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USING MARKET STUDIES IN OPERATIONS

USING MARKET STUDIES IN OPERATIONS. Green Door Services Firm: Urban Focused Advisory Services Established in 2006 Offices in DC & LA Services: Market Analysis Financial Feasibility Analysis Development Management Services Real Estate Strategy Public/Private Partnerships

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USING MARKET STUDIES IN OPERATIONS

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  1. USING MARKET STUDIES IN OPERATIONS

  2. Green Door Services Firm: • Urban Focused Advisory Services • Established in 2006 • Offices in DC & LA • Services: • Market Analysis • Financial Feasibility Analysis • Development Management Services • Real Estate Strategy • Public/Private Partnerships • Clients: Public Sector, Nonprofit Intermediaries & Developers, Emerging Developers

  3. WHAT A MARKET STUDY DOES? • Examines subject property/area in context of broader market trends • Analyzes supply and demand factors • Provides Market-driven recommendations and programming WHEN DO I NEED ONE? • Verify existing products/ program • Targeting Key market segments • Achievable pricing and absorption • Due diligence • Third-party project financing • Reposition existing developments

  4. TYPICAL COMPONENTS Subject Site Analysis: proximity to employment, services, transportation, neighborhood characteristics, access & visibility Demographics Trends: define market area, income, household composition, projected growth/decline Competitive Supply Analysis : comparable/competitive properties pricing, amenities, features etc.. positioning property Demand Analysis: depth of demand by HH size, type and income, consumer propensities, subject site capture Development / Repositioning Recommendations: Depth of demand by product type, Depth by affordability, Competitive advantages and challenges of the subject site, Uniqueness of the project

  5. USING MARKET STUDIES TO INFORM OPERATIONS Reconfirmation of Marketplace: Period of time between initial marketing strategy and current state of the market: How has competition changed? How have demographics changed? Results can inform leasing strategy: Identification of niche market segments Informing marketing/advertising Adjusting amenities and services

  6. USING MARKET STUDIES TO INFORM OPERATIONS Repositioning of Asset Changing Demographics: Where is the depth of demand? (30% AMI, 50% AMI etc…) How does this impact lease-up? Absorption? What do those changes mean for financing? Is financial restructuring required? Prudent? Market Position: Do we need to rethink target market? families vs. seniors vs. “active adult”, other?

  7. EXAMPLE: • LIHTC Project • Slower than Anticipated Lease-up • Upcoming Challenges Meeting Debt Obligations • Market Analysis • Examined lease – up versus competition to identify gaps between subject property and comparables • Analyzed primary market area to determine reasonable absorption expectations given current marketplace – compared to initial lease-up projections • Explored impact on demand (and lease-up potential) if alternative household types, income groups were targeted • RESULTS: provided specific recommendations to accelerate lease-up; changes to market segmentation and recommendations for “soft services” to enhance project's competiveness

  8. 202-234-0726 Phone 202-234-0727 Fax mgaither@greendooradvisors.com www.greendooradvisors.com

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