Colorado's #1 Rated Appraisal Company

Colorado’s #1 Rated Appraisal Company


Fundamental Market Analysis Services

Market Analysis Services

We offer two levels of market analysis services: Inferred and Fundamental. This page briefly describes our fundamental market analysis services.

Fundamental Market Analysis

Fundamental market analyses provide in-depth research into supply and demand factors to forecast potential supply and demand opportunities or shortcomings that may exist in the future.

This level of analysis is focused on using extensive subject, location, demographic, submarket, market, and economic data to research, analyze, and forecast quantified supply and demand expectations for a specific property. The analysis quantifies market forecasts for the subject such as level of demand, under/over-supply, specific competing projects, projects under construction, planned development, reasonable capture rates and absorption patterns, market equilibrium, and more. After identifying fundamental drivers for the property and market, the analyst will make quantified conclusions related to supply and demand, and marketability of a development.

Forecasting supply and demand for various real estate types can be very extensive. This is why there are differing levels of analyses (read about an inferred vs. fundamental market analysis here). Most commercial property types share some common drivers of supply and demand, but have specific nuances that must be examined in great detail to be able to formulate a reasonable opinion as to future market conditions.

Fundamental Market Analysis Services

This level of market analysis is most commonly used for new development of any kind, redevelopment that requires significant capital expenditures, or repositioning a large asset. Due to the fact that development typically has both a planning and a construction phase, completion of construction and delivery of the product typically occurs one or several years into the future. Thus, future market conditions which are likely to exist when the project is ready for sale or lease become more important than the conditions that exist today.

The majority of commercial real estate appraisals do not include a fundamental market analysis unless the assignment entails developing a self-contained appraisal report for a new construction project.  However, a fundamental market analysis can be included in any appraisal assignment if it is clearly discussed with the appraiser prior to commencing on the project.

Fundamental Market Analysis Pricing

Ordering a fundamental market analysis, with our without an appraisal can be an excellent way to help understand what the competitive landscape will be like for a property type through a defined time period. Most fundamental market analyses have a marketability analysis built into the analysis. Use this pricing form to quickly get pricing for your assignment. Please be sure to include whether or not you are looking to include in within an appraisal, or as an individual study.

Related Services

We offer an array of market services. Refer to our development, redevelopment and repositioning services, or view our appraisal services.