This is a conduct of a market-based evaluation of a proposed project or concept for a real estate property. The property may be idle or developed, but under-utilized, and requires a thorough cost and benefit analysis which FPD Global as consultant will help the property owner assess in terms of marketability and financial feasibility prior to having the project designed by an architect or implemented by a contractor.
FPD Global had undertaken studies for residential, commercial and industrial developments. The basic scope of a market study is as follows:
i. Desk Research / Secondary Data – FPD Global normally organizes a competent team of researchers to gather relevant data from both government and private offices. These data will include statistics, publications, and government and private sector reports on the local market and competitors. These data along with available information on other relevant developments will be gathered, processed, and analyzed. Statistical data will focus on available information on the following areas : Demographics, Income and Expenditures, relevant statistics, and other pertinent information than can be researched from the local government unit, where the property is located;
ii. Site Analysis - The subject property undergoes detailed site analysis in terms of accessibility, traffic density patterns, visibility, inherent strengths and weaknesses, and the like;
iii. Trade Area Survey - A field survey shall be undertaken to cover the profiling of all types of projects, particularly those that are relevant to the property or proposed project. Profiling usually covers: Current Industry Players, Comparative Rates/Packages, Occupancy data, Amenities & Facilities, Key Selling Points, Expansion Plans, Existing Marketing Strategies/practices and the like;
iv. Development of Market Positioning – Once competition is identified, and key differentiating elements have been defined, the next step would be the development of parameters that will serve as inputs for the detailed designing and planning for the proposed project. Hence, it is expected that the architectural design will not purely be a product of inspiration by the architect, but rather a reflection of the elements of what makes the project marketable and financially viable.
v. Financial Analysis – Alongside the development of the market positioning is the financial analysis, which takes into consideration factors such as sales, take-up or occupancy, payment terms, phasing plan, etc, vis-à-vis rule of thumb cost assumptions for site development, construction and other soft and hard costs. All these will serve as inputs in forming the cashflow and profit and loss analysis of the project. The profitability measures will serve as decision points for the project owner, whether to hold off or proceed with the implementation of the project.