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home blog postings real estate developers and modular offices?

Real Estate Developers and Modular Offices?

November 14, 2008 - J. Moore

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In the past few years Pac-Van has seen a trend in today's suburban real estate developments. Home builders are using highly customized modular offices to sell their high-dollar stick-built homes. There are a number of reasons that these traditionally opposing construction practices work very well together in these scenarios.

In these developments where property is the product, you need to be able to remove your sales office to sell that final lot. Companies that specialize in stick-built homes don't want to build a permanent structure and then have to tear it down. Having an office that can be removed easily, transported to the next crop of vacant lots, and reset in a very short amount of time is a huge advantage. It saves the developer substantially on man-hours and materials.

The techniques in traditional stick-built construction and modular construction are similar, but there are differences. Unless a general contractor is familiar with building in modules, they may not be able to construct their own modular building that can be conveniently disassembled and reassembled. The home builder may lose money if they build their own sales office, tear it down, and move it for each project because they are tying up their construction crews on work that is not directly driving revenue. Having a reputable modular building provider take on the project saves time, gets the job done efficiently, and typically costs less overall.

To promote sales, the office's exterior can be finished to match the development by the contractor, and the interior can be customized to showcase the designs and styles that are being used throughout the housing development. This minimizes the time investment for the home builder's labor force since they are only adding the finishing elements. A customized sales office facilitates the sales process, because the developer doesn't have to maintain a "show house" or schedule tours around current residents' schedules. This also showcases the quality of the home builder's product in a tightly controlled environment and enables the developer to generate revenue sooner because of the quick set up of the modular sales office.

Traditionally the modular and stick built industries are not the best bedfellows but for home builders in suburban developments, these two construction techniques blend very well to drive sales and revenue.

Member Comments

» View all comments (2 total comments)
03/09/2009 - posted by Irving D

The real estate developer must have an idea, usually based on experience in the market place, or intuition, about a residential real estate development that he/she believes the market demand for exceeds market supply.

For example, if the population and number of households in a local market are growing, and the developer believes that he has an idea for a residential subdivision with innovative amenities and attractions, and if the developer has a strong desire for creating that type of development, then the developer should pursue the creation of that development. The two key factors about having an idea for a real estate development must be, first, a strong market demand for that type of development or a market niche, and and second a strong emotional and financial commitment by the developer to create that type of residential development.

There isn’t a single world economy immune to the recession that we are in, even other powerhouses such as Dubai.  Dubai, a member state of the United Arab Emirates, has become cash strapped. They’ve been forced to slow or halt completely the many audacious construction projects that they are renowned for.  The country is known for its welcoming attitude to tourists. Dubai draws people for concert festivals and sporting events. The Dubai Rugby 7s, a rugby Sevens tournament which is part of the Rugby Sevens World Series draws thousands into the diminutive Arab nation.  The United Arab Emirates recently had to accept a bailout package from their neighbors in Abu Dhabi.

03/26/2009 - posted by Marcelo Y

Building investment with long-term goal of course must have a proper planning. Investment no longer seems like the sound and proper planning it once was, and getting cash advance loans seem to be a better idea than talking to a broker to buy stock. 

The way it seems to work on Wall Street seems to be that when things look good, everyone’s happy and does everything they can to make things stay that way but once they inexorably change, the stock market and all its agents and otherwise begin to panic.

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