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Real Estate Development Plan Assignment Guidelines

Assignment prompts for a real estate development plan covering zoning, market research, pro forma, development costs, financing, cap rates, and risk.

Category: Finance

Uploaded by Megan Lawson on May 9, 2026

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Short answers, using bullet points; 5 pages or less; plus separate pages of maps, aerial photos and sources of information

Address of property

Site size (acres and land sq feet)

Current site use

Proposed development plan

- sq feet, parking, building use(s)

- Lot coverage and FAR

- Open space & landscaping

Current zoning

Proposed change in zoning

Market research supporting your plan,

Sub market vacancy, net absorption (2023) and new supply (2023 & 2004)

How does your plan implement

- Prospect & refuge

- Smart growth

- Placemaking

Estimated stabilized pro-forma and lease type (full service or triple net); show #'s

- Annual rent

- Stabilized occupancy level

- Other income (if any)

- Recurring expenses & taxes

- Reserves

- NOI

Estimated development costs

https://www.rsmeans.com/model-pages

- Inflate 2019 #'s at 5%/year

- Add 15% premium for Boston labor costs

- Add 15% of the total above for soft costs

How will you finance this development

- Debt vs equity

- Expected loan amount

- Interest rate

Exhibit of at least 4 rent comparables to validate your pro-forma rents

Estimated development costs

https://www.rsmeans.com/model-pages

- Inflate 2019 #'s at 5%/year

- Add 15% premium for Boston labor costs

- Add 15% of the total above for soft costs

How will you finance this development

- Debt vs equity

- Expected loan amount

- Interest rate

- Debt coverage on pro forma NOI

- Return on equity at stabilization

What is your target cap rate on costs?

What is your land price?

Show your calculations

What is the appraisal cap rate?

What is the estimated profit margin over costs

Show calculations

What will be your project management practices and procedures?

What are the reasons this is a good plan? What are the major risks How to mitigate them

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