It is easy to forget that master planning is an essential step in
designing an effective and profitable real estate development
strategy. The master plan helps strike the balance between investment
objectives and programmatic requirements, taking
the nature of site and control parameters of zoning, building,
and environmental ordinances into account. Therefore, it is
a key tool for both economically and environmentally sound
decision-making..
Forecast Needs and Vision
Healthy corporations seem to grow gradually, and so do their
spatial needs. Acquiring real estate and building facilities are
long lead-time processes. Well-run corporations feel the need
to proactively develop strategic facility plans well in advance of
the actual demand. The planning efforts ensure that the right
type and quantity of land, buildings, and services exist in the
right place at the right time to house corporations’ burgeoning
resources. This can have a significant impact on the future
financial success of the company. Corporate clients, targeting
specific market sectors, require specialized built-to-suit facilities
with specific quality and quantity of space in mind. Thus,
master planning and design become incredibly important to
resource planning as corporations start allocating finances, assemble
expertise, develop schedule, and build facilities in the
right quantity and with the desired results. Further, corporate
image, or vision, is a part of the client’s competitive advantage,
which the architect can integrate most thoughtfully and
effectively through the process of master planning.
Evaluate the Site.
Location, location, location: Some sites may offer strategic
advantages in terms of zoning, topography, access, and geometry.
When selecting the site, it is crucial to evaluate the
physical aspects of alternative sites as they can have enormous
financial impact on the development. Highly contoured
sites, of course, are expensive to build upon. A complex
program can be relatively easy to reconcile with a site’s regular
geometry, while the presence of a ground water table may
limit below-grade expansion. Soil quality has direct impact on
the type and cost of foundation, and contaminated soil will
require mitigation. Sites with similar topography and regular
geometry may also have other competing characters that only
can be discerned through a master planning exercise.
Clients seeking to find an appropriate site should work in close
coordination with architects to determine the suitability of the
site with respect to the program in mind. Some sites may offer
better development density and flexible zoning benefits than
others. Access to the existing roadways and utilities reduce
infrastructure development cost. The financial attributes of
various sites such as initial purchase cost, tax incentives, and
resale value can be determining factors as well. Environmental
restrictions, undesirable neighboring properties, covenants,
easements, deed restrictions, entitlement restrictions, and
even archeological impediments are other compelling factors
to be taken into account.
Holistically Consider Regulations
Master planning is an ideal tool to convey the intent and
benefits of the proposed development to regulating bodies.
All large-scale public projects are subject to the requirements
of Environmental Impact Assessment, for example. They are
also subject to public scrutiny and interest. The process of
master planning addresses zoning regulations and building
codes in detail, since these may have considerable impact on
the outcome of the development. Easements may limit the
development of a portion of land. Stipulated zoning tends to
exact certain conditional development by requiring developers
to perform certain activities (providing low cost housing,
development of open spaces, provision of public amenities,
etc.) in order to permit development. On the other hand,
incentive zoning provisions make projects desirable for both
public and private developers by encouraging developers to
integrate certain amenities or qualities (open spaces, plazas,
public art, public amenities, etc.) in their projects in return
for identified benefits such as an increase in development
density or rapid processing and approval of applications.
Historic districts may have specific conditions that may limit
the appearance and extent of development permitted, just
one of many considerations it’s important to understand early.
Plan Efficiently for Infrastructure
Other value-adding parameters are pursued concurrently during
master planning as well. Efficient and thoughtful vehicular
and pedestrian circulation can help reduce infrastructure
development costs by maximizing green space, increasing
porous paving, and reducing hardscape to bare minimum
requirement. Sustainable principles and urban design features
make projects more attractive for prospective tenants and
buyers. Views and vistas fetch high premiums on unit sales,
thus defining premier locations of the site. Early geographic
and geological considerations can significantly reduce construction
cost by proposing location of buildings in congruence
with the existing topography and ground water. Cut and
fill encourage re-use. Locating pathways along the contours
reduces excavation costs and does minimum damage to the
sensitive geography. The occurrence of hard strata escalates
the excavation cost and thus vertical stacking of the program
may be economically feasible. Population density derived
through a master planning exercise helps to determine the
cost associated with the provision of utility infrastructure for
water, gas, and power
Avoid Over- and Underdevelopment
Overdevelopment and underdevelopment are both detrimental
to the financial success of real estate investments, and can
be avoided with a bit of planning. A project is overdeveloped
when the pace of demand lags the pace of development.
Developers invariably run the risk of delayed return on
investment in a sluggish market, sometimes even incurring
significant financial losses. Phasing through master planning
can prevent overdevelopment as it addresses key aspects
such as available financial resources and thoughtfully planned
scheduling. Strategic phasing enables the development that
is gradual: supplying as the demand occurs.
A project is underdeveloped if the site is not put to best
and most appropriate use, and thus fails to realize its full
potential. In this case, the master planning exercise can help
determine the maximum possible development by taking into
consideration both positive and negative impacts of zoning
and building ordinances, and by analyzing a site’s strengths
and weaknesses. A prudent developer may seek a feasibility
study to understand the nature of market demand in this
case. Also, no two investors have the same appetite for risk.
Some dare to invest aggressively, others invest conservatively.
Economic conditions also suggest whether phased development
might be appropriate. Lower inflation marked by lower
material and labor costs tempts some developers to complete
projects in a single phase. Hence, a market analysis backed
by a well-conceived master plan only helps to turn critical
economic challenges into viable decisions.
Not all markets are predictable. Developers can best take
advantage of master planning to assess the financial viability
of their development by beginning with a soft launch. By releasing
a small portion of a development to market early and
testing the product, the developer will have a clear sense of
the market demand, allowing the possibility to pivot the development
strategy if necessary, thereby avoiding over- and
underdevelopment.
Create a Cohesive Sense of Place
The intangible benefits of master planning can increase the
success of a development. Common design controls developed
during master planning can help make a large-scale
project a seamless experience by arranging buildings into a
coherent pattern irrespective of the phase in which they are
built. Urban design guidelines enhance the place-making experience
by specifying aesthetic characteristics. Programmatic
requirements backed by a unifying aesthetic have proved to
work as a magnet and a selling point in many successful real
estate ventures around the world.
Keep the Plan Responsive and Flexible
Long-drawn planning projects bear the brunt of ever-evolving
market conditions. Large-scale projects span over a number
of years and evolve through constantly changing social,
economic, and political conditions. For that reason, it is wise
to consider periodic updates to the master plan in order to
study the suitability of the original program against present
circumstances.
For all these reasons, developers are well advised to select
architects and planners that can integrate the expertise of
planning, urban design, architectural design, and environmental
design to deliver a master plan that helps clients to set
up pragmatic and achievable financial goals. The master plan
is a crucial first step to ensure the success of any site and, by
extension, the vibrancy of the Pittsburgh region.
Nitin Desai is a registered architect at AE7 Pittsburgh. He has
worked on numerous building types and master plans of all