Condominium Studies

Following is a synopsis of the components typically associated with a condominium (for-sale multifamily) market feasibility study

Site Inspection

Each proposed site is personally inspected by a Danter Company field analyst. The site is inspected for the suitability for development as it relates to the market. A full area description is included identifying surrounding land uses, as well as proximity to area resident services.

Effective Market Area (EMA)

An Effective Market Area is identified for the subject site. This EMA is the smallest geographical area from which the proposed project is expected to receive 60% to 70% of its support.

100% Field Survey

1. Condominiums

   Condominium development in the EMA is surveyed to identify the following characteristics:

   • Number of units
   • Unit types
   • Purchase price
   • Buyer profile
   • Floor plans
   • Square footage
   • Unit amenities
   • Project amenities
   • Association/maintenance fees
   • Builder/developer
   • Absorption trends
     
     
2. Apartments

   When appropriate, the multifamily apartment base in the EMA is surveyed in order to identify the potential of existing tenants to serve as a pool of potential buyers. When we survey modern apartments, we identify the following characteristics:

   • Number of units
   • Type of unit (garden/townhouse)
   • Unit mix
   • Rent
   • Vacancies
   • tenant profile
   • Unit amenities
   • Project amenities
   • Project type (market-rate or government subsidized)
   • Utilities
   • Marketability rating of the project
   • Year built/opened
   • Determination of Comparability Rating, an impartial apartment project comparison rating based on a community's unit, project, and aesthetic amenities

Conclusions and Recommendations

1. Analysis of annual optimal market support for condominiums in all price ranges based on projected capture factors
2. Recommended for-sale pricing structure
3. Recommended unit and project amenities
4. Anticipated absorption rate
5. If asked by the client, we can also identify anticipated support level for the site as a rental development and projected rents. Also included in the evaluation for rental potential would be a Comparable Analysis, step-up support levels, rent gap analyses, and projected absorption for the site as a rental community
6. If asked by the client, we can identify support for the development as a mixed for-sale/for-rent development, including anticipated absorption
7. Marketing strategies

For more information, please call Terry Hall at (614) 221-9096 during business hours (8 am to 5 pm) Eastern US time, or e-mail us at thall@danter.com.

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