Downtown Developer Recruiting: What Communities Get Wrong

When downtown projects stall, the conclusion often sounds the same. 

“We just need to attract a developer.” 

Developer recruiting becomes the assumed solution to vacancies, underused buildings, and stalled ideas. It feels logical. Developers bring capital, experience, and execution capacity. 

But in many downtowns, the issue is not the absence of developer interest. It is a mismatch between what communities are offering and what development actually requires.

Why Developer Recruiting Gets Oversimplified

Developer recruiting is often framed like business recruitment. Create a pitch. Highlight incentives. Promote opportunity. Cast a wide net. 

That approach works better for businesses than it does for real estate. Developers do not lack ideas. They lack certainty. 

They are evaluating risk across:

  • construction cost

  • market demand

  • financing structure

  • regulatory timelines

  • ownership conditions 

When those factors are unclear, no amount of enthusiasm fills the gap.

The Most Common Misdiagnosis

Communities often believe developers are not interested because:

  • the market is too small

  • incentives are insufficient

  • the location lacks visibility 

In reality, developers walk away more often because:

  • projects are not financially feasible

  • entitlement processes are unpredictable

  • building conditions are worse than expected

  • timelines stretch beyond reasonable risk tolerance 

The issue is rarely interest. It is readiness.

What Developers Actually Look For

While every developer is different, most are scanning for the same fundamentals. 

They want to understand:

  • whether the numbers can work

  • how long approvals will take

  • who controls the site

  • what conditions are negotiable

  • whether expectations are realistic 

Communities that answer these questions clearly are far more attractive than those offering vague optimism.

Incentives Are Not the Starting Point

Incentives matter, but they are rarely decisive on their own. 

Incentives work best when:

  • the base deal is close to feasible

  • gaps are clearly defined

  • expectations are aligned early 

When incentives are used to compensate for unclear fundamentals, they create complexity without certainty. 

Developers prefer fewer incentives they can count on over many that are conditional or speculative.

Site Readiness Is Often Overestimated

Communities frequently market sites as “shovel-ready” when they are anything but. 

True readiness includes:

  • clear ownership and control

  • known building conditions

  • realistic use scenarios

  • zoning and code clarity

  • alignment among decision-makers 

When these elements are unresolved, developers spend time diagnosing problems communities assumed were solved. 

That diagnostic work costs money. Many developers simply move on.

The Risk of Over-Promising

Over-promising is one of the fastest ways to erode developer trust. 

This can include:

  • underestimating renovation costs

  • overstating demand

  • downplaying approval hurdles

  • implying flexibility that does not exist 

Even small misalignments early can signal deeper uncertainty later. 

Developers value honesty over ambition.

Why Fewer, Better Conversations Matter More Than More Leads

Successful developer recruiting is rarely about volume of leads. 

It is about:

  • targeting developers whose models fit the market

  • having fewer, more informed conversations

  • presenting opportunities with clarity

  • respecting developer time and risk 

Communities that treat developers as partners rather than prospects tend to see better outcomes.

What Downtown Organizations Can Do Instead

Downtown organizations are not developers, but they play a critical supporting role. 

They can:

  • help package realistic opportunity profiles

  • coordinate conversations across departments

  • clarify community priorities and constraints

  • manage expectations publicly

  • support owners through early feasibility steps 

Their value is often in reducing uncertainty, not selling opportunity.

How This Connects to Upper-Floor Housing and Vacancy

Developer recruiting failures often trace back to earlier assumptions. 

If:

  • building feasibility has not been tested

  • market demand is unclear

  • ownership expectations are misaligned

then recruiting developers simply surfaces those issues later, at higher cost. 

Recruiting works best after assessment, not instead of it.

The Takeaway

Downtowns do not attract developers by trying harder. They attract developers by being clearer. 

When communities focus on readiness, feasibility, and alignment, the right developers tend to find them. 

Developer recruiting is not about persuasion. It is about preparation.

Continue the series:
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