Marketability Analysis, Studies & Services
We offer marketability studies to understand how a property will be leased, sold, absorbed or viewed by the market. We offer this service for a variety of office, retail, multi-family, industrial, and land properties throughout Colorado.
A Marketability Study focuses on how a particular property will be absorbed, sold, or leased under current or anticipated market conditions.
While most market studies are specific to the property type and general area, marketability studies are specific to the property, and how it relates to the market. As a result, a market study or analysis of the general property type is also included as part of the marketability study.
This type of study is focused on analyzing the four factors that create value- utility, scarcity, desire and effective purchasing power. The interaction of these four factors can determine the marketability of a property.
Marketability studies seek to answer the following questions:
- Who will the end users be?
- What are the characteristics of the expected end users (age, family size, typical space needs, preferences of facility type and amenities)?
- Does the utility of the improvements, either proposed or existing, satisfy the requirements of the intended market?
- What is the demand for the proposed or existing property that is to be marketed?
- How many end users would want the property (desire)?
- How many potential users can afford it (effective purchasing power)?
- What share of demand is the property likely to capture (capture rate)?
- What is the supply of competitive properties that will be marketed?
- How many competitive units currently exist?
- How many competitive units are under construction?
- How many competitive units are planned?
- What is the estimated absorption rate for the proposed property to be marketed?
- If already developed, what future rent and occupancy are expected?
- Are there alternative uses for the property that would provide a higher return on investment?
- What are the relative risks associated with alternative uses?
Our marketability studies also include recommendations that can be used to improve the marketability of the property, if the property under consideration is already built.
Marketability Study Services
Marketability studies are one of the most under-utilized services offered by appraisers. This type of study can help owners understand how and why their property is perceived a certain way by the market. It can also help the understanding as to why or why not the property leases at a specific rate, why or why not it will sell, how it compares to what the market demands, whether or not changes should be made to the building, or how changes will be absorbed by the market.
Marketability Study Pricing
Like most market related studies, there is no standard pricing for a marketability study. This is because the complexity of the property and overall scope of work will dictate the level of investigation required by the analyst to reach reasonable conclusions. To quickly and easily get pricing on a marketability study for your property, use this pricing form.
We offer an array of market services. Refer to our development, redevelopment and repositioning services, or view our appraisal services.