During which phase of the real estate asset life cycle is municipal approval obtained?

Municipal approval is typically obtained during the land acquisition and development phase of the real estate asset life cycle. This phase involves securing the necessary permissions and permits from local authorities to begin a project. The process often includes submitting plans for review, addressing zoning requirements, obtaining environmental assessments, and ensuring compliance with building codes and regulations. Gaining municipal approval is crucial because it validates the project’s alignment with community development plans and legal requirements.

The project analysis phase primarily focuses on evaluating the feasibility and potential return on investment of the project before proceeding with land acquisition. It does not involve the formal process of obtaining municipal approvals as this takes place afterward.

In the operations and asset management phase, the focus shifts to managing the property once it is built and operational, which does not include the approval process.

Similarly, while building construction involves physical development activity, municipal approvals must be secured beforehand to ensure that construction can proceed legally and effectively. Therefore, the correct phase for obtaining municipal approval is clearly during land acquisition and development.