Market Feasibility Studies for Commercial Income-Producing Properties
The market feasibility studies prepared by Rainmaker Underwriting provide real insight into the market feasibility of developing a given income-producing property and then achieving a successful launch upon completion of construction. The market feasibility study is the cornerstone document in the pre-construction phase due diligence presentation because everything else should be developed and undertaken in reliance upon the conditions and requirements uncovered in the analysis process. A proper analysis will provide the information necessary for the architects to do their job, the contractor to do their job, the marketing team to do their job and the operations team to deliver the end result that the end-user/consumer says they want to see and use. Furthermore, the actual underwriting process for capital financing of the project will include a careful review to see if the building envelope, marketing plan and plan of business operations conforms to these findings as the analysis process is always undertaken in reliance upon the fact that we live in a market economy and everything about a market economy revolves around the concept of "logical choice".
Logical choice is the secret that makes capitalism work. Each consumer is making decisions based upon their own self-interest and, taken in their entirety, provide the information necessary for businesses to have the opportunity to address their needs and provide the services and products that logical choice dictates as being desirable to the largest segment of potential consumers for those products and services.
Rainmaker focuses on creating a comprehensive picture of information on the local sub-market where the property is most likely to compete and then developing the profile of the "ideal property" that would address these needs and thus create the outcome of the highest possible odds of a successful launch that investors and lenders are relying upon to realize their profits and eventually affect an orderly exit from the investment transaction (thus resulting in a positive investment decision that gets the owner/sponsor the funding they need to complete the project and bring it to market). Without strict observance of these requirements, the lender or investor is left to wonder if the property can in fact stabilize and achieve the economics the sponsor/owner says are achievable. This is why the analysis is the linchpin in the transaction and can never be avoided.
Rainmaker creates this most important document by using a standard three-step analysis approach that includes: (1) demographics analyses to determine indicators of long-term demand as well as current year forecasts of net buildable demand; and (2) local market surveys of existing properties that are likely to be directly competitive in the sub-market area and would therefore serve to reduce the net buildable demand; and (3) amalgamating all of this information into a final analysis that dictates new construction demand (adjusted for actual competitive property impacts), occupancy levels and revenue stream expectations based upon the assumption the property will provide the schedule of services and amenities that consumers are demanding and that competing properties are already seeking to provide (to one extent or another).
The key to success lies in the level of reporting detail that includes:
If you aren't getting the answers your team needs, then talk to someone on our team. The initial consultation is free. We offer a complete array of customized consulting solutions for companies seeking capital financing for their projects to complete the continuum of services you need for a successful outcome to have the opportunity to be realized. We offer fundamental guarantees that you won't find anywhere else, to wit:
Start the conversation by consulting with us on your project. The first consultation is free. Please call us today.