A Supply analysis will determine the extent to which proposed facilities will be competitive. Similar facilities within the market area should be reviewed with the objective of determining the extent of competition, along with planned additions to supply and indicators of potential growth.

The goal of a demand analysis is to quantify market share and absorption. Indicators of potential growth identified in the Supply analysis will be further explored accompanied by interviews with key executives of major companies within the market area to determine the local demand and special requirements.

Critical for any risk venture, detailed financial analysis is the ultimate test for reward or failure.  DCG Corplan’s Pro Forma analysis of cash flow, debt services and tax depreciation evaluates performance for at least seven years utilizing rental rates developed from the supply and demand analyses.   Development funding and ownership options are explored, such as public-private partnership, grants and tax credits, and other financing vehicles to determine your best outcome.  Our analysis includes

• Rental and other revenue
• Administrative and general expenses
• Marketing expenses
• Operating and maintenance expenses
• Net operating income summary
• 7-year pro forma including debt service

An initial Market Conditions analysis will evaluate the economic and demographic characteristics of the local market area, utilizing published sources. DCG Corplan’s investigation includes:

• Local area/County/Regional population demographics
• Education and training
• Employment and labor
• Income
• Transportation
• Construction costs
• Housing, commercial or industrial rents or prices
• Utility rates
• Property taxes
• Per capita retail sales

In order to make the right decision about a real estate investment a feasibility study should be conducted that assesses the market strength, evaluates competitive supply, and carefully forecasts demand for the prospective occupancy.