In many communities throughout Florida, there is a shortage of different types of housing. As a commercial developer, you may be looking to help solve this problem by building housing complexes in various areas. However, there are many elements that you need to consider prior to building housing complexes.
Taking the time to consider each of these factors can help you to ensure there is a need for the type of housing you are building and can help you when it comes to financing the project. Here are some of the key factors that you will want to consider when you are considering or preparing to construct housing complexes.
If there is a Need for Housing in a Specific Area
One of the factors that you need to consider before going too far into the planning phase is whether there is a need for housing in your specific area. Some areas are simply more desirable to live in than other areas, and some areas have less housing and more need than other areas. Do a quick search in your area or talk to real estate agents and property managers. Find out how long condos, apartments, townhomes or other types of housing in housing communities sit on the market before being purchased or rented. If housing goes quickly, there is a need for housing in that area.
What Types of Housing There Is a Need For in the Area
In addition to determining if there is a need for housing, take the time to learn what type of housing is in need. For example, if you are looking to build in a college community, you may need housing that is more affordable than luxurious. If you are looking to build in a beach community, you may have more high-end buyers looking for beachfront property. You need to learn what type of housing there is a need for, because if you build housing that is not in demand, it may not sell or rent.
The Household Sizes and Occupancy Limits in Specific Areas
Prior to building, you always want to take the time to learn about the demographics in your area. Learn about what normal household sizes and family sizes are in the area you want to build. Are you building and catering toward large families or single people? Also, learn about occupancy limits in your specific area. This can help you determine what size units you need to be focusing on building and how many people can live in each of those units.
What Tenants or Owners Expect in the Area You Are Building
The size and area of a building are important. But in addition to this, you also need to learn what tenants and owners in the area expect when they are buying or renting a home in a specific area. Is parking normally included in the area? If so, you need to ensure you have parking spaces or a parking lot below the building? Are pools or work out spaces normal or expected in the area? If so, you may need to incorporate these ideas into your plans. You want to ensure that you give owners or renters everything they expect in your building or you may have a hard time competing with other developments nearby.
Zoning and Tax Information For Specific Areas
Finally, be sure to do your research on zoning and tax information for specific areas. Rezoning a commercial lot can be time-consuming and costly. Finding a lot already zoned for multi-family developments can be beneficial. Likewise, different counties have different tax rates and offer different tax incentives. You may find that buying an old building and revitalizing it has a hefty tax incentive that can make developing the property affordable compared to building a new building all together. Research different areas and what their zoning, taxes and tax incentives are.
Housing is needed in many areas throughout Florida. Developers who are willing to develop properties and turn them into housing can provide people with the housing they need, while also making a healthy profit for themselves or their business. However, it is important that you find a company who can help you to find the best places to develop and ensure your building is constructed on-time and at budget. Here at MH Williams, we can help you with all of your commercial property needs. Contact us today and let’s work together to make your vision come to life.