We’ve all heard mentions of developers in the news when it comes to renovating spaces, but unless you’ve been in the business, it can be confusing to understand what this term actually means. Here, Jonathan Rooks breaks down the three different types of property developers.
#1: Big-Box Urban Developers
These developers are known for creating large-scale apartment and office buildings in urban areas. Often, these developments are referred to as “luxury,” even though the word is often simply synonymous with “renovated” or “new.” Sometimes, urban developers create new buildings from scratch. Other times, they take over abandoned spaces (like old shopping malls or old office buildings) and transform them into residential buildings.
#2: National Home Building Developers
Large home development companies work to create entire communities and often take on massive projects that change the landscape of a town or city. Often, there are several subdivisions within these companies. The subdivisions work together so that a variety of contractors all fall under one umbrella. Sometimes, large national home builders work with small-scale local contractors, but typically, they bring in their own team to get the job done, according to Jonathan Rooks.
#3: Incremental Developers
This type of developer typically works on a fairly small scale, working to take over individual lots that have been left in disrepair. Most developers in this category work on standard existing homes (usually less than three stories) or on apartment buildings that house fewer than 20 units. Rooks says some incremental developers live in the homes they’ve created, either short-term (while they’re going through the renovation) or long-term.
Developers who fall into this category usually work with local contractors and are looking for ways to get great work while also maximizing their profits. Some developers in this category develop properties as their full-time job, while others have a 9-5 and develop in their spare time.
