Feasibility Studies / Market Analysis
A real estate feasibility study is an assessment of the practicality of a proposed project or acquisition. Understanding the current and future market conditions cannot be overlooked. With the goal of evaluating the ultimate success of the proposed action, the feasibility study aims to objectively and rationally uncover the:
- Current and likely future market conditions (supply & demand)
- Location and site analysis
- Local political environment and legal barriers
- Financial analysis, given each of the above inputs (Front Door/Back Door)
- Strengths and weaknesses of the proposed venture
- Opportunities and threats present in the marketplace
- Resources required to complete
Due Diligence Services
No project or acquisition should occur until the condition of the property is fully vetted. The due diligence phase of the acquisition can be quite costly, necessitating an organized process of steps in a manner to spend as little as possible before engaging the more expensive studies. The Van Ark team has led due diligence efforts in six states from 2008 to 2016 on a consulting basis, involving a wide variety of regulatory issues. Some of those services offered include:
- Income/Expense Analysis
- Long Term Yield analysis
- Discounted Cash Flow
- Net Present Value
- Current or Future Disposition analysis
- Lease vs. Own
- Sell vs. Hold
- Point of Indifference
- Zoning Issues
- Use by Right
Section 106 Process
- National Historic Preservation Act of 1966 (NHPA)
- Interface with SHPO and THPO officials
- Public Hearings
- MOA and MOU creation
- Phase I, Phase II, and site mitigation
- NEPA Studies – National Environmental Policy Act
Many leases contain a series of formulas from which rent or expense reimbursements are calculated. Over time, these may result is the tenant being overcharged, and unnoticed. A lease analysis may reveal such overcharging. Likewise, as a lease nears expiration, a tenant may benefit from comparing existing option terms against the current market conditions for negotiation purposes.
The Van Ark Team is able to provide supporting services to assist in the determination of potential legal actions.
Tenant Representation / Buyer Brokerage
Under an “Exclusive Agency” agreement, the Van Ark Team will perform a “needs analysis” to establish the foundation of a site search. Once engaged, the Team involves all of its tools at their disposal to locate the most advantageous market, then focusing down to the actual site to best satisfy the established “needs.” The various services provided are:
- Site Selection & Analysis
- Trade Area Delineation
- Incentive Negotiations
- Lease Negotiations
- Tenant Improvement Negotiations
Landlord Representation / Seller Brokerage
The Van Ark Team has extensive experience in the disposition of the various property types. Proper valuation and positioning in the marketplace is key to maximizing the financial return to the property owner/seller. A complete Marketing Plan will be created and agreed to by the client indicating the step-by-step marketing and transaction management.
Team Building / Management
No project, sale or acquisition can be completed by a single entity. Every client has a trusted circle of financial and legal counsel. The Van Ark Team will not complete a transaction without the input and advice most familiar with the clients legal and tax situation. With the approval of the client, the various team members are called on at the appropriate time to provide the input required to complete the transaction.
Contact us today!
We’re available to answer any questions you have about the Colorado commercial real estate market.