News & Media
MIAMI — Florida’s real estate market has often been a predictor of national real estate trends, and the market has recently been infused with funding from international and domestic developers for major projects.
Smaller developers, however, shouldn’t feel squeezed out. With solid business plans, small developers can compete with larger players by understanding current market trends and leveraging local expertise.
The construction industry’s labor shortage makes securing skilled workers costly, especially for smaller developers with limited budgets. These firms must carefully consider cost variations and project timelines, as larger projects can tie up valuable resources that might be more effectively allocated to smaller, more manageable developments.
Enforceable non-compete agreements can help smaller firms retain key personnel in a highly competitive job market, but they should be reasonable in duration and scope. Building strong relationship with labor will be beneficial in the long run when bidding for larger projects.
Engineers, architects and contractors also can provide valuable guidance during the feasibility stage of a project, particularly with regard to costs, construction methods and scheduling. Small developers can grow in a hot market, but they should do so incrementally, rather than chase after the big money projects that can sap resources and expertise. Another option is for smaller developers to partner with other developers, particularly on large, high-profile projects.
Source: HousingWire (12/04/24) Groover, Claramargaret H.
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