Land Planning with the Market in MindNOT ALL MASTER PLANS ARE CREATED EQUAL because market-driven plans meet the individual needs of specific people and places.

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eVolume 2 Issue 5

As builders move to outlying areas to aquire land, it’s even more critical to consider the marketing constraints and opportunities. This proposed plan mixes single family, duplexes, and townhomes to meet the market demand.

This issue focuses on how to

create master plans that respond

to what the market wants. It

serves as the first in a series

where BSB will discuss the land

planning process.

Some master plans attempt to

achieve an “ideal community”

that’s just an abstract vision with

some vague concepts derived

from guidelines from the local

planning commission or a

popular planning trend. These

master plans may have some

attractive components but they

may be missing opportunities to

maximize both the profitability

and the absorption rate of the

development. Bringing a market

consultant on board to work with

the land planning team from the

onset of the process ensures that

a master plan will meet the needs

of potential buyers.

BSB’s Bill Crump explains that

hiring a market consultant helps

the master plan team identify

market-driven opportunities and

provides an essential analysis of

what the competition is doing.

He adds that having market

research allows you to “tap into

potential buyers’ minds” and

anticipate what they will look for

in a new community. The market

consultant’s participation in the

BSB consultation process adds

a key component that creates

synergy among the members

of the team as everyone

brainstorms ideas to respond to

buyers’ needs.

“Getting the consultant

in the mix helps clients feel

comfortable,” says Crump.

“They know that the plan is

being driven by the needs of

the buyers and the homes in

the community are positioned

to maximize the financial return

throughout the course of the

development’s buildout.”

BSB’s Terry Smith agrees that

it’s important to include a market

consultant on the master plan

team, especially since more

builders and developers often

have to go out to unfamiliar,

outlying areas to find land.

He says that you need

someone with marketing

expertise who’s familiar with the

area to give you specific data,

not just boilerplate information.

In addition, there’s often a

“disconnect” between what a

city wants and what’s

In addition to providing invaluable information relative to the proposed product mix on a project, market consultants will also take an active role in defining the scope of recreational amenities as seen in this proposed residential community in Oswego, IL. The types of uses offered in the club center are a direct reflection of the buyers, which are mostly families. However, the plan also incorporates a separate “adults only” pool and deck to appeal to active adult buyers in the community.

economically saleable.

“City planners are often

overzealous,” explains Smith,

“in pursuing only those

mixed-use developments that

combine residential over retail,

otherwise known as vertical

mixed-use developments. If

built in the wrong area, such a

project may be difficult to sell

(residential) and lease (retail).”

Smith adds that the concept

of mixed-use invariably makes

good sense but developers

need to be careful in choosing

which form: vertical or

horizontal (where residential

and commercial uses appear in

separate stand-alone buildings).

A market consultant can help

determine the form that’s most

appropriate for the market.

In a scenario where there’s

retail on the ground level and

residences above, one or

the other might not work and

that makes the whole project

unsuccessful because the two

components thrive on each

other. However, bringing in

a market consultant to assess

the risks and analyze the

opportunities could change a

project’s outlook. Instead of

building for-sale units above

retail, the market research may

predict that a rental product

would fair better in the market.

The actual information

provided by a market

consultant varies with each

project but usually includes

identifying the target market

and making recommendations

regarding the following:

· square footage of units

· product type

· lot size

· starting price points

· amenities.

Crump says that having

these insights “allows us to

be more effective as master

planners because we are being

responsive to buyers’ needs

while helping clients to have

a master plan that’s geared

specifically to their buyers.”

The process to create a

market-driven master plan

The Benefits of Having a Market Consultant on the Master Plan Team

BSB worked with Townley

Larzelere, president of The

Whitney Group, to ensure

the proposed site plan for

Copper Canyon (shown

left) addresses the market’s

specific needs.

The challenge at Copper

Canyon was to identify and

address a wide range of

target buyers. The Whitney

Group identified multiple

product types and matched

them with the needs and

budget of the various

market segments.

The team worked

together to determine

the best location for each

neighborhood and amenities

such as the extensive trail

system, “lifestyle” retail

center, and spa/club

facilities.

Larzelere says using a

market consultant “provides

a cheap form of insurance

by offering a third set of

eyes with no emotional

attachment.”

begins by simply recognizing

that the people in a community

will make or break a

development’s success. We’re

not just talking about the people

who will choose to live there but

the people who already live in

the area as well. How existing

residents react to a new master

plan can influence the approval

process. The true measure of

success isn’t how quickly the

homes sell out, but whether or

not buyers are happy enough to

stay in a community instead of

moving somewhere else.

Market-driven master plans

also acknowledge that as a

community’s needs evolve, the

definition of the “best use” for

land may change too.

For this reason, many market

research consultants advise

planners to build some flexibility

into a master plan so land uses

can change and evolve with the

community. This allows residents

(instead of the developer or city)

to determine the “best use” of

land to fit their needs.

For example, a master plan

could designate open space in

each neighborhood to be

The plan for Copper Canyon in Sparks, NV, proposes a “smart” development with a commercial center and different housing types. Renderings by Milo Olea, Olea Design Studio.

(Above and left) One of the goals in designing the site plan for Copper Canyon was to create a “favorable first impression.” The community’s entry focuses on a rock and waterfall feature to distinguish the residential area from the commercial development.

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Land Planning with the Market in Mind

Bill Crump, ASLA, is Land Planning Director Western Region and Terry Smith, ASLA, is Director of Land Planning Chicago Region.

developed as the homeowners

see fit. A street full of young

families might want to build a

small tot lot or a basketball

court while the empty nesters on

the next block would prefer a

pocket park with a few benches.

Instead of giving everyone the

same thing, market-driven master

plans give residents what they

want and keep them from going

elsewhere to find a place that

better suits them.

“Having a market consultant

on board ensures that money

isn’t left on the table and that

the master planners understand

the needs of the buyers so

that the master developer can

move forward with confidence,”

concludes Crump.

This proposed plan for a 7-acre infill site addresses many of the target market‘s needs by mixing uses to offer 140 luxury one- and two-bedroom units in a landscaped environment with the convenience of having a drive-through bank and retail nearby.