Market Analysis

Evaluate market analysis tools and techniques that underpin property development and investment feasibilities and establish the highest and best use of property assets.

Market analysis is very important to the early stages of a development. This is the process of getting to know the economic character of a market, in order to decide if that market can support your project.

In LDEV 664, we learned the different methods of conducting a market analysis and how those approaches affect our decision-making as developers. The most elementary of the approaches is that of highest and best use. The goal of this method is to answer four basic questions about the project:

1). Is it legally permissible?

2). Is it physically possible?

3). Is it financially feasible?

4). Is it maximally productive?

Answering those four questions will help you decide if your project should go forward. As important as that approach is, it’s just one piece to the puzzle. Studying the supply and demand of a given area is also a must in market analysis. In LDEV 664, we used financial reports from CoStar and business journals to make our decisions based on market condition. Knowing that your chosen area is capable of supporting your project is a fundamental part of the pre-development process. This class, and our professor, Dr. Peterson, taught us just how important it is.