Our normal completion time is two weeks per report.  During the first week, we gather preliminary information and construct the field research.  In the second week, we analyze the data and prepare the study.  The tasks required to complete each assignment are outlined below.

Preliminary Evaluation

At the beginning of each project, the company’s principal reviews the project information to identify key issues that the market field research and analysis should focus on.  The principal discusses the issues with the analysts who will conduct the fieldwork and prepare the report.

Data Collection

In preparation for our field research, we will complete an information packet that maps the site, identifies all competing rental properties near the community, and names of local contacts and describes the community in which the site is located and economic trends affecting it.  We have found that the field packets help us gather the required information effectively.

Field Research

The field analyst spends two to three days on-site.  During this time, the analyst evaluates the suitability of the proposed site, determines the geographic area from which the project will draw tenants, interviews rental property managers, and obtains information on the rents, vacancy rates, absorption rates and turnover rates at rental projects that will compete with the subject for tenants.

Site Evaluation

A site’s location can significantly affect its market appeal and value to potential tenants. Our field analyst evaluates the impact of the site’s environment upon its market appeal to housing consumers by photographing the site, videotaping its micro-location and completing an evaluation that covers the following topics:

• the site’s physical features,
• its surrounding land uses,
• nearby retail shopping facilities, social services and recreational opportunities,
• access to public transportation services,
• access to employment opportunities,
• access to major roads and
• crime and public safety considerations.

We will identify the strengths and weaknesses of each site and identify measures that can enhance the site’s strengths and mitigate its weaknesses.

Market Area Definition

A project’s market area is the geographic area from which the development can reasonably expect to draw residents.  The market area usually contains areas with common characteristics. It offers a range of housing choices that have similar neighborhood characteristics, service levels and employment opportunities.

We will identify the geographic areas from which a proposed development will draw most of its residents through interviews with rental property managers and an analysis of the commuting patterns of local tenants, the service areas of institutions that serve the community, circulation areas, trade areas, community boundaries and geographic boundaries. Our analysis of the neighborhood socio-economic characteristics and housing market conditions will focus on this geographical area.

Economic Trends

Economic and employment data will include past trends, current data and future projections.  Our economic profile will include labor force and employment trends, labor force projections and data on wages and earnings.  Through interviews with local economic development officials or planners, we identify any planned employment changes that will affect future employment levels and wage rates.  All of this data depicts the market area’s current and anticipated future economic health, and are implications for the subject.

Demographic Trends

The demographic data presented in our report will include past trends, current data and future projections.  Published Census data provides the needed information to form a trend analysis.  Current estimates and future projections are developed using data from local officials and private data sources such as Claritas, Inc. 

This portion of the report includes information on population, household size and composition, income, age of population, age of household head and identifying tenure (renter versus owner).  We will use this data to prepare a market area household profile that identifies how many renter households within each income group live in the market area today and when the project will be ready for occupancy.

Housing Market Characteristics

The housing section of our reports describes housing choices available to tenants.  Our description of the market area’s housing inventory will include the amount, features and age of available units, with emphasis upon developments that are in the same price range as the proposed project.  It also describes current and historic price levels, vacancy rates and absorption rates.  As part of our analysis, we conduct an in-depth evaluation of other competing projects to determine the importance of the location, design, unit size, amenities and price of these projects in attracting and retaining tenants.

Project Evaluation

We assess how the proposed project will satisfy the housing preferences of potential residents and how it competes with other projects.  We will compare the proposed project’s location, access and proximity to community services, prices, unit sizes, unit features, common amenities and project design to competing projects.  Our evaluation concludes with a summary of the proposed project’s strengths and weaknesses and, if necessary, suggest modifications that will allow the project to compete more successfully for tenants.

Demand Analysis

Our analysis identifies how many market area households for whom the proposed units are suitable have sufficient incomes to qualify for the units in the proposed treatment plan. We identify what percentage of this pool of potential consumers the development must capture to attain full occupancy.

Conclusions and Recommendations

We determine whether the project can attain this capture rate and estimate how long it will take for the proposed development to reach a 95% occupancy level. If the project will have difficulty attaining its required market share, we suggest changes in project size, project design, unit mix, amenity package or price.

To view the locations we have processed site evaluations click here