Question

Discuss five most important feasibility study factors that make a shopping centre so successful.

Answer 1

Assessment of Land and Property

Until committing to construction, many property companies will perform a property assessment or land assessment. Such an assessment would decide whether the plan is' feasible' and worth the time and resources to go on. A real estate and building feasibility plan or design analysis will also detail the costs associated with the overall project. There will also be revenue projections based on comps in some feasibility studies, whether for single family or condo home sales, or hotel occupancy rates. The review of the design of the land and property feasibility analysis would help to clarify the plan and provide the necessary insight into the potential revenue sources and costs.

Feasibility Study vs Business Plan

A business plan is considered a kind of road map. We need to consider their market, their numbers, and the potential for any company to succeed. Business plans are used for all types of business, including projects related to real estate and construction. A feasibility study is like a business plan in that it outlines the potential opportunity and allows an educated decision on whether or not to step forward. As such, the feasibility study for a land or property is the' business plan.' One said it would be considered a' feasibility report' if the planned land or property development had a business plan. Both are necessary for any successful project.

Financial Feasibility Study for Property Development

The drafting of the financial projections and budgets needed to carry out the feasibility study would be performed during the initial stages of the design of the feasibility study. The production of the financials at the start of the activities will also help the organization in terms of moving forward with the right decisions. The plan will stop if the numbers don't make sense. If the numbers work, the plan would go on. All the more explanation why at the beginning of the process this function of the property feasibility report is carried out and not the end.

Since the outcome of any business related to real estate or not is to make a solid return on investment, understanding the ins and outs of the construction project's financial feasibility study makes such a document essential. Here is some information on a property's construction measures based on the financial feasibility study guidelines that Prospectus.com and our customers will pursue together.

Market Analysis

A comprehensive analysis of the market would also be undertaken. The market analysis segment will provide detailed information on the strengths and weaknesses of the market opportunity, including: local population and patterns, including projected growth Age of demographic and target market Income statistics For tourist developments, additional market characteristics would be detailed, such as: existing market size Historical figures and market size.

Yearly Project Usage Analysis

A detailed project summary, usually over a period of 5 years. The annual analysis includes: size of the market, demographics, etc.
Competitive analysis Analysis of current similar projects and their position The location and parts of the project needed to complete the design creation and project planning

Preliminary Property Development Feasibility

Sometimes, a preliminary property development feasibility study is written before a detailed feasibility study is written or planned. The preliminary report may serve an important purpose for those who do not want to invest capital on a more comprehensive feasibility study. Although it is not as comprehensive as a feasibility study, the preliminary report should mention the expense of planning a full feasibility study. A company that wants to build a hotel, for instance, has a budget of $10,000. We don't want to pay for a full feasibility study yet, as they need to know the costs involved first.