I. Real Estate Development Strategy The Blueprint: How Successful Developers Evaluate a Site Before Purchase By Corey Parchman | CorePar Development

Every successful real estate project starts long before the first shovel hits the ground. It begins with one of the most critical decisions a developer can make choosing the right site.

The difference between a great deal and a costly mistake often comes down to what happens before the purchase agreement is signed.

In today’s competitive market, evaluating a site isn’t just about location it’s about strategy.

1. Start With the Market, Not the Map

Before looking at parcels, look at the people. Who’s moving to the area? What’s driving job growth? How’s the rental absorption rate?

A developer’s first job is to understand the demand story. If population and employment are growing faster than housing supply, there’s opportunity. But if growth is flat or declining, even the best land may sit idle.

At CorePar Development, we start every potential deal with a market narrative a story supported by data. We look at employer pipelines, transportation improvements, and regional demographics. This gives context before we even step foot on the site.

2. Zoning: The Gatekeeper of Opportunity

Zoning dictates what you can build and how easily you can build it.

Understanding a site’s current zoning designation, surrounding land uses, and potential for rezoning is essential. A parcel that looks perfect on paper can turn into a bureaucratic maze if zoning is too restrictive.

Pro Tip: Don’t just ask what the zoning is. Ask what it could be. Cities often welcome projects that align with workforce housing, revitalization, or economic development priorities. A strong partnership with local officials can unlock that potential.

3. Infrastructure and Access

A site can be perfectly priced but practically unusable if it lacks access to water, sewer, or road frontage.

Developers must assess:

• Utility connections (and who pays for extensions)

• Road access, visibility, and traffic flow

• Drainage and topography issues

• Proximity to schools, jobs, and amenities

What might look like open, buildable land could require six-figure infrastructure improvements. Those hidden costs can destroy your pro forma before you ever start construction.

4. Environmental and Due Diligence

Environmental issues can stop a project in its tracks. Successful developers always budget for Phase I and Phase II environmental assessments checking for contamination, flood zones, wetlands, or other restrictions.

Ignoring this step can be disastrous. Cleaning up a brownfield site or mitigating floodplain issues can take years and burn through capital.

The rule is simple: do your homework before you fall in love with the site.

5. Financial Feasibility: Does It Pencil Out?

Once the physical and regulatory aspects check out, it’s time to see if the numbers make sense.

Key questions to answer:

• What’s the land cost per buildable unit?

• Can rents or sales support construction costs and financing?

• What’s the target return on cost or yield on cost?

• How sensitive is the project to interest rate changes or material price swings?

A strong site doesn’t just “fit the plan” it fits the capital stack.

6. Community Alignment

Today’s developers aren’t just building projects; they’re building trust.

Before purchasing, talk with city planners, neighbors, and economic development teams. A site that aligns with local goals — workforce housing, redevelopment, or mixed-use corridors is far more likely to receive support and expedited approvals.

When a project adds value for the community, it becomes easier to move it through approvals, attract financing, and build long-term goodwill.

7. Exit Strategy: Always Begin With the End in Mind

Before closing on a site, know how you’ll exit it. Are you building to sell, refinance, or hold long-term?

Different exit strategies require different capital structures, hold periods, and risk tolerances. The best developers think about their endgame before they make their first offer.

Final Thoughts

Great developers don’t just chase land — they chase alignment.

A successful site fits the market, the city’s vision, the financing model, and the developer’s mission. When all those elements align, you’ve found more than a parcel you’ve found opportunity.