Why CRE Developers Should Build Strong Relations with Local Authorities?

You might have heard “Your ‘network’ is your ‘net worth’”. The same applies to commercial real estate as well. Many real estate development consultants in Atlanta emphasize the importance of building strong relationships with local authorities.

For Terra Alma, a leader in commercial real estate advisory in Atlanta, this is the backbone of successful development projects. Commercial real estate (CRE) developers may face delays, financial losses, or even project cancellations without good rapport with local authorities. But how exactly can these relationships help developers (like you), and why are they so crucial?

The Role of Local Authorities in CRE Development

Local authorities hold a lot of power in the CRE development process. They oversee zoning laws, building codes, environmental regulations, and public safety standards. In Atlanta, zoning laws determine the building structures and location. For example, commercial and residential properties cannot be mixed in certain areas without special permits.

But if you work closely with local authorities, you gain a clear understanding of these laws. It makes execution and planning easier without costly setbacks.

Many studies including Urban Land Institute, emphasize the importance of collaborating early with local government stakeholders to stay on schedule. For Terra Alma, a project consulting firm in Atlanta, staying on schedule means the difference between profit and loss. Below are 5 stunning benefits of doing so.

1. Avoiding Delays and Red Tape

For CRE developers, time is money. Delays can directly impact the profitability of a project. The National Bureau of Economic Research reported that construction delays can add up to 43% in costs per mile for infrastructure projects. Engaging with local authorities early helps you avoid unnecessary red tape. You can secure necessary permits and approvals on time.

A developer shared their experience working on a mixed-use development in Atlanta. “We didn’t involve the city early on, and it cost us six months of delays because we hadn’t anticipated certain zoning restrictions. Lesson learned: always loop them in from day one.”

At Terra Alma, we take this lesson seriously by proactively working with local authorities and integrating them into the planning process from the start. This minimizes the risk of unexpected barriers during construction.

2. Building Trust for Long-Term Success

Building strong relationships with local authorities doesn’t mean short-term benefits of avoiding delays. It establishes trust and a positive reputation within the community. Local governments are more likely to support developers with a track record of transparency, communication, and respect for regulations.

“Good relationships with city planners and officials can open doors to new opportunities,” says Anna Hunt, a seasoned real estate advisor in Atlanta. “Officials will often prioritize developers they know and trust, even when new opportunities arise.” She adds.

This is especially true in growing in Atlanta. As the city expands, local governments look for developers who can contribute to smart, sustainable growth. Developers having strong relationships with city officials are more likely to be trusted with larger, more complex projects.

3. Access to Incentives and Funding

Local authorities are also the gatekeepers to valuable incentives and funding options. In Atlanta, developers can access a range of tax incentives, such as the Opportunity Zone Program, which offers tax benefits for projects in economically distressed areas.

However, these programs require more than just applying. It often involves a strong relationship with the local economic development authorities.

Understanding and leveraging these incentives in Atlanta means millions of dollars in savings or additional funding.

4. Enhancing Community Engagement

Developers who work well with local authorities also have better relationships with the communities they serve. Local governments are often very protective of their communities, and they will advocate for projects that align with the needs and values of their residents.

You can easily identify and address community concerns in advance by collaborating with local authorities. This could involve modifying a development plan or investing in public infrastructure that benefits the community.

5. Improving Project Sustainability

Sustainability is a key priority in CRE development. Especially as cities like Atlanta work to reduce their carbon footprints, local authorities enforce sustainability regulations. It includes green building codes and energy efficiency standards, which developers must comply with.

When you (the developer) establish strong relationships with these authorities, you can collaborate on innovative solutions that meet sustainability goals while keeping projects financially viable.

Terra Alma, your commercial real estate advisor in Atlanta ensures our clients are fully informed of local sustainability initiatives. We ensure our project compliance with the latest green building regulations. While avoiding fines and increasing long-term profits.

FAQs

1. Why working with local authorities as a CRE developer is important?

Strong relationships with local authorities help developers understand zoning laws, avoid delays, and access valuable incentives. It leads to more successful projects.

2. What if I don’t work with local authorities?

You may face delays, financial penalties, or even project cancellations due to zoning violations or failure to meet building codes.

3. How can local authorities help with community engagement?

Local authorities can facilitate communication between you (developers) and residents. It ensures projects align with community needs and receive support.

4. What are some incentives local authorities offer for CRE development?

Incentives like tax breaks, funding for low-income areas, and support for sustainable development are often available if you work closely with local authorities.

5. How can I build trust with local authorities?

Be transparent, proactive, and respectful of local regulations. You’ll build long-lasting relationships with local government officials.

Conclusion

Establishing strong relationships with local authorities is key to success for any real estate development consultant in Atlanta. These relationships offer both short-term and long-term benefits i.e., avoiding costly delays, accessing financial incentives, and ensuring community support.

At Terra Alma, we understand the value of working closely with local authorities so the projects not only succeed but also contribute positively to the city’s growth.

Call us now for the most trustworthy CRE advice.