It's not about what to build, but what can you get the approval to build.

We look at properties all the time to determine their highest and best use. This helps us figure out what to build. It allows Pugh Management to maximize the value of a property, to pay the highest possible price, while also making the best deal for our investors and family office partners.

There is an element of real estate development that is just as important as economic feasibility and that is political feasibility. This is not something developer’s discuss because it is a kind of “third-rail”.

This topic does have to be handled with care, but it is very important to our partners and investors because it represents risk.

So how do you determine what can be approved and built politically?

First you speak with an experienced land-use attorney in the town or city where you are looking to build. They will know the zoning and the general atmosphere of approvals. They will also know the right city/town officials to have an initial conversation with to gauge the potential for your project. The town planner can be a good resource as well to provide guidance. The city/town council member who represents the neighborhood should be consulted as well.

Ultimately, you will need the support of the community to not only get the approvals to build, but to make your development a success. Once you’ve met with with the community, town/city, you should have a handle on how “development friendly” the city or town is and whether you have a chance to proceed with your project. If it’s unclear, then you may move on or proceed with caution.

Each stage of the development process presents milestones. Before closing on a property, we recommend that you have a clearly defined plan, vetted by the community, neighborhood representatives and city/town officials. That way you limit your upfront approvals risk.