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Market Feasibility Study

A market feasibility study can be as simple as defining a market area, surveying the existing competitive product, reaching out to planning agencies to learn of any planed product and determining if the market can support your Project at agreed upon age and income criteria. At Brecht Associates we call this a Preliminary Market Study and it is a useful tool for understanding if you should proceed any further with your plans.

By adding additional elements to a Preliminary Market Study, a Full Market Study becomes a useful tool to potential lenders and a far more useful tool to you in understanding the market place in which you will be competing.

The following chart outlines the differences between a Preliminary Market Study and a Full Market Study. In both cases, the end result is a study that will at the very least, tell you if the market can support your planned Project. From there we can make recommendations regarding levels of care; unit mix; unit types and sizes and fees. Every study is designed to fit your needs and answer your questions. Our goal is to help you create successful senior housing and services.

Preliminary Market Study Includes:Comprehensive Market Study Includes:
Market Area Definition [note: radius not used in either type of study]Unique, specific project market area defined through telephone interviews with local planners and competitorsUnique, specific project market area defined through a variety of data sources including telephone interviews with local planners, realtors and competitors.
Existing Competitor AnalysisTelephone Surveys to obtain top line data only (occupancy; unit numbers; monthly fees etc.)Telephone Surveys to obtain top line data only (occupancy; unit numbers; monthly fees etc.) Onsite surveys of prime competitors, provide detailed information on services, amenities, and living environments,. The comprehensive study also can include information on product positioning and incentives –Each client selects the information they want us to collect. Individual competitor profiles are included as well as comparison analysis of your community against your primary competitors
Planned CompetitorsInterviews with local planning agencies, follow-up on projects identified in senior housing construction reports.Interviews with local planning agencies, follow-up on projects identified in senior housing construction reports. Survey of planned developments can be included in the site survey visit.
Demographic AnalysisBrief overview of key market area demographic dataThe demographic analysis reflects the changes in age appropriate population and households over the next five years within the market area defined for your community. The demographic trends may include a comparison county, state, or country data, income density mapping and housing trends.
Market Depth AnalysisQuantitative estimate of market depth, project penetration, market penetrationQuantitative estimate of market depth, project penetration, market penetration
Qualitative InterviewsNot included in preliminary studyInterviews with 10-15 key informants are conducted. These are people familiar with your market and/or with senior housing (i.e. referral sources, social workers, realtors, financial advisors, hospital discharge planners, and economic developers). You are involved in design of the interview guide and names of individuals we contact.
Site EvaluationNot included in preliminary studyThe site survey includes a description of the immediate area, accessibility to the site, socio-economic data and perceptions of the site and neighborhood gathered through interviews with community members .