By Joe Richmond
Space planning is a necessary component in real estate investment. As much as investors dislike the thought of adding time and expense to a project, the reality is that planning in the preliminary stages of real estate investing will save time, as well as money. Space planning is the process of information gathering, analysis, interpretation, problem solving, and scheduling.
Before investing in real estate, the savvy investor will set goals according to their needs analysis or feasibility of the proposed property. One of the primary motivators to this equation is the budget. Without a defined budget, most investors are setting themselves up for unexpected occurrences, delays, and usually spending more than expected. Other issues that information gathering include are:
- proposed use of space (residential, commercial projects , institutional, business, etc.)
- existing use of space
- existing condition of space
- zoning ordinances (which will dictate feasibility of proposed use of space)
- building codes
- permits
- licenses
- ROI (Return On Investment)
- surrounding spaces
- traffic studies
This is just some of the information that will need to be investigated in order to have enough information to analyze.
Once you has gathered all of the necessary information, it becomes time to analyze it and make a decision whether or not to move forward. I would suggest to make a folder (digital as well as hardcopy) and organize the information into categories as not to overwhelm yourself with too much information. Some of the things that need to be considered in developing your space plan is growth, flexibility, technology, accessibility, comfort, and privacy (or the lack thereof).
Businesses grow, families grow, and sometimes there is not room in the budget for additions or purchasing new facilities. So flexible spaces that are readily converted to handle the growth are much more desirable than looking for another space. As technology changes, we have to adapt to the changes or risk being left behind (which is another reason to plan for growth and expansion). Accessibility is an area of attention in public facilities and is gaining popularity in the residential community. It’s a rising concern to design homes with accessibility for people with disabilities, empty nesters, the elderly, etc.
It would also be a good practice to have subject matter experts review that information. This group will help you interpret the information in order to recommend the best way to achieve your goal within the budget. This group or team will also help to advise you on problems that may arise so that you will be prepared for the unexpected and plan accordingly. This is also the time to revise your plan to stay within budget or to make adjustments for those unexpected matters that you were unaware of before. Space planners will obtain all of the information collected and develop spaces that will meet the clients’ needs to the best of their ability. The space should be functional, efficient, and provide comfort while being code compliant as well.
One thing that I have learned in this industry is to always be prepared for changes. Whether they be minor or major, usually there is some nuance that forces your hand to go in a different direction than planned. This is also a great time to utilize your resources, mainly your team of consultants. They will assist you by providing suggestions that you might not realize were possible before. They will also be able to help you formalize your schedule.
Once the major revisions have taken place, the information has been interpreted, and plans have been made to invest in the property, schedules will need to be developed in order stay within the budget and also make a profit. Some of the things to consider, especially in the Midwest, is construction season. It is not recommended to install gypsum board in moist conditions. It is very expensive to pour concrete in the winter. Asphalt plants close in November and do not reopen until the spring. Permitting in the city of Chicago for commercial projects are about one month behind. But you will have investigated all of this prior to this point so it is just a matter of maximizing the positives and minimizing the negatives.
Overall, space planning maximizes the use of the space while creating a satisfied client as well.
For more information, contact Joe Richmond, owner of Sk8 Residential Solutions: P.O. Box 43168, Chicago IL 60643. (773)960-8893 or concrete41@excite.com
Excellent content here and a nice writing style too – keep up the great work!