Rent Analysis

Objective

Determine the market rent of a particular asset for decision-making purposes of the client. The principle needs of the client are represented below:

– The market rent of an asset

– Present the conclusions in a presentation to the clients and interested parties

Opportunity

To develop a rent analysis for an asset or portfolio with the following objectives.

Identify the rent value taking into the account the following principal factors (not limited to):

– Location

– Standard of construction

– Market in which the asset is located

The main asset classes for which rent analysis’ reports are ordered:

Industrial, logistics or factories – usually these are build-to-suit projects for which the rent must be defined. The report allows for developers to negotiate with clients and have a third-party opinion to back up their negotiations.

Office Project (greenfield) – sometimes there is a need for the study of the projected rents of a project during the planning process. Rents are extremely sensitive and can determine the feasibility of a project. Developers sometimes need a quick concise study that validates the rent input for a particular development.

Solution

Take the following steps to develop a rent analysis report:

1. Interview with the interested or involved parties

2. Evaluate and prepare document request list

3. Research comparable information (through databases or by proprietary research teams)

4. Presentation to client, and resolution of doubts – changes

Deliverable

– Analysis of the asset

– Physical attributes

– Location analysis

– Zoning analysis

– Market delimitation

– Comparables analysis

– Concluded rent value and considerations