What NOT TO DO in Commercial Real Estate Development

When it comes to commercial real estate & development, it is imperative to know what TO DO and what NOT TO DO. There are many phases in the project life cycle that may be uncertain to you, whereas an experienced developer should have experience in ALL stages of project completion. This includes early location sourcing, planning, project development, design-build, construction, and closeout.

Below is a list of imperative do’s and don’ts for successfully building commercial real estate development projects.


  • DO NOT begin a project without a clear, concise vision and scope of work in place.
  • DO NOT engage a real estate company that is not an expert in your product type or not familiar with commercial real estate best practices.
  • DO NOT agree to shorter than a 30-day due diligence and underwriting period to perform a thorough examination of all the documents and property conditions.
  • DO NOT select a design team that is not familiar with your project type.
  • DO NOT select your contractor based on the lowest price.
  • If this is not your core business, DO NOT try to manage this complex process yourself.

What TO DO

  • DO ensure you conduct thorough due diligence.
  • DO research your current market insights in depth so you are up to date with your targeted geographic areas.
  • DO evaluate your options to see what would be most profitable.
  • DO obtain an appropriate pre-approval amount from a lender and add contingency for future unknowns.
  • DO invest in a professional design and architectural team that specializes in your specific product type. This is to help avoid missing critical requirements that will need costly site plan revisions down the lines.
  • DO verify you have fulfilled all municipal requirements, entitlements, and codes before beginning the permitting process.
  • DO pre-qualify the design and construction teams to ensure they utilize innovative construction methods and energy efficient strategies.
  • DO have your project led by an experienced developer as this is a solid defense to solve any problems that come your way!
  • DO ensure you have done your research, built a relationship, and ultimately trust your development team.

Why SCGWest is Here For All of Your Needs

SCGWest strategically identifies, negotiates, and acquires new locations whether leases, purchases, or build to suit opportunities. We ensure our vendors have been thoroughly qualified and are experts in their particular field.  We turn our client’s vision into a reality. Therefore, next time you are looking into a new commercial development project, know that SCGWest is here to handle all of your development needs every step of the way!

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