Built Up: An Historical Perspective on the Contemporary Principles and Practices of Real Estate Development

Description

Built Up uncovers the roots of the global real estate industry in the machinations of a patron of Shakespeare, the merged lineages of business savvy women and men, startlingly innovative collaborations with the first English architect, and the radical explorations of other denizens of early modern London – and what those colorful origins mean for the practice of property development today. Uniting insights from the author’s career as an internationally recognized developer with meticulous archival research, this resource for scholars and professionals synthesizes economic history and the latest planning and finance literature. The result is an unprecedented effort to codify the principles and activities of real estate development as a foundation for future academic research and practical innovation. By tracing the evolution of property development to its earliest days, Built Up establishes the theoretical groundwork for the next phase in the transformation of the urban environment. Cover Half Title Endorsements Title Page Copyright Page Dedication Table of contents Figures Preface Acknowledgments Introduction Evaluating the Urban Development Process Approach of this Book: Learning from History Narrative Methodology Historical Methodology Methodology of Critique Reaching across Disciplines and Ideologies Outline of this Exploration Part I: Historical Foundations for Urban Innovation Part II: The Birth of Modern Property Development Part III: Property Development Reframed: Theory, Principles, and Models Historical Timeframe Objectives of the Book Part I Historical Foundations for Urban Innovation Chapter 1 Land Ownership, Control, and Use Definition of Real Property and the Classical Conception of Ownership Political Power, Social Symbolism, and Responsibility Property Rights and Governance Modifications under Norman Rule Recorded Land Economics Land Equity (for some) and the Magna Carta The Influence of Religion on Attitudes to Private Property Private Property and Secular Laws Inheritance and Primogeniture Land Leases Rising Commerce and Land Laws Mortgages and Property Rights Land and Societal Power The Threat to the Commons A Changing Philosophy for Urban Land Chapter 2 Economic Concepts of Real Property and its Measurement Rent The Economic Value of Land Extracting Value from Land Dissolution of the Monasteries Advances in the Valuation of Real Property The Valuation of Land Use Net Income from Land The Potential and Residual Value of Land Land Definition and Measurement Capital and Land Elizabeth I Expands Trade and Commerce Further Economic Abstraction and “Financialization” Capital Markets for Real Estate Investment Returns on Land Advancing Mortgage Law Chapter 3 The Rise of London The Evolution of English Towns An Early English Real Estate Developer! The City of London Changing Economic and Topographical Features of Growing London English Trade to English Business Centered on London London’s Population Explosion of the 17th Century London’s Commerce Arising The Housing Crisis within the City Westward Migration Governance Importance of the Commons in the Metropolis A New Approach to Controlling Growth Inigo Jones Jones’s Early Career The Stuart Kings Prescribe Building Quality The Plague, the Great Fire, and Controlling Growth, Again The Great Fire of 1666 Increased Housing Demand in the Western Suburbs Rebuilding Regulations Building for the Public Benefit Increased Funding for Real Estate Chapter 4 Improvements to the Land: A Modern Production Activity Growing Interest in Private Real Property The Breadth of the Entrepreneurial Spirit Extending Investment Calculations for Development Complexity in the Value of Improvements Ownership and Its Benefits Economic Consumption Residual Value of the Improvements Change of Land Use Apportionment of the Economic Uplift by Change of Use The “Highest and Best Use” of Land Investment Returns on Development Projects Equity Capital for Real Estate Development Distribution of Investment Returns Private Urban Development The Rise of the Speculative Developer Definition of the Activity Master Builders Individual Leadership of the Real Estate Development Process Builder-developers William Newton: Great Queen Street Part II Birth of the Modern Property Development Business Chapter 5 The Modern Developer: Russell Developers Create Buildings and Places John Russell, 1st Earl of Bedford (1485–1555) The Covent Garden Estate The 2nd Earl of Bedford The 3rd Earl of Bedford Francis Russell, 4th Earl of Bedford (1593–1641) Development Activity Commences Overcoming Building Restrictions Architect for Covent Garden Plan of Covent Garden The Public Piazza Further Public Amenities to “Sweeten” the Deal The Residential Buildings Model Houses Market-oriented Housing Product Resolving Further Legal Problems of Development Project Oversight Quality Control and Compliance Slip-ups in Project Oversight Project Management Skills and Structure Quality over the Long Term and Economic Implications Importance of the Contribution to Infrastructure Social Infrastructure Marketplace Financial Strategy Lease or Sell Housing Lots Contribution of Covent Garden to the Growing Metropolis The Interregnum William Russell, 5th Earl of Bedford (1613–1700) The Restoration Rising Commercial Activity Russell Street Further Troubles at Court Chapter 6 The Other Modern Developer: Wriothesley Thomas Wriothesley, 1st Earl of Southampton (1505–1550) Wriothesley’s Gain: Title and Territory The Bloomsbury Estate Henry Wriothesley, 2nd Earl of Southampton (1545–1580) Henry Wriothesley, 3rd Earl of Southampton (1573–1624) Shakespeare’s Patron Commencing His Business Ventures Business Activities and Involvement in the New World Southampton House Developing the Bloomsbury Estate James’s Troubles Thomas Wriothesley, 4th Earl of Southampton (1607–1667) The Interregnum The Restoration Bloomsbury Square Petition for the Building License Housing Product Quality Control Development Progress Long-term Planning and Lease Tenure Role of Agent for Real Estate Business Infrastructure Commercial Activities Social Status Amalgamation of London Land Estates: Southampton and Bedford Trust Structure for Estates Rachel Wriothesley Inherits Continued Development of Bloomsbury Russell Family Succession Russell Executed The Joint Lineage Chapter 7 The Ultimate Speculative Developer: Barbon Nicholas Barbon (1637–1698) “Needs must” Beginnings The Speculative Development Business Essex Street Evolving towards Inclusion of the Public Realm Temple Building Red Lion Square Advancing the Business Model House Typology Production Process Formulated Lease Innovations Standardization of Leases Innovative Funding Other Financial and Economic Endeavors Advances in the Valuation of Real Property Importance of Location In Support of Urban Development Market Analysis Other Credit Vehicles Reducing Property Risk with Fire Insurance The Promoter Lack of Concern for Public Impact Over-extension Personal Characteristics Chapter 8 Consolidating the New Private Urban Development Model More Aristocratic Residential Squares St James’s Square Public Place Master Builders’ Urban Development Projects William Newton’s Lincoln Inn Fields Richard Frith Soho Square: The Residential Square Format Frith Street: Applying Inigo Jones’s Urban Residence Design Thomas Neale Seven Dials: A Unique Format Setting the Course for London’s Continued Development Funding Progress The Network for Development The Provinces and Resorts Social Acceptance of the Property Businessman Part III Property Development Reframed: Theory, Principles, and Models Chapter 9 The Model Formulated! Towards a Model of Private Real Estate Development Early Objectives Key Objectives of the Model Processes Land Use and Control Control of the Land Value of the Land and its Use Highest and Best Use Consent to Change of Use Principles Regarding Land Use and Improvements Buildings Spatial Layout Detailed Programming Specifically for the Market Design Quality and Economic Returns Urban Layout and Public Contribution Production of Buildings Minor Construction Advances General Contractor or Project Manager Building for the Life Cycle Principles Regarding Buildings Funding the Project and Creating Financial Products Building Leases for Development Activity Debt for Development Equity for Development Developer’s Promote Development Budget Methodology Investment Returns Return on Capital Speculation on Rising Prices Principles for Funding Decisions Equity Debt Calculative Methods Valuation Capital Management and Business Liquidity Contributing to the Public Realm Engagement with Government Public Square and Urban Topography Operation and Maintenance of the Public Realm Principles for Development and the Public Realm Definition of Real Estate Development Development Process as a Business Model Towards Model Formulation Organization and Strategy Features Family Ownership The Entrepreneur Social Networks and Cooperation Chapter 10 The Theoretical Schism in Urban Development Scholarship Mainstream Economics Urban Theory Models of Economic Activities Current Practice and its Theoretical Formulation Review of Real Estate Development Theory General Categories of Theoretical Models Economic Models Neoclassical Equilibrium Models and Financial Analysis Neo-Marxist Economic Model Globalization and Capital Quantum Financialization Model Action Models The Sequential Process Model The Provision Model The Cyclical Model Agency Models Individualist Approach Hybrid Agency and Sequence Model Multiple Actors Models Production or Structural Models A Production Process within a Business System Reframing Scholarship on the Real Estate Development Process Chapter 11 Critique of the Private Urban Development Process Towards a Framework of Evaluation The Objectives of the Real Estate Development Process A Hierarchy in the Importance of Objectives Satisfying Objectives Financial Objectives Funding the Development Process Debt Equity Funding the Longer-term Investment Asset Developer Liquidity The Social Aspects of the Financial Needs The Production of Shelter Building Trades The Need for Scale Complex Development Schemes Production Organization and Management Production Efficiency Design Innovation and Quality The Rise of the Architect Integration in the Urban Context Satisfying Customers Advancing the Theoretical Model of Production Community Impact The Intertwined Social and Economic Urban Context Governance: Early Planning Approvals and Restrictions Public Needs in Urban Development Private Provision of Public Amenities Funding to Maintain the Public Realm Functional Interdependence in Urban Development Social Considerations Social Equity in the Public Realm Community Engagement Urban Topography Real Estate Financial Analysis to Include the Community Context Symbiosis of the Community, the Public Realm, and Private Property Critique of the Business Format Business Activities Market Management Industry Affiliations General Management versus Entrepreneurial Leadership Conclusion Why It Exists: Its Objectives Providing Shelter Providing Investment Assets The Urban Topography and Community Amenities Management of the Development Process Hierarchy of Objectives How it Works: The Process Principles of Production Evaluations and Feedback Evaluation during the Process Industry Self-evaluation A Discipline and its Education From Past Achievements to Future Progress References Primary Sources Secondary Sources Reference of Figures Index