We work directly with retailers around the country in the development of build-to-suit retail real estate under preferred developer arrangements. We work hand-in-hand with our retail development partners to help them expand within existing markets and move into new markets. Our retail development partners range in type, and include quick service restaurants, essential services, auto repair, industrial, and medical.
What is a Preferred Development Agreement?
In simplest form, prefered development agreements are written agreements between a retailer and a real estate developer for the development of commercial real estate. The agreements may be exclusive or non-exclusive and may be limited by geographic or trade area. The agreement typically details the process and methodology for site selection, and vests ultimate control in the retailer for approving or disapproving opportunities proposed by the developer.
What is the Process?
Phase One: Investigation & Education
We dedicate significant time and energy working with our retail development partner to learn the what and why behind each of our retail development partners’ site requirements and building specifications. Once the site requirements and design specifications have been refined, we leverage our national database of brokers to source opportunities that meet our retail partners’ requirements.
Phase Two: Deal Sourcing & Presentment
We source and scrutinize opportunities to locate opportunities that meet our retail development partner’s requirements and expectations. Opportunities that meet our development partner’s requirements are presented to the retail development partner for consideration.
Phase Three: Decision
Our retail development partners enjoy the carte blanche authority to accept or reject any opportunity presented. If our retail development partner rejects the opportunity, we return to pase 2, or, if necessary, phase 1. Alternatively, if the retail development partner approves the opportunity, we enter into a commercial lease for the property, which typically provides that the retail development partner is not obligated to begin paying rent until a certificate of occupancy is issued and keys are delivered.
Phase Four: Entitlements & Site Design
Development of the real estate commences in earnest. If the property requires a rezone or conditional use permit, we mobilize our planning and zoning team to obtain the appropriate governmental authority. Concurrently with any potential rezone or conditional use application, we engage our team of architects and engineers to develop site and design plans.
Phase Five: Design Review
The site and design plans are presented to our retail development partner for consideration and input. We work collaboratively with our retail development partner to ensure that all of its design specifications are met before approving the plans.
Phase Six: Construction
Once the site and design plans have been approved, we work hand-in-hand with our team of architects, engineers and contractors to obtain the necessary permits and begin horizontal construction. Once horizontal construction is completed, or in some cases nearly completed, vertical construction begins.
Phase Seven: Delivery of Possession
Once vertical construction is completed, application is made for a certificate of occupancy. Upon issuance of the certificate of occupancy, the keys are delivered to our retail development partner and rent typically commences.
Why Work with Hanson Development?
Working under a preferred developer agreement with an experienced real estate developer, such as Hanson Development, reduces inefficiencies, affords the retail development partner with the benefits associated with having an in-house development team while avoiding the associated costs, and mitigates risk in the development of new locations.
With a combined 50+ years in commercial real estate, our team is well experienced in managing all facets of the development process from site selection and acquisition to construction and development. Our expertise in navigating city, zoning, and entitlement processes, managing contractors, and maintaining a reputation for excellence among our industry leading strategic partners such as architects, engineers, and designers, creates a stress free development process for our retail development partners.
Our years of experience in commercial real estate has led to the creation of a vast network of commercial real estate brokers across the country. We engage with our network of brokers on a daily basis in an effort to source the very best opportunities for our retail development partners. Our reputation within the brokerage community provides us exclusive access to opportunities before they officially hit the market, and these “off market” opportunities are frequently the source of the very best opportunities for our retail development partners.
In addition, our retail development partners have a one-stop partner for all things related to the development of new locations which in turn allows them to focus on what they do best…run their business. Having a one-stop partner eliminates the inefficiency associated with locating a developer, explaining and conveying site and design requirements, and managing a new construction project each and every time the retailer seeks to develop a new location.
In addition to all of the previously mentioned benefits, there is little to no downside or risk in becoming a preferred development partner, as our retail development partners retain all authority to approve or disapprove opportunities presented to them, and typically do not incur any monetary expense until an opportunity is approved, construction is completed, and the keys are delivered.