21/09/2022
You will need to underwrite your land development expenses when working on your real estate development project, whether it be for a stand-alone land project or when evaluating the land component of a new build apartment project. The method for calculating the cost of land development for every specific project is described below.
Fundamentally, I am aware that these land development expenses are constant across all markets and across time:
Land
wet and dry underground utilities
grading in bulk
roads, sidewalks, gutters, and signs
Drainage, including the construction of detention/retention basins, spillways, and/or structures for subsurface drainage (usually under the street).
Land-related development impact fees
Fees:
parking costs
traffic fees
District or drainage basin fees
District or water basin fees
Design and engineering costs
Plan check fees for your final plat map and engineering plans
Planning application fees if processing a zone change or general plan amendment
Environmental studies, investigate endangered animals and plans
Phase I, II, and III environmental studies, i.e. toxic and environmentally impact soils conditions.
