Real Estate Market Feasibility Study

Real Estate Market Feasibility Study

Our team at Prospectus can assist with your real estate market feasibility study report. We tailor each market study to the needs of the project and conduct research appropriate for the development and constructions needs. Our staff of researchers, business plan and financial consultants have written hundreds of feasibility studies reports worldwide, including in more than 50 countries.  All projects, however, no matter where located, contain common threads. The main purpose of a market feasibility study is to determine whether marketplace conditions are favorable to enter. All companies need to know this before launching any product or before a shovel hits the ground.

A market feasibility study can be employed for any type of business and industry. One of the more popular feasibility studies we at MFN work on is market studies for real estate development. We have worked on interesting projects from hotel and condo developments to underwater resorts built in the South Pacific. We are often commissioned to work on hi-tech market studies that encompass various inventions, product launches, food and beverage products, financial commodities and many others. We have written market studies spanning a wide range of industries and businesses, including such diverse sectors as real estate development, the oil, gas and renewable energy field, scientific, atmospheric and space exploration, and many other interesting projects.

What to do with the land? Land Assessment Feasibility Study

There are many market studies that ‘just’ require full market analysis such as demographics, competitive analysis and other characteristics, while there are other market studies that mandate what to do with the land itself. We call this a land assessment feasibility study where we help determine the best property to develop on the particular property.

Market Study Characteristics

A proper market feasibility should address issues such as. Here are some criteria for both real estate and non-real estate projects.

  • Demographic analysis of the product, or for real estate, the proposed area
  • Neighborhood analysis
  • Demographic comparison
  • Municipal incentives
  • National market overview
  • Analysis of similar project or developments
  • Regional market analysis
  • Competitive market analysis
  • Competitive advantages of project or location
  • Disadvantages of project or location
  • Projected overall market
  • Pricing analysis
  • Purchases or occupancy
  • Interviews if needed
  • Financial analysis

What We Do

Our team assists from the onset to completion for market feasibility studies.  Here is a partial list of our process, using a real estate project as an example:

Review

  • Initial analysis of your project
  • Recommendation on next course of action
  • Undertake the project

Information assessment and collection

  • Initial analysis of the proposed development area, including the initial demographics
  • Conduct land or site review
  • Proposed construction and development costs

Market analysis

  • See above bullet points for a sample

Financial Statement, Projections and Analysis

  • In-depth financial reports, including, but not limited to:
  • Income statements
  • Balance sheets
  • Statement of cash flow
  • Budgets
  • Profit & Loss
  • Proforma

Management summary

  • Principals
  • Advisors
  • Third party team, i.e. law firm, accountant etc.

Recommendations

  • Will make recommendations regarding the feasibility of the product or project

Appendixes and Addendum

  • Once complete we will then send the draft version for review and comments.

Start to Finish

MFN will work from start to finish on your project.  Our team has been involved in literally thousands of projects and our success is interwoven with our clients’ success.  We have set the bar high, taking into consideration time constraints and budgets.  We pride ourselves on offering superior service – not just on a local or national level but on a global scale – at a fraction of the cost of our competitors and with faster delivery.  We give our clients the tools they need to make an educated decision about the business opportunity at hand by producing market driven, financially conscience studies.  The success of our clients is the number one goal of our company.

How Long Does it Take to Write Market Feasibility Study

Depending on the type of study, the timeframe to write and complete a feasibility study can vary from a few days to a few months. The average time for a market study is 3-4 weeks, and if one needs the service expedited this can be done as well.

Why Write Market Feasibility Study?

Writing a market feasibility study is good business practice.  This is especially true for companies that are planning on raising many millions of dollars and want to have the knowledge readily available to make an educated decision about a project’s viability.  By creating such a study, for instance, for a real estate project, you will be able to navigate potential pitfalls during development and save needed capital in the process, as well as possibly discover new opportunities in the market.

Feel free to reach out to us any time for a free consultation.

Contact Us For a Free Feasibility Study Consultation

Read More

Real Estate Market Feasibility Study