Seven Questions to Underwrite Before Acquiring a Development Site

A property can be attractive, well located, and still be the wrong acquisition. Predevelopment creates the discipline to test the opportunity before enthusiasm becomes commitment.

1. What problem will this development solve?

Demand should be specific. Identify who will use the completed asset, what need is unmet, and why this location and concept are positioned to serve it.

2. What can legally and physically be built?

Zoning, entitlements, access, utilities, environmental conditions, topography, easements, and infrastructure can materially change the feasible program.

3. Do the economics survive pressure?

Test acquisition, design, construction, financing, operating, and timing assumptions against conservative revenue scenarios. A viable opportunity needs room for uncertainty.

4. Who must participate?

Clarify the required owners, lenders, public stakeholders, designers, contractors, operators, and community relationships. A project without the right capability network carries hidden execution risk.

5. What is the approval path?

Map every entitlement, review, permit, dependency, and likely point of opposition. Approval risk is schedule risk and schedule risk is financial risk.

6. How will the property reach the market?

Leasing, sales, tenant strategy, brand position, and activation should be considered before design is complete—not after delivery.

7. What creates long-term resilience?

Consider adaptability, operating efficiency, maintenance, market change, and future uses. The strongest asset is one that can remain useful under more than one scenario.