Real Estate
Everyone needs somewhere to live, and businesses need plenty of buildings of their own. Strategically planned real estate is so fundamental to life in a highly developed country that it can paradoxically seem a bit prosaic.
It takes a great deal of hard work, though, to actually cater to the needs and preferences of people and companies who buy or rent real estate. In the past, many often felt that real estate investors, developers, and managers were less than successful at responding to their demands.
That is no longer so much the case, because more real estate companies have raised the bar for service. Doing so most often means bringing a number of functions under one roof in order to become better equipped to succeed.
Vertical Integration Pays Off Throughout the Real Estate Industry
It has become less common, for instance, to find real estate developers bouncing from one partner to another with every project. Instead, it is now much more the norm for a single company with development capabilities to also work directly with investors and to manage properties itself.
That allows for a much more strategic take on real estate that suits the modern environment better than the old one. Instead of having a necessarily fractured view of things, vertically integrated real estate developers can look at the big picture and respond effectively to what they see there.
A Better Way to Develop and Manage Real Estate
This approach has proved successful in quite of few of the most competitive and vibrant real estate markets in the United States. Companies that adopt a vertically integrated take on real estate typically do so by becoming equipped to handle:
- Investment. Securing the funding for a contemplated project is often the most challenging step of all. Not needing to look to an investment-focused partner for help will allow a real estate developer to respond to the market more quickly. Removing a middleman from the equation also ensures that more capital ends up being used for development.
- Development. It is always necessary today to plan and construct projects that suit particular markets very well. That takes a level of expertise which has not always been easy to come by. Real estate development companies that excel in this crucial respect find that buyers and tenants are always waiting.
- Management. Whether for securing more reliable tenants or making the most of a given investment, effective ok property management is almost always a key to the success of a development project. Companies that both manage and develop properties can minimize friction between the moving parts.
Excelling in these three respects can allow a real estate company to accomplish things that would previously have been inconceivable. A few companies nationwide are now demonstrating just how much of a difference successful vertical integration can make when it comes to real estate.
