From Design to Development

Işılay Civan

Real estate development involves many complex, dynamic, and uncertain elements. In the pre-development stage, greater uncertainties result from the fact that the space being considered has not yet been created. Considering both the inherent characteristics of the real estate and the inefficiency of the market it operates, any aid in the investment decision process is believed to add to the quality of the end product. Consequently, most, if not all, of the development companies make office development decisions using some kind of a procedure in this stage. However low occupancy rates and long payback periods that is being faced, even by the most recently completed Class A office projects in Turkey, show that there are serious deficiencies in these applied procedures and that they lack the necessary components of project feasibility analysis. That's why the purpose of this book is to explore and identify the deficiencies of the decision-making models currently used by Turkish real estate development companies in the pre-development stage of office development projects and to recommend necessary additions and/or deletions for the enhancement of these company models. This work targets the primary decision-makers of the office developments, including both the national and international investors and developers.