Physical Vs. Financial Aspects Of Development

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Physical Vs. Financial Aspects of Development

The physical- financial entity is a balance of two different components working towards the same common goal. Each one has their areas of focus and attributes to contribute to the project. If one has more influence than the other, an imbalance could occur and result in problems with the development and its success. The physical side must work with the architects, engineers, and construction team to create the schematic design and budget possibilities for the project in the predevelopment stage. This will include alternatives and rough preliminary designs. When the development moves over to the document development stage, they become responsible for the construction documents, budgeting, and schedules for the actual construction of the project. The financial side of the development involves the business side of the project. This is where the market and marketability studies will be conducted and various feasibility and investment analysis reports will be submitted. The financial entity of the development will continue to work through the predevelopment and document development stages to put forth the best suited analysis for the market, feasibility, and marketability studies.

The Physical side of the project contains two sectors: natural environment and urban linkages. Within the natural environment sector there is a focus on geology, soils, topography, climate and water, and plant/wildlife ecology. The urban linkage contains transportation, infrastructure, landuse and other regulations, and urban dynamics. The financial dimension of the model involves two sectors: space markets and money markets. Within the space market sector is use/type, price, geography, supply and demand, real estate cycles. Within the money market sector is OPM, equity and debt, public and private, and individual/institutional.

The physical side and the financial side have to work in a open exchange of information. The synergy of this project before it ever starts construction must come from the cooperation and adjustments made by both sides to create the best development. The physical side must take into account several things with the environmental sector. How can this site be used? What amenities or attractions can I draw from the existing environment? How can I improve the existing environment to create a more valuable development? The urban linkage must take into consideration how they are going to create their link to the surrounding environment and/or city.

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