"Physical- Financial" Product and the Effects on Cost, Income, and Value
The physical- financial entity is a balance of two different components working towards the same common goal. Each one has their areas of focus and attributes to contribute to the project. If one has more influence than the other, an imbalance could occur and result in problems with the development and its success. The physical side must work with the architects, engineers, and construction team to create the schematic design and budget possibilities for the project in the predevelopment stage. This will include alternatives and rough preliminary designs. When the development moves over to the document development stage, they become responsible for the construction documents, budgeting, and schedules for the actual construction of the project. The financial side of the development involves the business side of the project. This is where the market and marketability studies will be conducted and various feasibility and investment analysis reports will be submitted. The financial entity of the development will continue to work through the predevelopment and document development stages to put forth the best suited analysis for the market, feasibility, and marketability studies.
The Physical side of the project contains two sectors: natural environment and urban linkages. Within the natural environment sector there is a focus on geology, soils, topography, climate and water, and plant/wildlife ecology. The urban linkage contains transportation, infrastructure, landuse and other regulations, and urban dynamics. The financial dimension of the model involves two sectors: space markets and money markets. Within the space ...