There are significant risks associated with development and redevelopment projects, including, but not limited to, the following
possibilities:
- We may not complete development or redevelopment projects on schedule or within budgeted amounts.
- We may be unable to lease development or redevelopment projects on schedule or within projected amounts.
- We may encounter project delays or cancellations due to unavailability of necessary labor and construction materials.
- We may expend funds on, and devote management’s time to, development and redevelopment projects that we may not
complete.
- We may abandon development or redevelopment projects after we begin to explore them, and as a result, we may lose
deposits or fail to recover costs already incurred.
- Market and economic conditions may deteriorate, which can result in lower-than-expected rental rates.
- We may face higher operating costs than we anticipated for development or redevelopment projects, including insurance
premiums, utilities, security, real estate taxes, and costs of complying with changes in government regulations or
increases in tariffs.
- We may face higher requirements for capital improvements than we anticipated for development or redevelopment
projects, particularly in older structures.
- We may be unable to proceed with development or redevelopment projects because we cannot obtain debt and/or equity
financing on favorable terms or at all.
- We may fail to retain tenants that have pre-leased our development or redevelopment projects if we do not complete the
construction of these properties in a timely manner or to the tenants’ specifications.
- Tenants that have pre-leased our development or redevelopment projects may file for bankruptcy or become insolvent, or
otherwise elect to terminate their lease prior to delivery, which may adversely affect the income produced by, and the
value of, our properties or require us to change the scope of the project, which may potentially result in higher construction
costs, significant project delays, or lower financial returns.
- We may encounter delays, refusals, unforeseen cost increases, and other impairments resulting from third-party litigation,
natural disasters, or severe weather conditions.
- We may encounter delays or refusals in obtaining all necessary zoning, land use, building, occupancy, and other required
government permits and authorizations.
- We may be unable to proceed with our development or redevelopment projects as anticipated due to changing zoning,
land use, building, occupancy, or other government codes or regulations.
- Development or redevelopment projects may have defects we do not discover through our inspection processes, including
latent defects that may not reveal themselves until many years after we put a property in service.
The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations,
our financial condition, results of operations, and cash flows, our ability to make distributions to our stockholders, the market price of our
common stock, and our ability to satisfy our debt service obligations.
We may face increased risks and costs associated with volatility in commodity and labor prices or as a result of