Strategic Rehabilitation Studies
Analyses typically take four weeks to complete. Jobs
requiring faster turnaround may include a surcharge. Following
is a synopsis of the components typically included within a
Danter Company strategic rehabilitation study.
Effective Market Area (EMA)
The EMA, the smallest area from which the project is expected
to draw 60% to 70% of its support, is identified for the
proposed site by mapping previous addresses of existing tenants.
Mobility patterns affecting the subject site, natural and
manmade boundaries that affect mobility, and area perceptions
affecting the site are all identified. Management will be
required to provide a list of current tenants by the zip code of
their previous residence.
A social, demographic, and economic profile is conducted for
the subject city, county, and Effective Market Area. Included
are population, household, income, employment, and housing
Applications are analyzed for demographic characteristics,
and a tenant profile is determined.
The subject community will be visited by a field analyst from
The Danter Company posing as a prospective tenant. The following
areas of community operations will be evaluated.
- Community grounds appearance
- Rental Office
- Sales presentation and leasing agent
- Model/vacant apartment
- Telephone technique
Marketing practices of the community will be evaluated. The
objective of this work element is to identify attraction and
100% Field Survey
All modern apartment development within the EMA is surveyed
by our field analysts. The number of units surveyed is checked
against census and local building permit data to ensure proper
representation. The following information is identified for each
- Number of units
- Type of unit (garden/townhouse)
- Unit mix
- Unit amenities
- Project amenities
- Project type (market-rate or government subsidized)
- Comparability rating of the project
- Year built/opened
The use of a 100% database allows us to use the
- Step-up support
- Exit and turnover vulnerability
- Gap pricing
- Regression analysis
Conclusions and Recommendations
- Strategies for rent adjustment to bring the community
in-line with market pricing levels. Rent adjustments, if
needed, may apply to specific unit types or the entire
community. In addition, changes in amenity packages
may be suggested to make the community more competititive
within the market.
Proposed rent adjustments are based on the following
- The unit and project amenities package is evaluated to
determine its level of competitiveness with area
- A comparison of existing rent to market-driven rent
based on a Comparable Rent Analysis. The Comparable Rent
Analysis allows for determination of market-driven rent
for projects of any amenity level by using a regression
analysis to analyze project rent in conjunction with its
- An analysis of step-up support for the project.
Our research indicates that the largest single component
of support for any apartment project is apartment tenants
already residing within the EMA, and that most apartment
shoppers will "step up" their rent payments for
housing that they consider to be a value. One of the key
factors in declining performance is that an apartment
community increases rents beyond the ability of its
traditional step-up renters to afford. Our analysis
identifies this step-up support by dollar range and
- An analysis of turnover vulnerability for the
project. Our research indicates that the largest single
source of tenant "drain" from any development is
the apartment communities in the EMA priced within step-up
range of the subject community.
- An analysis of rent gaps. Rent gaps are the differences
in rent between unit types, such as one-bedroom and
two-bedroom units. Rent gaps can be a substantial factor
in a project's initial rent-up. Our analysis identifies
the area's median rent gap, rent gap at the proposed
project's Comparability Index, and rent gap at the
proposed project. Rent gap among product alternatives
(such as mix, location, and floor plan) at the subject
site is also evaluated.
- Competitive Analysis. Competitive projects are compared
with the proposed project and analyzed in detail,
including a detailed look at floor plans, entry impact,
storage space, unit and project amenities, and pricing.
- Marketing strategies for the proposed project may be
discussed if appropriate.
For more information on strategic rehabilitation studies,
please call us at (614) 221-9096 during business hours (8 am to
5 pm) Eastern US time.
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