‘The new text
Real Estate Development Matrix
is the frst truly signifcant advancement on
the groundwork laid by James Graaskamp many years ago. Dan Kohlhepp has taken his own
years of actual development experience combined with the perspectives gained teaching
this material to students and professionals that range from the University of San Diego to
Johns Hopkins University, CCIM and NAIOP members and integrated it all into a systematic
method of development decision making. Not only are the fundamental areas covered as in
the Graaskamp model, but, here we have the players involved, the requirements of achieving
more sustainable and responsible development, and the time sequence of development
action items. Here, one can study development from the perspective of what the participants
in the process actually do, what information they need and when they need to make decisions
from idea conception through property value harvesting. Covering this subject matter for all
property types and markets, is not an easy task and many developers have told academics
you can’t teach this stuff, but Dan Kohlhepp, who uniquely combines his experience in both
the academic and private sector worlds, has provided a new comprehensive model that
sets a new standard. Great cases are provided, making the concepts within the matrix tangible
for the advanced student of real estate. Suitable for advanced students, capstone courses
and professionals alike, I give the Real Estate Development Matrix my strongest possible
endorsement.’
– Norm Miller, PhD, Ernest Hahn Chair and Professor of
Real Estate Finance, University of San Diego
‘The matrix covers the entire development process and breaks it down into the key stages
that require critical tasks to be completed successfully to mitigate the development risk. The
book blends years of development experience with the academic background of the authors.
This is critical for a real estate development text because missing any of the key steps
can jeopardize the success of the entire development project. It takes someone who has
learned through years of development experience to know what the sources of risk are as you
navigate the development matix.’
– Jeffrey D. Fisher, Ph.D., President, Homer Hoyt Institute,
Professor Emeritus, Indiana University
‘The Real Estate Development Matrix
masterfully blends the complex topics and concepts
of the real estate development process into a navigable road map for any real estate profes-
sional. Daniel and Kimberly have creatively used real world “case studies” to reaffrm
concepts, provoke critical thinking and illustrate discussed topics in a way that brings clarity
of the real estate development process to all readers. This book is a must read for the aspiring
real estate professional, a seasoned developer and any of the multidisciplinary professionals
that plays a critical role in the real estate development process.’
– Bobby Zeiller, Managing Director-Development,
Silverstone Healthcare Company
‘Real Estate Development is usually taught as the cap-stone/fnal class in most real estate
programs. Development brings together all the aspects of real estate including: market feasi-
bility studies, market strategy, environmental studies, transportation/accessibility, legal
issues, acquisition, fnancing, approvals and permits, construction of physical improvements,
leasing, operations, sales and fnally disposition. As a professor teaching real estate develop-
ment over the past 30+ years, the complex development process is challenging for students
to grasp and master. Finding good textbooks that cover areas that a professor deems most
important in their course can be challenging.
Real Estate Development Matrix
takes a unique “modular” approach to the process, putting
each step into a compartment that can be understood and accomplished independently.
This allows each of the individual contributors to the development process to be able to
understand their role in the process and the value that it creates. A developer is like an orches-
tra leader who knows what the music should sound like and must lead each instrumentalist
to function in a harmonious fashion to produce a good result. Just as an orchestra leader may
not be able to play every instrument, a developer does not have to be able to produce alone
each task of the land planners, architects, engineers, bankers, contractors, sub-contractors,
lawyers, brokers and users they lead; who all have special expertise. The developer must be
able visualize and communicate the end goal to all players and then oversee and coordinate
all those players to achieve the fnal result.
The book breaks the development process into seven stages: land banking, land packaging,
land development, building development, building operation, building renovation and prop-
erty redevelopment. It then uses the eight tasks needed in each stage: acquisition, fnancing,
market studies and market strategy, environmental studies, approvals and permits, physical
improvements, transportation/accessibility, and sales/disposition. Therefore, each player can
see their own task and how it fts into the big picture, and the developer can more easily
manage the entire project and coordinate the tasks.
Each topic is handled in an industry standard fashion that is already being used by the
NAIOP (commercial developers) and CCIM (commercial brokers) organizations in their
professional courses, providing good consistency, terminology and approach. The Kohlhepps
have been developers, operators, and instructors – thus the applied nature of their approach.
I recommend that anyone teaching real estate and/or development courses consider this
book, as all or parts of it may be useful in many different courses.’
– Glenn R. Mueller, PhD, Professor – University of Denver,
FL Burns School of Real Estate & Construction Management,
Real Estate Investment Strategist – Black Creek Group, Denver, CO
‘Forever academics have attempted to describe and explain property development in the
context of specifc property types. Dr. Kohlhepp breaks this paradigm rut by focusing on
the 7 different stages of property development and the 8 specifc tasks associated with
each stage. The brilliance of this framework is that it transcends any property-type specifcs
and squarely outlines the whole of property development, regardless of property type.
Dr. Kohlhepp artfully explains property development as a series of complex and interrelated
activities, and demonstrates how the Development Matrix can help bring order to the thought
process. The Matrix encourages the reader to think logically and systematically, but not
linearly about property development.’
– Jeff Engelstad, Ph.D., FRICS, CCIM, Professor, Burns School of
Real Estate & Construction Management, University of Denver
‘The
Real Estate Development Matrix
is simple, clear, and insightful. The authors breakdown
a confusing process into seven understandable stages. This readable and non-technical book
is a must read for every participant in real estate development. The companion website
nicely compliments the text with in-depth discussions and analysis.
The real-world examples clearly demonstrate the authors’ points. Having worked with the
senior author for over 30 years, I have participated in most of the projects discussed in
the text. They were always learning experiences and illustrate the stages and tasks in the
Matrix.
I particularly enjoyed the discussion of “project feasibility” and the Three Commandments
of real estate development.’
– Art Fields, Retired President and CEO of Crescent Resources, LLC
‘I have had the pleasure of working alon