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

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