This New Real Estate Development Technology Helps You Find the Optimal Design with the Highest Yield Faster

For real estate developers, determining if a land purchase will be profitable is a lot like trying to find the highest point of a pitch-black cave with nothing but a flashlight and a measuring stick.

The process starts with an architect’s design, which is really a stab in the dark. Should an apartment building have four stories or five? What’s the best programming or unit mix to maximize profit? There’s no way to know until a contractor works up a cost estimate, which the development team then evaluates against revenue projections. If the numbers don’t show a reasonable return on investment, it’s back to the drawing board.

This trial-and-error process can take months because architects don’t necessarily know which changes result in the most cost-effective design. They take another stab in the dark, maybe adding a floor or increasing the number of studios from 10% to 15%, which then requires another cost estimate and pro forma analysis. Design iterations and cost reruns continue until developers find a profitable design or run out of their pursuit budget and give up.

But imagine if they had a tool that could analyze hundreds of designs in just a few hours. It would be like having a powerful spotlight illuminate the entire cave and instantly reveal its highest point.

Zebel’s technology provides just such a solution. Our unique software has a simple user interface for inputting design parameters and historical cost data, then does all the necessary calculations and creates a refined cost estimate and pro forma. Since this automated process takes mere hours instead of weeks and months, developers can try different design iterations and increase the likelihood of finding one that makes a project financially viable. You can create a 3D-map of the project yield for different design options and quickly identify the optimal design with the highest yield.

Why stumble around in the dark with flashlights and measuring sticks when better tools are available? Visit www.zebel.io to learn more about how our software makes it easier to see the full picture of what’s possible on your next development project.