A Comprehensive Guide to Understanding Land Development

May 4, 2023
land development

Expanding your business can be rewarding whether you offer a unique product or quality service. It signifies success and growth because your company reached new markets and increased revenue. This chapter can also create new job opportunities for your employees. 

Part of this endeavor means acquiring and developing a new property, especially if you'll establish a new branch. However, this process can be complicated and involves extensive research and consulting with reputable land developers. You should also know that land development and real estate development are related but different. 

If you want to ensure a stress-free process, let this article be a comprehensive guide to understanding land development. 

Raw Land Development vs. Real Estate Development: What’s the Difference?

Raw land development involves transforming land into a space suitable for building structures and laying property lines and utilities. Commercial land development usually involves pre-development, pre-construction, and post-construction stages. 

On the other hand, real estate development means buying land, developing it, and selling it. It also involves renovating existing properties and leasing or selling them. You should also know that while land development is crucial to developing real estate, it’s not everything it encompasses. 

Why Should Land Developers Partner with a Reliable Company?

Land developers must have a firm dedicated to land development for acquisitions and real estate ventures because developing a raw parcel can be complex and overwhelming without sufficient knowledge. A reliable and experienced company can help guide the process and make it more seamless. Companies with in-house commercial real estate services can also provide comprehensive coverage for each step. 

The 3 Step-Process of Turning Commercial Land into Property

You can divide raw land development into three stages, where each step has several substages. After differentiating raw land and real estate development and highlighting the significance of collaborating with a reliable company, let’s explore the three main steps. 

1. Pre-development

After selecting the best land plots for sale for your incoming project, you should now do the following steps: 

  • Research the area around the plot, including visibility, highway access, nearby commercial areas, and local economy. 
  • By studying your budget, expected returns, and the local market, you can determine if your commercial property development project will be financially viable. 
  • You should also check local government regulations and restrictions before investing in commercial land to ensure you get all the necessary permits. 
  • Another part of the research phase you shouldn’t overlook is considering financing and potential investors. Not doing so can result in a lousy deal and a possible project failure. 

2. Pre-construction

Once you buy commercial land for development, the incoming steps include planning, horizontal construction, choosing a reliable contractor, and obtaining permits. They will determine how smoothly the construction phase goes. 

3. Construction 

The construction phase of a land development project requires careful management and communication with general commercial contractors to ensure everyone stays on track and budget and completes the project immediately. You should also be flexible and ready to change plans and hire a trustworthy contractor who complies with inspection codes and regulations.

Why Work with Commercial Construction Companies?

Real estate development firms collaborating with commercial construction companies have a competitive edge over other contractors in land development projects because they know what happens in all the stages of the development process. 

When you partner with a trustworthy company, you’ll enjoy a more efficient timeline and better relationships with subcontractors and local governments and get diverse expertise. It’s also crucial to ensuring budget adherence and letting you get more tax incentives. Moreover, always conduct thorough background checks before employing them for the job. 


Expanding your business can be exciting, but this endeavor requires extensive planning and research. You can ensure a successful expansion project by educating yourself about land development and working with professional developers. 

If you need professional land developers in Florida to help expand your establishment, contact Next Generation Land Company! We’re committed to solving the American housing shortage by creating high-quality land developments for new homeownership dreams. Reach us now for more details!