This is what happens to real estate projects that don\u2019t follow key project management principles \u2014 in this case, when there\u2019s hardly any proper planning at all.<\/p>\n\n\n\n
It\u2019s high time you took your project management efforts to a whole new level.<\/p>\n\n\n\n
So, let\u2019s see what real estate project management is all about, its types, benefits, challenges \u2014 and what you need to become an incredible real estate project manager.<\/p>\n\n\n
![\"Real](\"https:\/\/plaky.com\/blog\/wp-content\/uploads\/2024\/10\/Real-estate-project-management-cover.png\")
<\/figure>\n<\/div>\n\n\nWhat is project management in real estate?<\/h2>\n\n\n\n
Real estate project management means just that \u2014 using project management principles to manage real estate projects.<\/strong><\/p>\n\n\n\n This means managing the project schedule, budget, and quality, as well as ensuring that execution runs smoothly and yields all project deliverables<\/a> on time.<\/p>\n\n\n\n Fittingly enough, project management was originally developed for the construction industry. <\/p>\n\n\n\n Real estate endeavors are often enormous in project scope<\/a>. Statista’s research published in May 2022 shows that the average construction time for residential buildings<\/a> in the US is 7.2 months. During that time, the project goes through many phases, resources, tasks, etc.<\/p>\n\n\n\n For example, for a residential building, you need to determine the funds and location before even starting the project. Then, you need to see whether the building would be breaking any regulations and acquire all the necessary permits \u2014 and you still haven\u2019t even laid one brick<\/em>.<\/p>\n\n\n\n Once development begins, you need to coordinate the workers\u2019 schedules and resource allocation<\/a> so that construction goes by smoothly.<\/p>\n\n\n\n So, the sheer size of these projects demands you have an experienced project manager.<\/p>\n\n\n\n Try Plaky for project management<\/a><\/p>\n\n\n\n The main responsibilities of a real estate project manager include:<\/p>\n\n\n\n Get an all-in-one solution for your project management. With the CAKE.com Bundle, you get access to Plaky (PM software), Pumble (business communication app), and Clockify (time-tracking tool). All for $12.99\/user\/month.<\/p>\n Now that you know the responsibilities of a real estate project manager, how can you get to that job position?<\/p>\n\n\n\n For most real estate project management jobs, a bachelor’s degree in real estate (or a related field) is required. Another qualification that will boost your chances of getting that job is the PMP certification<\/a>. <\/p>\n\n\n\n In addition to this, there are many real estate project management courses you can attend. <\/p>\n\n\n\n For example, the eCornell managing real estate development projects<\/a> course can lead you into real estate development. IREM (Institute of Real Estate Management) also offers a real estate PM course<\/a>.<\/p>\n\n\n\n Lastly, UCLA has both a Project Management Certificate Program<\/a> as well as a Real Estate Development, Construction, and Management<\/a> course.<\/p>\n\n\n\n But, like with most industries, at first, you might work in entry-level positions \u2014 such as a real estate agent. These positions are a gateway into the industry, as well as a way to gain some real experience.<\/p>\n\n\n\n There are 2 main types of real estate projects: <\/p>\n\n\n\n We\u2019ll explain each below.<\/p>\n\n\n\n Acquisition projects focus on acquiring commercial property for development. <\/strong><\/p>\n\n\n\n Now, you might be wondering, isn\u2019t that just the beginning of a development project? Yes and no.<\/p>\n\n\n\n While it is necessary to begin development, the acquisition process is so complex that it can be considered a project on its own. <\/p>\n\n\n\n An outside contractor might also hire a real estate company specifically to handle the acquisition of property, making it its own project.<\/p>\n\n\n\n Development projects focus mainly on the construction of real estate. <\/strong><\/p>\n\n\n\n They can range from anything as basic as a residential building to complex niches such as medical facilities and factories. <\/p>\n\n\n\n A real estate PM might even be hired for an interior remodeling project, which is also considered a type of construction. <\/p>\n\n\n\n Development projects can further be divided into: <\/p>\n\n\n\n Greenfield projects are development projects run on undeveloped land. <\/strong><\/p>\n\n\n\n Ever noticed an undeveloped, empty plot of land or a field in your neighborhood? That is a prime target for a greenfield development project. <\/p>\n\n\n\n These projects are usually more expensive, as you have to not only acquire the property but also start development from scratch. As you can imagine, the process is time-consuming.<\/p>\n\n\n\n However, greenfield land gives way to plenty of flexibility. If there\u2019s nothing there, you can create whatever you want. The project itself is in your control, allowing you to easily comply with any safety requirements from the start.<\/p>\n\n\n\n Brownfield real estate development focuses on bringing life to already existing, often abandoned buildings.<\/strong><\/p>\n\n\n\n There\u2019s probably a skeleton of an unfinished building somewhere in your neighborhood. That skeleton can be utilized in brownfield development.<\/p>\n\n\n\n As the opposite of greenfield in many ways, brownfield projects have lower development costs, as someone else has already started the work for you. Consequently, they also take less time to complete.<\/p>\n\n\n\n That said, in brownfield projects, you are constrained by the properties of the already existing structures. You must also remember there’s probably a reason someone else abandoned that project. It might be in a poor location, or it didn\u2019t meet an expected standard. <\/p>\n\n\n\n A real estate development project can be divided into 5 project phases<\/a>: <\/p>\n\n\n\n Without project management, every project is doomed to failure. But what is it about real estate development that requires a project manager? <\/p>\n\n\n\n Real estate development often involves large investments, and mishandling such an expensive project can have disastrous results. So, a skilled professional is needed to oversee schedules, reports, and government regulations that will ensure the project\u2019s success.<\/p>\n\n\n\n The main benefits of using project management in real estate include:<\/p>\n\n\n\n You might get hired by a real estate owner to develop, manage, and market their project. Conversely, you could be hired by a real estate developer to manage and market a project. <\/p>\n\n\n\n In either case, a project manager is responsible for client satisfaction. While overseeing the project, the PM will send project status reports<\/a> to the client, keeping them in the loop and satisfied. <\/p>\n\n\n\n The communication between the project manager and the client will also ensure that all requests that a client makes are taken into account. To this end, the PM will:<\/p>\n\n\n\n The project manager will ensure that every project phase is completed on schedule and within the appropriate budget. <\/p>\n\n\n\n The responsibility of the initiation and research phases often falls on the project manager. They have to handle site selection and budget acquisition in the initiation phase. <\/p>\n\n\n\n In the research phase, the project manager is often the one who conducts a feasibility study too. Further, the PM will provide oversight during the development and marketing phases of the project.<\/p>\n\n\n\n This means that project management is necessary and brings benefits throughout every phase of the project<\/strong>.<\/p>\n\n\n\n Keep track of your project’s progress in Plaky<\/a><\/p>\n\n\n\n As they oversee the project, PMs have an exceptional insight into the potential project risks<\/a> it might run into. <\/p>\n\n\n\n During the feasibility study, a PM will conduct a risk analysis, predicting possible issues that might pop up throughout the project. They will also collaborate with the team to create contingency plans for these risks, meaning that \u2014 assuming the risks occur \u2014 a solution will already be prepared.<\/p>\n\n\n\n But, proper project risk management<\/a> doesn\u2019t lose sight of risks right after the research phase. <\/p>\n\n\n\n During the whole project, a PM will analyze budget and schedule overruns. They will also make sure that the project remains on track if there are any schedule issues.<\/p>\n\n\n\n \ud83d\udca1 Plaky Pro Tip<\/strong><\/p>\n\n\n\n If you want to learn more about solving cost overruns, check out this helpful guide:<\/p>\n\n\n\n Real estate is a complicated area, so you\u2019ll run into plenty of challenges while managing it.<\/p>\n\n\n\n We\u2019ve listed some regularly encountered challenges below, along with ways to overcome them.<\/p>\n\n\n\n To tackle these challenges, we\u2019ve consulted a couple of experts. One of them \u2014 Cam Dowski \u2014 is an expert in the real estate field. <\/p>\n\n\n\n With more than 16 years in the business, he has seen his fair share of challenges, but he specifically highlights the difficulty of accurately predicting costs: <\/p>\n\n\n\n \u201cDue to several macroeconomic factors, the uncertainty in the real estate sector continues to loom. This affects the ability to accurately project the overall cost of a project, which could mean the loss of money or the inability to complete a project within the stipulated time frame, if at all it is completed. This factor also affects access to capital to fund the project.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n This challenge affects your project through an unexpected development in your project environment<\/a>. It could be a sudden increase in energy prices or suppliers running thin on materials you need. <\/p>\n\n\n\n In turn, this makes it difficult to predict the funds needed for your project. In the worst-case scenario, your project might be halted due to the inability to acquire certain materials. <\/p>\n\n\n\n Cam has spoken to us about his experience with solving this issue:<\/p>\n\n\n\n \u201cIn order to overcome this, I have found that it is always important to include funds that can cater for uncertainties and some as a kind of contingency fund in the event that macroeconomic factors do not play out in your favor.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n An important step is making sure price changes cannot put your project on hold while you look for additional funds. <\/p>\n\n\n\n So, it\u2019s always best to have a contingency fund \u2014 a fund that will only be utilized in case of sudden, unforeseen shifts in the price of development.<\/p>\n\n\n\n \ud83d\udca1 Plaky Pro Tip<\/strong><\/p>\n\n\n\n If you want to learn more about project finance management, check out this guide: <\/p>\n\n\n\n Legal matters are always complex in their own right, and that complexity can easily create issues in your real estate project.<\/p>\n\n\n\n Another expert we\u2019ve spoken to, Jon Sanborn<\/a>, the co-founder of 2 real estate agencies, has mentioned some legal issues you may run into as a real estate project manager:<\/p>\n\n\n\n \u201cReal estate projects can involve a range of legal issues related to zoning laws, contracts, and property rights.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n Contract disputes, for example, can happen over the negotiated price of a property. If either party believes that the contract terms were misinterpreted or breached, a dispute can occur.<\/p>\n\n\n\n More legal issues can arise from state and local regulations, safety requirements, and project permits. Permits are required for basically everything in your project, from new construction to electrical repair.<\/p>\n\n\n\n Jon listed some of the most important regulations you need to follow:<\/p>\n\n\n\n \u201cWhen developing a real estate project, developers must adhere to a variety of regulations. These include environmental regulations, building codes, and local zoning ordinances.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n Jon\u2019s advice for preventing legal issues is to get help from a lawyer:<\/p>\n\n\n\n \u201cYou may need to hire a real estate lawyer to ensure that your project is in compliance with all relevant laws. Additionally, you should be aware of any potential disputes that may arise throughout the course of the project and prepare for them accordingly.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n A person with experience and skills in the real estate legal department will best determine what risks your project will face and how to overcome them.<\/p>\n\n\n\n Alternatively, look into ways you can improve your feasibility study. This is where you should determine all legal requirements. If something has slipped past you, it was due to lackluster research.<\/p>\n\n\n\n For regulations and permits, Jon advises to always consult a professional:<\/p>\n\n\n\n \u201cTo ensure compliance, you may need to consult with experts and secure the necessary permits or approvals before starting your project.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n Sign up for Plaky today<\/a><\/p>\n\n\n\n Construction is a very risky line of work, so naturally, you want to make sure that your project team is working in conditions of maximum safety.<\/p>\n\n\n\n You want to account for the many types of injuries that might happen throughout development, like:<\/p>\n\n\n\n Having a safe environment for your team is firstly an ethical issue. That said, it also prevents unexpected delays due to workplace injuries. <\/p>\n\n\n\n PPE \u2014 personal protective equipment \u2014 is, quite literally, a lifesaver in construction projects. So, make sure all team members are supplied with and using their protective equipment.<\/p>\n\n\n\n Safety signs are also highly important. Falling debris and high voltage notifications are important both for your team and for any oncoming passers-by.<\/p>\n\n\n\n Just like personal safety equipment is necessary, construction equipment must adhere to safety standards and be well maintained. After all, malfunctioning equipment can lead to devastating accidents.<\/p>\n\n\n\n Another thing you could do is hold safety meetings, training sessions, and regular safety inspections to make sure that everything is on par with your safety expectations.<\/p>\n\n\n\n \ud83d\udca1 Plaky Pro Tip<\/strong><\/p>\n\n\n\n What\u2019s the secret to successful project management for construction projects? Learn in our article below:<\/p>\n\n\n\n And finally, here are some tips to help you become a better real estate project manager.<\/p>\n\n\n\n As a project manager, you are the connection between the outside contractors and your project team<\/a>. So, it is your duty to maintain a good relationship with contractors, as well as to accurately translate their requirements to the team.<\/p>\n\n\n\n There will also be times when the stakeholder\u2019s wishes are not feasible for the team or the project, whether due to project budget<\/a> limitations, execution difficulty, or physical restrictions. <\/p>\n\n\n\n In these situations, it\u2019s your responsibility to find a compromise with the stakeholders, for example, by suggesting possible alternatives.<\/p>\n\n\n\n Communication, however, is not only limited to outside stakeholders. You\u2019re also responsible for communicating with the project team, making sure that the tasks are completed on time and according to quality standards.<\/p>\n\n\n\n Enhance team collaboration with Plaky<\/a><\/p>\n\n\n\n Real estate projects are often large-scale, with lots of moving parts, stages, and tasks.<\/p>\n\n\n\n Keeping track of all that would be difficult without a project management tool to help you keep all key information in one place.<\/p>\n\n\n\n In real estate, PM software is best used for:<\/p>\n\n\n\n In Plaky, you can create a board for each of these necessities, allowing you to access all information about your project\u2019s progress in just a couple of clicks.<\/p>\n\n\n Try Plaky by CAKE.com for free<\/a><\/p>\n\n\n\n Jon Sanborn also brought to our attention how important it is to consult experts in different fields:<\/p>\n\n\n\n \u201cReal estate projects require expertise in a variety of areas, such as law, construction, finance, and architecture. Therefore, it is essential to hire the right professionals for the project. This includes experienced contractors, architects, engineers, brokers, and lawyers who can help ensure that the project runs smoothly.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n No matter how skilled you are, it\u2019s impossible to be a jack of all trades. So, you will need to frequently consult with experts in the respective fields your project requires. <\/p>\n\n\n\n Even before you hire any of these experts, in the feasibility study, consulting them will ensure that all information you possess is accurate and comes from a reliable source.<\/p>\n\n\n\n As with any project that requires many moving parts, it\u2019s difficult to keep track of it all. <\/p>\n\n\n\n This especially holds true for real estate projects, as the scope can include tasks that just seem like smaller projects \u2014 a residential building may also need a driveway, an underground garage, and maybe even a playground next to it! <\/p>\n\n\n\n So, when keeping it in one place just isn\u2019t enough \u2014 you can use Plaky\u2019s subitems<\/a> to further divide tasks, both visually and functionally.<\/p>\n\n\n\n Sign up for Plaky by CAKE.com<\/a><\/p>\n\n\n\n Use subitems to tie in smaller tasks to one central task, basically sorting them. In larger projects like these, centering tasks around one deliverable makes it easier to:<\/p>\n\n\n\n In real estate, you also want to make sure you have a valid timeline.<\/p>\n\n\n\n You can check that timeline and make sure everything stays on course with Plaky\u2019s Gantt chart<\/a>. With one quick glance, both you and your team can get an overview of all tasks and <\/em>their progress throughout the project.<\/p>\n\n\n And last but not least, your team can use Plaky to improve their communication. This is especially important in real estate, as miscommunication can lead to delays at best, and even injuries at worst.<\/p>\n\n\n\n Luckily, with Plaky\u2019s task-specific comments and @mentions, as well as file sharing, you can easily keep your team in the loop \u2014 no matter how complex or unpredictable your project gets.<\/p>\n\n\n\nWhat does a real estate project manager do?<\/h2>\n\n\n\n
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![\"Plaky](\"https:\/\/plaky.com\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/bundle@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n\n\n \n\n\n\nHow to become a real estate project manager <\/h3>\n\n\n\n
Types of real estate projects<\/h2>\n\n\n\n
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Type #1: Acquisition projects <\/h3>\n\n\n\n
Type #2: Development projects<\/h3>\n\n\n\n
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Subtype #1: Greenfield projects<\/h4>\n\n\n\n
Subtype #2: Brownfield projects<\/h4>\n\n\n\n
Real estate project phases<\/h2>\n\n\n\n
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![\"Real](\"https:\/\/plaky.com\/blog\/wp-content\/uploads\/2023\/03\/Using-Plaky-to-track-real-estate-project-phases.png\")
Why is project management important in real estate?<\/h2>\n\n\n\n
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Benefit #1: Greater client satisfaction<\/h3>\n\n\n\n
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Benefit #2: Better oversight of project phases<\/h3>\n\n\n\n
Benefit #3: Risk aversion<\/h3>\n\n\n\n
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Common challenges in real estate projects <\/h2>\n\n\n\n
Challenge #1: Unexpected market developments<\/h3>\n\n\n\n
![\"Cam](\"https:\/\/plaky.com\/blog\/wp-content\/uploads\/2023\/03\/Cam-Dowski-headshot-min.png\")
<\/figure>\n<\/div>\n\n\n\nHow to overcome unexpected market developments<\/h4>\n\n\n\n
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Challenge #2: Legal issues<\/h3>\n\n\n\n
![\"Jon](\"https:\/\/plaky.com\/blog\/wp-content\/uploads\/2023\/03\/Jon-Sanborn-1.png\")
<\/figure>\n<\/div>\n\n\n\n<\/figure>\n<\/div>\n\n\n\nHow to overcome legal issues<\/h4>\n\n\n\n
<\/figure>\n<\/div>\n\n\n\n<\/figure>\n<\/div>\n\n\n\nChallenge #3: Construction injury risks<\/h3>\n\n\n\n
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How to overcome construction injury risks<\/h4>\n\n\n\n
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Tips to improve your real estate project management<\/h2>\n\n\n\n
Tip #1: Hone your communication skills <\/h3>\n\n\n\n
Tip #2: Track progress with real estate project management software<\/h3>\n\n\n\n
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![\"How](\"https:\/\/plaky.com\/blog\/wp-content\/uploads\/2023\/03\/Plaky-board-for-calculating-SPIs-in-a-real-estate-project.png\")
Tip #3: Hire and consult experts<\/h3>\n\n\n\n
<\/figure>\n<\/div>\n\n\n\nBoost your real estate projects with Plaky by CAKE.com<\/h2>\n\n\n\n
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![\"How](\"https:\/\/plaky.com\/blog\/wp-content\/uploads\/2023\/03\/Creating-subitems-in-Plaky.png\")
![\"Gantt](\"https:\/\/plaky.com\/blog\/wp-content\/uploads\/2023\/03\/Using-the-Gantt-view-in-Plaky.png\")