General process of pre development of commercial real estate
07/11/2019

General process of pre development of commercial real estate


2. General process of pre development of commercial real estate

The general process of commercial real estate development includes the whole process from land acquisition to preliminary research, positioning, business planning, marketing and promotion, investment attraction, implementation and operation management. It is based on the key links of commercial real estate development. In this basic process, we focus on the key links of Kaiga construction in Qianqi.

Step: market condition judgment

At the beginning of the project, developers need to make a preliminary analysis and judgment on the market conditions of the areas to be selected for the project. This judgment can be called the initial judgment; without the analysis from the micro perspective of the project, only from the market situation and potential of the region to judge the feasibility of the development of the commercial real estate project in the urban area, and have a Macro Thinking on the positioning of the project.

Because there are many kinds of commercial real estate forms, and all kinds of commercial real estate forms have the problem of market maturity. If the social productivity level of a certain region is relatively low and people's income level is not high, investors can no longer have the strength to invest and build large-scale commercial real estate projects in the region.

If the land has been acquired, we must have a breakthrough and competitive thinking to find the way out of the project.

In many commercial property development process, there are many developers to grasp the characteristics of commercial real estate deviation, do not understand the commercial law. Either the development mode of housing or the operation mode of commercial projects in developed cities at home and abroad are applied, which often leads to different situations.

Why did Beijing juku building fail?

Beijing juku building, located in the Andingmen of the old urban area, has a mature location and is very popular. After the opening of phase I commercial projects, tenants have closed down. It led to three consecutive collapses and closures of commercial buildings. Although the location is good, but the developers don't understand the business, the popularity around the project is strong, but the consumption level is low, so we have to make a high-end shopping mall according to the high-end business model. As a result, a large number of operating households feel that the rent is too high, and the operating costs are difficult for you to survive.

Step 2: project location

The location of commercial real estate project will be decisive for the success of the project. In fact, not all places are suitable for the development of commercial real estate. Only when a certain place has the corresponding conditions can it be done.

In view of its functional characteristics, the requirements for location and surrounding conditions of commercial real estate are quite different from those of ordinary real estate. A residential community, an office building to solve the passenger flow is limited in a certain range, but commercial real estate is different, the passenger flow to be solved will be doubled with the change of the state of operation, will also be sharply reduced. When the passenger flow of a commercial real estate project is doubled, whether the location of the project can adapt becomes an important issue.

There are different schemes for different projects. Developers can organize their own teams to carry out research and analysis of this work, or entrust professional consulting agencies to choose.

Location selection is not only to select the location, but also to consider whether the business type is in line with the region, the habits of people in the region, consumption preferences, etc.

Step 3. Judge the developable scale

After the completion of the commercial real estate site selection, it is necessary to analyze the market prospect and the feasibility of the developable scale for the specific project site selection, and determine the market basis of the project, the population situation of the surrounding business circle, the possible customer flow, the project turnover generated by the customer flow and the developable scale of the project.

Based on the investigation of shopping malls, many consulting organizations establish relevant analysis models to calculate the possible customer flow of the project location. According to the judgment of per capita retail consumption in the region, the possible retail sales of the project can be calculated. By referring to the average retail sales per square meter of commercial facilities in the region, the project can be developed The scale of commercial real estate projects.

Step 4. Land acquisition and government permission

After the analysis of the market prospect and development scale of commercial real estate projects, it will face the problems of land acquisition and government permission. The land acquisition investor obtains the land development and use right of the corresponding plot for a certain period from the land department of the government through the market "bidding, auction and hanging". The government permission refers to the relevant competent department of the government to apply for the construction of commercial real estate projects, and obtains the approval of the corresponding planning committee, the Ministry of planning, the Commercial Commission or the Economic Commission and other government departments.


The demand of commercial real estate project for land scale should meet the needs of its own function





Land scale

A kind of




land price

The level of land price will directly determine the competitive advantage of the project, especially in the early stage of project operation, the lower the land price is, the less the pressure of capital in the early stage is




A kind of



Two standards should be followed for land acquisition of the project

Step 5: project positioning refinement

The orientation of land acquisition in the early stage is a directional orientation. On the premise of correct orientation, we should thoroughly and carefully study and analyze the consumption target customers, project types, business formats, profit models, product formation, characteristics, startup strategies, financial measurement and other related issues of the project. This step is an important factor for the success of the project. If there is deviation in positioning, the project may not succeed. The accuracy of positioning depends on the market.

Generally, step 4 and step 5 can be implemented at the same time. In the process of land acquisition, the project positioning can be modified, and the work of land acquisition has begun in the process of project positioning.

Project orientation