Key Phases in Predevelopment: What Every Developer Should Prepare Before Breaking Ground
Before the first shovel hits the ground, a real estate development project undergoes a rigorous predevelopment process. This phase determines whether a project is feasible, financially sound, and ready for municipal approvals. Strong predevelopment planning is one of the biggest predictors of project success.
This guide outlines the key phases in predevelopment and what developers should prepare at each step.
1. Preliminary Site Analysis & Feasibility
Predevelopment begins with identifying a promising site and assessing its development potential. Key tasks include:
Reviewing zoning and permitted uses
Evaluating OCP consistency
Running quick density and FAR calculations
Conducting preliminary pro forma analysis
The goal is to identify early constraints and opportunities before major investments.
2. Due Diligence
Before acquisition or early design, developers should conduct detailed due diligence, including:
Title review (easements, covenants, rights-of-way)
Environmental studies (Phase I ESA, riparian, floodplain)
Geotechnical investigations
Servicing capacity assessments (water, sewer, storm)
Identifying risks early saves time and prevents costly delays later.
3. Concept Design & Massing
After confirming feasibility, consultants begin shaping the project:
Massing studies to test heights, setbacks, and form
Preliminary unit layouts
Parking and circulation concepts
Energy and sustainability modelling
The goal is to ensure the development fits within regulatory frameworks and is financially viable.
4. Financial Feasibility Modelling
A robust pro forma helps validate a project’s business case. Developers should analyze:
Hard and soft costs
Revenue projections and target rents/pricing
Interest rates and financing costs
Sensitivity scenarios (inflation, delays, construction cost escalation)
Incentives such as CMHC or BC Housing programs can significantly enhance viability.
5. Pre-Application with the Municipality
Before submitting formal applications, developers typically meet with municipal planning staff to review:
Preliminary design
Policy alignment
Affordable housing expectations
Servicing requirements
Potential community concerns
Early feedback helps refine the project and minimize friction during approvals.
6. Rezoning & Development Permit Process
Once ready, the formal application stages begin:
Detailed architectural drawings
Engineering reports
Traffic impact studies
Environmental and shadow studies
Community engagement (open houses, presentations)
Council review and approvals
This is often the longest phase in predevelopment.
7. Building Permit Preparation
With zoning and DP in hand, consultants prepare full construction drawings and compliance documentation, including:
Structural, mechanical, and electrical design
Step Code and sustainability reports
Fire and safety reviews
Updated costing for lender approval
8. Pre-Construction Mobilization
Before mobilizing trades and equipment, developers finalize:
Tendering
Contractor selection
Financing confirmations
Insurance and bonding
Construction schedules and risk planning
This sets the stage for efficient construction and cost control.
The importance of predevelopment
Successful development depends on the strength of predevelopment planning. By investing in feasibility, due diligence, design, and approvals, developers reduce risk and increase certainty, ultimately leading to smoother construction and stronger financial outcomes.
Need support with feasibility studies, early planning, or navigating the approvals process? Our team specializes in guiding projects from concept to construction readiness.