Real Estate Development - Coursework Example

Financing bodies in the central Manhattan promotes real estate development because they provide support to the investors. It is an expensive endeavor to pursue that discourages many investors and developers. However, financial assistance from organizations such as Meridian Capital Group and Hiro Real Estate enables people to invest in the industry. The paper discusses factors that drive commercial property development in Central Manhattan for the last six years. It also explains how bids play a significant role in acquiring and developing commercial buildings in the area.

Capital is an important factor in real estate development because it supports various activities. It is difficult to succeed in the real estate business without adequate finance. Inadequate capital keeps many people away from the business because they cannot finance different operations effectively. High demand for land in many areas increases its prices, which hinder many people from affording it. This shows the need to obtain financial support in order to acquire land develop a real estate.

An essential factor drives the development of commercial property in central Manhattan. Interested parties can obtain loans and mortgages from financial institutions such as banks in order to invest in real estate (Blosfield, 2015, p. 1). Land prices in the city are very high because of high demand, which makes it difficult to invest in the business. However, financial support such as mortgages and loans encourage many people to develop the property, which is a long-term investment. Financing bodies such as Morgan Stanley Mortgage Capital Holdings, Meridian Capital Group, Hiro Real Estate, and Eastdil Secured provide support to people (Kalinoski, 2014, p. 1). They encourage the public to invest heavily in the business because they give financial assistance to aid in implementing their projects.

The business has fewer risks, which encourage them to seek financial support because they can repay the