Subdivision is the process of taking a property, usually land, and splitting it into multiple parts for resale or development. This process can, under certain circumstances, allow developers to maximize the residual value of a property by adjusting the size of a space to fit what is most in demand in a given sub-market.

A similar effect can be achieved through the condominium process. This involves converting or building separate units into a single project that can be sold as stand-alone units with the aim of maximizing the sale price on a per square foot basis.

Net lease investors are more passive and generally prefer to avoid management or leasing intensive properties. This structure often attracts these types of Buyer's, who will very often pay a premium. However, utilizing this structure can be a complex undertaking that necessitates a solid understanding of the market, and there is no guarantee the end result will be accretive to a developer's return. That said, having the condo structure in place will always provide the developer more flexibility in the event of a sale as they can still sell the entire project as a whole if they want. We see it used most often in mixed use projects where different parts of the property have disparate uses (i.e. apartments and retail) and therefore likely different Buyer's in a sale.