Development due diligence
Development due diligence
Make sure your development or redevelopment play makes sense
Acquisition of land for development, or an improved asset with the intent to redevelop – should always be preceded by a thorough development due diligence process. This ensures you have a complete and transparent view of all the risks, but also the opportunities.
Questions you might have and answers you need, include:
- Is this the development / redevelopment play with the highest potential return?
- What’s the likelihood of my development application being approved?
- What impact will this development / redevelopment have on the municipality and its economy?
- Are there zoning bylaws or restrictions that I need to be aware of?
- Will the municipality require a fiscal impact study when I submit my development application? (If so, what will that look like?)
- How should I budget for this development? Is there a way to understand the implications of different scenarios like an increase in development costs?
- Am I eligible for any tax grants, credits or incentives? How will my property taxes be affected by this development / redevelopment?
Optimize development value and profitability to get a robust return on your investment
No two developments or acquisitions are alike, but when you can draw insights from the past – it will give you the edge you need. Be prepared for the development application process by having a clear understanding of budget and expenses and be ready to execute on an exit strategy should the economic picture change.
Our development due diligence services include:
- Feasibility studies
- Highest and best use studies
- Project strategy and contract planning
- Budgeting and cost estimating
- Pro forma scenario and sensitivity analysis
- Fiscal and economic impact studies
- Eligibility for tax grants, credits and incentives
- Repositioning and rezoning costs
- Benchmark schedule analysis and master scheduling
We work with developers, associations, investors, and government organizations across Canada to provide:
- Market intelligence, backed by current and historical data & analytics
- Critical research and analysis of municipal finance issues
- Sophisticated understanding and approach to demographic and macroeconomic drivers of a successful development
- Timely, accurate, and trusted delivery of reports needed to fulfil on development applications
- Assistance during post-acquisition when you are working your way through the complicated development application process
- Transparent view and confidence in the feasibility of the development / redevelopment
- One-stop shop for all of your due diligence needs, including financial, physical and development due diligence
Economic advisory & market research
Understand the viability of your next real estate project with custom research.
Physical due diligence
When buying a commercial asset, it’s important to have the property’s condition physically inspected and assessed from a financial risk perspective.
Litigation & dispute valuation
Have a property dispute? Obtain a commercial valuation for litigation, arbitration and dispute resolutions.
Financial due diligence
The financial insight and transparency you need to avoid misinformed acquisitions.
Assess the market conditions affecting the demand and supply of a local commercial real estate market.
Market feasibility studies
Understand the economic viability of your development by looking at the local market forces at play.
Contact a qualified professional
Our multi-disciplinary team of professionals brings a wealth of industry experience and unparalleled data-driven insights, providing the clarity you need to make informed decisions.
Our workView All
Altus Group supported the owners in pre-sale due diligence, to understand the redevelopment potential and resale value of their Category B heritage property, Jarvis House, at 1067 Yonge St.
As good as gold: opportunities for institutions to extract land value through strategic redevelopment
Jan 28, 2019
As land values climb and structures wear out, rather than simply selling their property and bidding goodbye to their buildings and land forever, more and more institutional administrators and boards would like to determine whether a redevelopment partnership may be possible to safeguard their future.
How can I optimize the value of my property?
Apr 23, 2020
Property owners, property managers, and asset managers are faced with an endless number of decisions relating to the ongoing operation of real estate assets. Occasionally the question ‘What should I do with the property’ arises.
Put pro formas to work to understand and manage development risks and protect your profits
Aug 14, 2019
Rising land values and construction costs in the real estate market over the past several years are raising risks for developers, lenders and equity investors. This precarious situation requires a new approach for understanding and managing development risk – an approach with pro formas as the focus.
Three questions to keep in mind when securing a commercial appraisal
Nov 29, 2018
Having a reliable, top quality commercial appraisal puts power in your hands. It clarifies and enhances information, reduces risk and ultimately contributes to successfully completing a wide range of real estate transactions. When renewing a mortgage on a property for example, with a timely, accurate appraisal in hand, a borrower can negotiate with a variety of lenders for the best financing terms.
Re-purposing heritage structures: where do we go from here?
Nov 13, 2017
The process of taking a historic building which has reached the end of its economic life (and which invariably has suffered much physical and functional depreciation), converting it to a new viable use, meeting all building code and provincial/municipal regulations whilst at the same time retaining key heritage features, is quite a daunting task both for developers, owner-occupiers and non-profits alike.
Retail in St. John’s: how to make sense of building more shops in a sagging economy
Mar 27, 2017
In 1995, the majority of retail was represented in enclosed malls followed by neighbourhood strip centers until the introduction of the first power center in the mid 1990’s. Over the past twenty years, the vast majority of growth in retail has occurred through the development and growth of power center locations.
2018 Canadian Cost Guide is now available
Jan 15, 2018
Download Altus Group’s 2018 Cost Guide - the Canadian real estate industry’s leading guide to development project costing.
Your CRE asset value during coronavirus: 4 steps to mitigate risks
Apr 15, 2020
What owners, managers and investors can do to mitigate risks on CRE assets during the COVID-19 market disruption.
It’s an optimal time for converting hotel assets to multi-family
Jul 2, 2020
This is an optimal time for hotel owner-operators to determine if your properties are positioned to be winners in the marketplace that will emerge – or whether an alternative use for these assets, such as conversion to multi-family housing, might be a more financially rewarding option.
Construction cost escalation – not all sectors and trades change at the same pace
Aug 31, 2020
It’s very common for developers, contractors and consultants to estimate construction cost escalation, for all asset types and trades, based on a single number or range. This is dangerous and can lead to grossly inaccurate development budgets and forecasts, and more time (and money) spent on contingency plans down the road.
Need help with more services?
Connect with us and learn how we can help you see opportunities and maximize the value of your investments.