What Landlords Need to Know Before Signing with a Developer

ASK:

I own property and a developer wants to build on it. What should I watch out for before signing anything?

ANSWER:

Partnering with a developer can unlock tremendous value, but it also introduces complexity. Developers bring expertise, financing, and vision, but they also bring risk.

At I&D Consulting, we help provide landlords with clarity to navigate development partnerships so you gain value without losing control.

Key Considerations for Landlords

Understand the Development Timeline
Development is a marathon, not a sprint. Entitlements, permits, and construction can take years. Make sure your agreement accounts for that reality.
Clarify Who Pays for What
Spell out who funds feasibility, entitlements, infrastructure, and vertical construction. Ambiguity here leads to conflict later.
Retain Visibility and Protections

Landlords should receive regular reporting, access to financials, and approval rights for major project decisions that affect long-term value.

Negotiate Clear Exit Options
If entitlements fail or financing falls through, you need a way to regain control of your property. Termination clauses and reversion rights protect you.

Why Developers Need You

Developers value landowners who are flexible, engaged, and aligned. By understanding the process and negotiating fairly, you position yourself as a long-term partner not a passive participant.

KEY TAKEAWAYS:

Know the timeline and risks before signing.
Define cost responsibilities and reporting requirements.
Protect yourself with clear exit options and reversion rights.