Commercial Investment Real Estate July/August 2019 | Page 19

Beyond that of a typical building investment, attention is needed to assess whether general or specific plans govern uses and zoning of the property. Prospective investors must study the existing structure — its condition and foundation; mechanical, electrical and plumbing; and life-safety and accessibility. Constructability for the intended use should not be under- estimated. Appropriate assessment will narrow possibilities for adaptive reuse projects. It also helps developers and investors rule out uses that are against regulations, too costly, or requiring too much remediation to pencil. Stakeholders must also consider if a community will buy into the project. Support from community leaders and local groups are essential to success, ultimately delivering deeper benefits to inves- tors and communities. This is particularly true if the intended- use changes require approval from a local planning commission, architectural review board, or city council. Many markets display a strong sense of “not in my backyard,” causing powerful community opposition to development of any kind. In some municipalities, projects can be taken to the bal- lot box and often killed at great expense to all involved. Town hall meetings and other public events that allow developers to illustrate how adaptive reuse projects will create benefits can go a long way toward achieving buy-in. While the process of coordinating with municipalities may sound daunting, local consultants with expertise in these issues can help investors bring a competitive advantage to the project. Looking at Old Haunts It’s equally important to dig into potential ghosts of a property, including legacy environmental issues, boundary or easement challenges, or historical preservation ordinances. For example, shopping centers that previously housed dry cleaners, auto dealerships, or gas stations must be remediated to create spaces that are suitable for people to shop, live, and/or work. Long-term industrial use can also present more complex challenges in terms of environmental remediation. At larger industrial properties, easements, boundaries, and rights of way all need to be assessed to ensure free and clear use when requesting zoning and construction approvals. Investors must develop a keen sense of trends affecting supply and demand in all properties within the market under consideration; these can be very local studies to regional and national trends. Peter McIntyre is an executive vice president at AEI Consultants. Contact him at [email protected]. CCIM Development Specialty Track The CCIM Development Specialty Track program is one of the industry’s leading continuing education concentrations, providing developers, investors, and consultants with a comprehensive understanding of the entire process of development from due diligence to disposition. The program content is structured around the Real Estate Development Matrix developed by Daniel Kohlhepp, Ph.D., of the world-renowned Johns Hopkins Carey Business School. Upcoming Courses Introduction to Development Workshops: Aug. 27−29, 2019 | Chicago Sept. 18−20, 2019 | Houston Oct. 22−24, 2019 | Kirkland, Wash. See additional course listings at www.ccim.com/dev-track To learn more, visit www.ccim.com/dev-track or call [phone], opt 2 CIREMAGAZINE.COM July | August 2019 17