Methodology & Analysis
Darkenwald companies continually analyze uses, markets, and technology to stay ahead of the exponential growth of changing consumer/business habits and resources.
Substantial investment warrants substantial analysis and feasibility. A well-executed proforma is vital and will analyze costs, returns, tax implications, future cash flows among many other things. Yet no matter how credible the person is who creates a proforma, and how alluring the promise of returns, tax shelters, and forecasts the subject property. It is imperative to remember that all proformas are compiled from information that is deemed accurate and reliable but are never guaranteed. They are hypothetical analysis/projections that are made based on opinions of a current market and are hopefully backed by experience.
Feasibility completed with experience, hard work, and ever-changing technologies that are now available to us can be more empirical and less hypothetical. Feasibility studies executed correctly will lay a foundation for a proforma to be taken much more seriously in terms of risk management and the most important point being, why your tenant will or consumer will use your property today and for years to come.
Strong feasibility is not just responsible due diligence, it is a tool to use for negotiations that will affect a lease or a sale in either direction.
A Few Items to Consider in Property Feasibility:
Radius and Drive Time mileage comparisons
Example. 5 mile, 10 mile and 15 mile.
Demographic information including:
- Population
- Income
- Household income
- Households
- Housing vacancy
- Population trends for the past 20 years and projections for the next 5 years
- Population by education
Transportation & Infrastructure
- Traffic counts
- Identify Potential Access issues
- Transportation planning for the immediate area
Subject Site Feasibility Market Area
- Aerial photography and identification of points of interest
- Surrounding attractions
Competition
- Identification
- Site attributes
- Drive-Time Distances
- Demographics and HH income
- Visibility
Other
- Retail spending habits that are industry specific
- Map population density overlays as well as industry based heat-map overlays