Market feasibility studies that are tried and truly tested…

COMMERCIAL REAL ESTATE

Project Market Feasibility Studies Overview

The project market feasibility study is the key document that drives everything in commercial real estate income-producing property development transactions.  We live in a market economy and that means everything hinges on the purchasing preferences of consumers.  The goal of our project feasibility study approach is to mimic the consumer acquisition process, model it demographically, investigate and report upon the impact of competition, and adjust the new construction demand analysis based on this information.  This process does not come without challenges we all have to face:

•  Feasibility studies rely upon assumptions – and that means a feasibility study that doesn’t test these assumptions may not be as supportable in the eyes of the person stroking the check as one that does test the key empirical assumptions.
• Feasibility study conclusions require support as well.  The testing process must extend to the conclusions being tested for there to be a basis for common understanding of the conclusions and opinion.

Our feasibility studies Principal has more than 30 years of experience in preparing these reports.  That 30 years of experience includes assignments completed in every Tier I and Tier II CBSA, as well as most Tier III MSAs in the U.S., and even extends to many global markets.  Typical turnaround time depends on the vertical being addressed and the unique issues that define the proposed Project, with most assignments being completed within 3 to 4 weeks.  RTMS offers reporting options based on the client’s stated needs and business goals that include:

• Summary Report – approximately 30 pages in length, heavy on graphic detail, light on wording, and designed for management review and high-level decision-making.  This report serves for obtaining bank loan approval in most cases.
• Analyst Report – approximately 125 pages in length, heavy on the details owing to each part of the assignment, and includes a full pro forma financial presentation.  This report suffices for most bank lending and equity security underwriting scenarios.
• Full Report – approximately 250 pages in length.  This report provides exhaustive levels of disclosure and detail intended for large equity security offerings and/or bank loan underwriting reviews.