Market Analysis Platform for Institutional Clients

Objective

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

Property Analysis

A. Site

  1. Access
  2. Shape
  3. View / Visibility
  4. Zoning

B. Location

  1. Macro
  2. Micro

C. Improvements

  1. Asset
  • Type
  • Class
  • Technical Specs

Compset Analysis

A. Comp Selection Criteria
B. Comps Analysis
C. Classification (Best to Worst Quality)

Market Trends Analysis

A. Demand Analysis (Rents or Sales)

  • By Proximity to Subject
  • By Classification

B. Absorption Analysis

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

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

  • By Proximity to Subject
  • By Construction Date
  • Future Supply Analysis

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