MAP Report (Market Analysis Platform)

Objective

MAP Report – Estimate the following metrics of an ongoing project for the financial modelling and due diligence process which can be presented to investors and lenders and used for decision-making purposes:

For Sale

Absorption: Project how quickly a project will sell-out

Pricing: Project pricing, and pricing increases over time

For Lease

Absorption: Project how quickly a project will absorb and the time to stabilize

Pricing: Rental values and increases over time

Opportunity

Identify the commercial potential of a subject property considering market trends and competitive advantages compared to its competitive set.

– Define a compset.
– Forecast future demand for compset.
– Determine subject´s Capture Rate and Market Rent.

Solution

Undertake a detailed analysis of the subject property, the direct competition, and the market to identify the main demand drivers:

Carry out an analysis of the commercial potential of the project based on its ranking.

Collect, organize and analyze market information to identify main market trends at the supply and demand level, and their potential impact on the subject.

Deliverable

1. Property Analysis

Site:

– Access.
– Shape.
– View / Visibility.
– Zoning

Location:

– Macro.
– Micro.

Improvements:

– Asset.

Type, Class, Technical Specs

 

2. Compset Analysis

– Comp Selection Criteria.
– Comps Analysis.
– Classification (Best to Worst Quality)

 

3. Market Trends Analysis

Demand Analysis (Rents or Sales):

– By Proximity to Subject.
– By Classification

Absorption Analysis:

– Stabilized or Sold Out Projects
– Not Stabilized or In Sales Process

Supply Analysis (Supply vs. Occupied Space or Sales):

– By Proximity to Subject.
– By Construction Date.
– Future Supply Analysis.

 

4. Conclusions and Recommendations (Subject)

Market Rent or Sales Values by Unit Type.

Rent or Sales Growth.

Construction Projection Based on Competitive Supply and Demand (if applicable).

Absorption or Sell-out (Max Rents or Sales and Shortest Absorption Time).

Occupation (Estimated Time to Reach Stabilization Threshold, According to Compset) or Projected Sell-out.