We want to build but need to know if the market is deep enough to support our plans.
There are two ways that Brecht can help you with this. One is a Preliminary Market Feasibility Study and the second is a Full Market Feasibility Study. The preliminary study is a very basic report. The full provides you with much more information resulting from qualitative and quantitative efforts.
- Market Area Definition
The market area definition is the foundation of a feasibility study. The market area represents the geographic area from which you should expect the majority of your residents will move.
Review of Competition provides “top line” data on year of opening, number of units by level of care, range of monthly fees, occupancy and any plans for expansion or renovation. Local planning offices are contacted to determine if any new product impacting your project is on the horizon.
- Demographic Trends
Demographic Trends based on demographic data from Nielsen Claritas we will provide you with details on the number of senior households by income within your market area and any changes forecasted.
- Demand Analysis
Demand Analysis or the bottom line. We will assess the number of new or additional units of a level of care the market can absorb as well as a project penetration and market penetration rate.
Full Market Feasibility Study will include all elements in the Preliminary Market Study but in greater detail. A full study also includes:
Review of competition includes site surveys of 3-4 of the most competitive communities with your project. Competitive surveys allow us to report on first impressions, evaluate common areas and living accommodations, profile the senior market they aspire to and are attracting, marketplace positioning, any alliances or services giving them an advantage (or disadvantage!) in the marketplace.
- Qualitative Interviews
Qualitative Interviews provide insights into the market place. Qualitative Interviews are conducted with community members involved in serving the needs of seniors as well as those who interface with your potential clients on a regular basis. Qualitative interviews do not provide substantiated quantitative data, but instead provide insight into the level of acceptance of your plans, its location as well as opinions about the type of residents that may or may not be attracted to a project like the one you propose. Interviews conducted with community and civic leaders and health care and real estate professions can offer valuable insights on your proposed development. The anonymity of interviews encourages candid responses.
- Site Evaluation
Site evaluation takes into consideration the attributes of your site as compared to the competition. We will remark on accessibility to the site, socio-economic data and perceptions of the site and neighborhood gathered through interviews with community members.
- Demographic Analysis
Demographic Analysis will include a comparison of your MA with a larger geographic area (e.g. county or state data).