Something that isn't discussed as much on this forum is Residential Development. I am curious as to see if any of you guys would ever consider taking a job in this field? Knowing what you know now would you tell your younger self to consider going this route? Think for a major company such as KB homes, Toll Brothers etc.
Off the top of my head pros/cons (These may be incorrect as all I have is second hand knowledge from friends in the industry)
Pros: Closer to the asset class Easier to break in More feasible to start your own developments in the near term?
Cons: Pay Not sure if you can switch back to commercial (Then again you might not want to)
Thoughts?
So to me, apartments and large condo buildings are "multifamily" whereas townhomes, duplexes, and single family homes are "residential" with the split being less what the use of each building is (since all are residences) and more the world/ecosystem that each exists in. What I consider "multifamily" is firmly commercial real estate, while what I consider residential is firmly residential real estate and there is a world of difference between commercial and residential real estate.
I would never call myself a "residential developer" because that sounds like I build houses. I'm a multifamily developer. Not sure how much it really matters, but it's a distinction I've always heard.
have worked in office and multi on bigger development deals, IMO multi is boring. multi design is not particularly complicated. multi underwriting/execution strategy is incredibly simpe--proxy your rents/concessions and lease-up pace off the market, know your operating expenses and you are done. That being said, if you find a resi group that is doing dynamic urban infill stuff, like a mix of high-rise, podium and wrap product, that is pretty cool.
I thought office was a lot more challenging and dynamic, just my 2 cents.
As a multi guy who is growing bored of it and looking into office more, I would agree
2nded - spent a little bit of time in multi and moved back to office for that reason.
I haven't waded through all of the discussion above about whether resi development includes multifamily or not, but I would add that from a single family perspective, there are generally multiple layers on the "development" of a new community. The developer is often distinct from the homebuilder. Developers of MPCs generally work to plan the community, creating the mix of uses, open spaces, etc and will construct the infrastructure and sometimes the first phases of the community (whether thats homes, shopping centers, apartments or other commercial) and sell off improved tracts to builders to construct the other pieces. The big homebuilders can act as developers or just purchase pieces of someone elses development to put up homes. Not sure how responsibility is split at these companies, but the development aspect could be very interesting while the production homebuilding portion is going to be more construction management than real estate development in my opinion.