Essentials of the Development Process On-demand Course

This survey course will examine the seven stages of a comprehensive real estate development model at an introductory level. This model begins with raw land in the land banking stage and continues through land packaging, land development, building development, and building operations. The model continues through the development process to include building renovations and property redevelopment. The life cycle of a real estate development is analyzed in terms of how value is created in each stage of development. Module One presents the theoretical context of this seven stage model, then starting with Module Two, successive sessions will examine each principle development stage by outlining how value is created, key players, critical tasks, controllable costs and major risks. Examples discussed in each stage will describe how to apply those principles to real world practices. Finally, a special skills section will be presented at the end of each module. These special skills will teach students how to perform basic calculations to estimate and analyze real estate values in order to better understand value creation throughout the real estate development process.

Learning Objectives

By the end of this course, students will be able to:

  • Define the seven stages of the real estate development process in terms of:
    - How value is created;
    - Key players;
    - Critical Tasks;
    - Controllable costs; and
    - Major Risks
  • Analyze one example of each stage.
  • Estimate overall property value, land value, mortgage value, and equity value using direct capitalization methodology.
  • Understand the relationships among value, income, and capitalization rates.

Tuition & Register

Payment for a NAIOP on-demand course entitles access for one person only to the course and all materials.

Course Tuition

Member TypeUSDCAD
Member$795$1,040
Nonmember$995$1,300
Developing Leader$595$780
Student Member$95$125
Student Nonmember$145$190


How to Register

  • Register online: Click on the green Register button. You will need to log in or create a free account in order to see the Register button.
  • Fax: Complete the registration form for US  or for Canada  and fax to 703-904-7003
  • Mail: Send check payments to: NAIOP, CL500060, PO Box 5007, Merrifield, VA 22116-5007
  • Register over the phone/questions: 800-666-6780

Confirmation

All registrations processed online receive an automatic order confirmation and receipt. If you register via fax, mail, or phone, a receipt must be requested by contacting education@naiop.org.

Login instructions to access the on-demand course are sent under separate cover . If you do not received the login instructions, please check your spam folder. If the login email is still not there, please contact the NAIOP Education Department.

Cancellation Policy

No refunds will be issued.

Key:

Complete
Failed
Available
Locked
EDPOD Module 1 Overview of the Development Process
Module 1 Overview of the Development Process Class Recording
Open to view video.
Open to view video. During this session, students will discuss what real estate developers are and what real estate developers do from several points of view. Students will also review various perspectives of real estate development from the writings of James A. Graaskamp. The discussion then moves to the seven-stage real estate development process using a schematic diagram, a box diagram and a venn diagram. The seven stage model is combined with the eight required tasks for each stage to define the real estate “Development Matrix.” This 56-cell matrix is analyzed to demonstrate how real estate developers and real estate professionals interact throughout the life cycle of a real estate project. The students will expand this two-dimensional model to include property types and thereby define a three-dimensional real estate “Development Cube.” At the end of this module, students will have a working knowledge of the development matrix.
Module 1 Overview of the Real Estate Development Process Presentation
Open to download resource.
Open to download resource.
EDPOD Module 2 Land Banking
Module 2 Land Banking Class Recording
Open to view video.
Open to view video. This session explores Land Banking, the first stage in the real estate development process, in terms of how value is created. Students will review the critical tasks, major risks, key players and controllable costs of this stage. Students will learn to identify land bankers and understand the role of land banking in its relation to other stages. Students will learn to understand the varied nuances of the term “value” in real estate and the difference between market and investment value. This module also demonstrates the three variable Direct Capitalization Model and compares it to the more complex Discounted Cash Flow Model. This course will utilize the Direct Capitalization Models to calculate and compare values throughout the real estate development process.
Module 2 Land Banking Presentation
Open to download resource.
Open to download resource.
EDPOD Module 3 Land Packaging
EDPOD Module 3 Land Packaging Class Recording
Open to view video.
Open to view video. This session explores the second stage of the real estate development process, Land Packaging. Students will review the critical tasks, major risks, key players and controllable costs of this stage. Students will identify the steps in the land packaging process and recognize the important roles of the numerous stakeholders required in this stage. Students will learn to calculate stabilized Net Operating Income (NOI) using gross income, vacancy and collections, and operating expenses. Students will also learn to estimate overall capitalization rates and understand the difference between market and investor’s rates. Estimating property value using the direct capitalization model will also be covered in this module.
Module 3 Land Packaging Presentation
Open to download resource.
Open to download resource.
EDPOD Module 4 Land Development
Module 4 Land Development Class Recording
Open to view video.
Open to view video. This session explores the Land Development stage. We will review the critical tasks, major risks, key players and controllable costs of this stage. Students will learn how value is created through constructing infrastructure needed for future building development. In order to better understand the relationship between land developers and building developers, students will learn to estimate building development costs. The special skills section will continue with a review of how to calculate land value, using those cost estimates.
Module 4 Land Development Presentation
Open to download resource.
Open to download resource.
EDPOD Module 5 Building Development
Module 5 Building Development Class Recording
Open to view video.
Open to view video. This session explores the Building Development stage. We will review the critical tasks, major risks, key players and controllable costs of this stage. The special skills section will focus on project feasibility by reviewing four components: 1) return on total costs compared to overall market capitalization rate 2) required spread as a measure of riskiness 3) the four step process to estimate a building developer’s justified land price 4) reviewing overall project feasibility with pessimistic, most likely and optimistic outcome predictions.
Module 5 Building Development Presentation
Open to download resource.
Open to download resource.
EDPOD Module 6 Building Operations
Module 6 Building Operations Class Recording
Open to view video.
Open to view video. This session explores the Building Operations stage. We will review the critical tasks, major risks, key players and controllable costs of this stage. The special skills section will instruct students how to estimate property value using a mortgage-equity analysis. This will be broken into four parts. First, understanding how an underwriter may analyze a property’s value using debt-coverage ratio, land to value ratio and borrower’s character. Second, how to estimate mortgage value in terms of annual debt payment and mortgage constant. Third, to estimate the equity value with the after financing cash flow and equity dividend rate. Finally, this session will conclude with estimating returns after financing.
Module 6 Building Operations Presentation
Open to download resource.
Open to download resource.
EDPOD Module 7 Building Renovation
Module 7 Building Renovation Class Recording
Open to view video.
Open to view video. This session explores the Building Renovation stage. We will review the critical tasks, major risks, key players and controllable costs of this stage. Students will learn how renovation of a property may increase the value to better optimize the existing use. In order to better understand how this value is created, the special skills section will focus on estimating the building renovation costs and the coinciding property value after renovation. After a review of those components, we will then discuss how to determine if a renovation project is feasible using overall net disposition cap rate analysis.
Module 7 Building Renovation Presentation
Open to download resource.
Open to download resource.
EDPOD Module 8 Property Redevelopment
Module 8 Property Redevelopment Class Recording
Open to view video.
Open to view video. This session explores the Property Redevelopment stage. We will review the critical tasks, major risks, key players and controllable costs of this stage. This is the eighth stage of the real estate development process and completes the development cycle. To complement this stage, the special skills section focuses on the hold versus sell decision. This analysis uses the marginal rate of return and reinvestment rates, first examining how to estimate each, and then the comparison between the two in order to make the decision.
Module 8 Property Redevelopment Presentation
Open to download resource.
Open to download resource.
Module 8 Case Study - Edmonton RFQ
Open to download resource.
Open to download resource.
Module 8 Case Study - St Elizabeths RFP
Open to download resource.
Open to download resource.
Module 8 Case Study - St Elizabeths RFP Response 1 - Anacostia Economic Development Team
Open to download resource.
Open to download resource.
Module 8 Case Study - St Elizabeths RFP Response 2 - Four Points Team
Open to download resource.
Open to download resource.
Module 8 Case Study - St Elizabeths RFP Response 3 - Friedman Capital Team
Open to download resource.
Open to download resource.
Module 8 Case Study - St Elizabeths RFP Response 4 - Redbrick LMD Team
Open to download resource.
Open to download resource.
Module 8 Case Study - St Elizabeths RFP Response 5 - Thoron Capital Team
Open to download resource.
Open to download resource.
Module 8 Special Skills - AirPark West Example
Open to download resource.
Open to download resource.
End of Course Items
EDPOD Exam - Required for Certificate Candidates
30 Questions  |  5 attempts  |  24/30 points to pass
30 Questions  |  5 attempts  |  24/30 points to pass If you are a NAIOP certificate candidate, the test is required. You must get 24 out of 30 questions correct in order to pass the test. You have five attempts to pass the test.
EDPOD Skipping the Exam Acknowledgement
Agree to terms to continue.
Agree to terms to continue. If you are not planning on taking the test, please click the Read Terms button. Then you will be able to complete the Evaluation and print your transcript.
EDPOD Evaluation
7 Questions
EDPOD Transcript
16.00 PDH, AIA Learning Units credits  |  Certificate available
16.00 PDH, AIA Learning Units credits  |  Certificate available