Risk perception of unentitled land

Even the most seemingly straightforward developments are not without risk. Given development's speculative nature, developers are taking a risk today that there will be future demand for their project at the time of delivery. Additionally, given the high fixed costs of development, such as land value and construction costs, developers face the risk that their projected rental revenue or asset valuation might shift unfavorably by the time of delivery. While nearly all developments face these risks, developers acquiring a parcel of land that must still go through the entitlement and permitting process are faced with a host of additional risks given the uncertainty surrounding third party approvals. As zoning is a localized set of regulations, the process and associated risks vary from market to market.

Department dc:contributor.department

Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2019

Author dc:creator

• Pfingston, Gina.

Advisor dc:contributor.advisor

• David Geltner.

• Center for Real Estate. Program in Real Estate Development.

Statement dc:rights

• MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/123604

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/123604