At a recent NAIOP Northern Virginia Developing Leaders Lunch & Learn, I participated in a panel discussion titled, “The Invisible Checklist: Due Diligence for Development.” NAIOP, the Commercial Real Estate Development Association, focuses on issues affecting commercial real estate development and ownership. The conversation centered on demystifying the unseen systems that make-or-break commercial real estate deals, particularly the early-stage evaluations that determine whether a project is feasible and what it will realistically take to get it built.

I’ve been involved with this group for 10 years, and the audience, comprised of roughly 80 professionals under age 35 working in construction, development, engineering, architecture, law, brokerage, and banking, was engaged in how projects are vetted before acquisition or development. That stage is where DRMP’s traffic impact analysis (TIA) and development due diligence expertise comes into play. Our team assists clients nationwide with traffic impact analyses, parking studies, and site feasibility evaluations. Our clients include national big-box retailers, quick service restaurant brands, automotive retail chains, as well as large private developers and institutional owners of other residential and mixed-use developments.

Before a site is purchased or fully designed, we help developers understand constraints, costs, and potential deal breakers at a high level. The goal is not to design the project in detail but to identify whether a site is viable and what major issues might affect feasibility, including impacts on cost and schedule.

Early Due Diligence and the 10,000-Foot View

From a traffic engineering perspective, early due diligence is about evaluating a site before commitments are made. I use the term “10,000-foot view” to describe the high-level perspective taken during early due diligence, before detailed design work begins. Developers often come to us during site selection with the question, “Can this work?”

At that stage, we provide a preliminary, experience-based assessment of what the site is likely to require from a transportation standpoint. This includes potential roadway improvements, traffic impacts, access constraints, and regulatory considerations that can significantly affect cost or design.

For example, if a proposed development requires a new traffic signal or major intersection improvements, that alone can represent a substantial cost, often in the range of hundreds of thousands of dollars. A single signal installation can approach $600,000 once design, construction, and coordination with agencies are included. Turn lanes, deceleration lanes, and driveway modifications can also significantly impact site layout and budget.

The intent is to surface these issues early so developers can evaluate whether a deal still makes sense before they are financially or legally committed to the property.

Consistency Across Markets

DRMP works with organizations evaluating dozens or even hundreds of sites in multiple states, requiring consistent, reliable analysis across markets. One advantage we provide is consistency. Because we operate in multiple regions in the country, we can deliver similar due diligence frameworks regardless of geography, allowing clients to compare sites using the same methodology and assumptions instead of adjusting to different consulting approaches in each market.

We regularly work with civil engineers, architects, and land-use attorneys, as part of the wider development team. Due diligence is rarely isolated to one discipline, and transportation is only one piece of a larger feasibility picture.

What We Evaluate Early On

Early due diligence also includes evaluating environmental conditions, utility availability, drainage, and soil composition before moving forward with a property. Certain soil conditions can significantly affect what can be built on a site and how much preparation may be required before construction begins.

Permitting and right-of-way are other major considerations. Site access alone can involve extensive coordination with local and state agencies, particularly when driveways, turn lanes, or roadway improvements are proposed.

While every site is different, early traffic due diligence typically focuses on a consistent set of elements:

• Site access and driveway feasibility, including spacing, sight distance, and permitting constraints
• Trip generation and overall traffic impact from the proposed use
• Turn lane and traffic signal warrant analysis
• Adjacent roadway conditions and planned improvements identified in long-range transportation plans
• Parking and zoning requirements tied to transportation standards
• Potential right-of-way impacts from future roadway widening or expansion projects
• Existing and new multimodal facilities, including pedestrian, bicycle, and transit

One of the most overlooked risks involves future roadway planning. If a corridor is scheduled for widening or improvement, part of a site may be taken for right-of-way. That can reduce buildable area and affect how the site is developed.

These considerations come from adopted comprehensive plans, agency standards, and established engineering practice.

Traffic Is Regulated, Not Open to Interpretation

A key point that emerged during the NAIOP panel is that traffic analysis is often more structured than people realize. While professional judgment plays a role, many outcomes are driven by established thresholds and regulatory requirements.

When a development generates a certain level of traffic that exceeds the threshold, it can result in required mitigation measures. Those typically include turn lanes, traffic signals, transportation demand management strategies, or access modifications. The role of the traffic engineer is to evaluate those impacts early and explain the implications for cost and design.

This is why early due diligence is less about interpretation and more about clarity. It helps define what will be required if the project moves forward and whether it should move forward at all. Through our long-term partnerships with our clients, we are able to understand their priorities on each project and provide them with guidance on how to best navigate the development process to fulfill required mitigation while maintaining their budgeted costs and schedule.

When these questions are addressed early, developers are better positioned to negotiate, design, and invest with confidence. When they are not, projects often encounter avoidable delays, redesigns, or unexpected costs later in the process.

At its best, due diligence functions as an invisible checklist, ensuring that the projects moving forward are the ones that truly make sense.