A well-structured development timeline for a commercial project must balance tenant delivery expectations with resale objectives, ensuring timely handover for occupancy while positioning the asset for maximum exit value. The ideal timeline accommodates design, approvals, construction, leasing, and transaction closure within a synchronized schedule, typically spanning 18 to 30 months, depending on project complexity and location.
1. Entitlement and Design Phase: 3–6 Months
- Complete zoning confirmation, land title clearance, and required layout or conversion approvals.
- Finalize architectural design aligned with tenant specifications (if build-to-suit) and future adaptability.
- Secure pre-approvals for water, power, sewage, and fire safety to avoid construction delays.
- Parallel execution of legal documentation and lease agreements enhances buyer confidence at exit.
2. Construction Period: 9–15 Months
- Timeline varies by asset type:
- Retail, single-storey commercial: 6–9 months
- Office, mixed-use, or BTS warehouse: 12–15 months
- Retail, single-storey commercial: 6–9 months
- Incorporate tenant-specific customization midway or during fit-out windows.
- Maintain flexibility in structural layout to accommodate different user types for future resale.
- Regular progress updates and milestone documentation support marketing and investor due diligence.
3. Fit-Out and Tenant Occupancy: 2–4 Months
- Allow 2–3 months post-shell completion for tenant fit-outs, inspection, and compliance.
- Ensure utilities, access, and fire clearance certificates are ready for handover.
- This phase aligns with rental commencement, strengthening resale valuation based on income flow.
- Early occupancy by anchor tenants improves investor visibility and exit timing.
4. Stabilization and Income Seasoning: 3–6 Months
- Institutional buyers prefer at least 2–3 quarters of lease operation to underwrite yield consistency.
- Secure rent payments, escalation clauses, and deposit terms during this phase.
- Address punch-list items and obtain final occupancy or completion certificates.
- Use this window to prepare valuation reports, lease abstracts, and marketing material for resale.
5. Resale and Exit Execution: 2–4 Months
- Target resale within 6–9 months post-tenant move-in, aligning with asset stabilization.
- Engage brokers, institutional investors, or REITs during the final stages of tenant delivery.
- Due diligence, valuation, negotiation, and registration can take 8–12 weeks.
- Ensure clean documentation, environmental clearances, and title updates for seamless transactions.
This structured development timeline—ranging from 18 to 30 months—provides the framework to meet tenant delivery deadlines while ensuring the asset reaches market with maximum rental and legal readiness, driving faster and more profitable resale outcomes.
