Return On Engagement: Stakeholder-Driven Real Estate [Module 2]
SES 5452
Subject & Catalog Number
Course Information
Description
Across many U.S. cities, Planning Boards and City Councils rely on discretionary planning approvals to entitle most major real estate development projects — especially as many zoning codes and specific plans are not set up for “by-right” approval of large-site, multi-phased, and mixed-use proposals.
Planned Unit Developments (PUDs) and Project Development Agreements (PDAs) increasingly function not merely as regulatory tools, but as platforms for negotiating broader societal outcomes — including affordability, climate adaptation, infrastructure modernization, ecological preservation, and community wealth creation. Virtually all large-scale building and infrastructure proposals must navigate local approval reviews that incorporate public input.
Because the entitlement and approval process is often complex and uncertain, successfully securing approvals can create significant project value. For real estate developers working in major metro markets, the data overwhelmingly show that discretionary entitlement approvals create more asset value lift compared with other critical development tasks, such as securing construction and permanent financing, completing construction, or leasing space. Failing to navigate the discretionary approval process either kills projects or results in lower land value.
Discretionary approvals all entail formal physical and virtual outreach: to advocacy groups, community interests, elected officials, neighbors, the media, and the public at large. Managing this requires a strategic engagement framework that can bolster allies, mediate energized project opponents, and convey the larger message of why a project enhances community character and delivers public benefit. Moreover, community buy-in often solidifies project parameters to secure potential public and philanthropic capital funding, which may determine whether a project moves forward.
Through case studies and real-world examples, Stakeholder-Driven Real Estate teaches students how the people side of development may become the new “Return On Equity” - improving both the long-term financial returns and community benefits.
Class Notes
MRE students have prioritized enrollment in the Limited Enrollment Course Lottery. All MRE students who select this special MRE elective in the Lottery will be enrolled, with additional seats potentially available to other students.
Available for Harvard Cross Registration
