When Should You Update Your Market Study?

By March 22, 2021Uncategorized
Market studies are conducted for various reasons and at various points. The reasons include making a data-based decision about whether or not to proceed with a development, informing potential partners about the value of an opportunity, and ultimately securing financing for a development. At the early stage of the process, a good market study will provide feedback on where you can expect to draw the majority of your residents, the proposed features of the development including overall size, the composition regarding levels of care, unit mix and proposed pricing. Assuming the project is still in the planning stage, it should also offer suggested modification, if appropriate. However, in addition to the reasons presented above, there is great value in updating a market study even after a community has opened. It will insure that you are well informed about existing competitors and planned competition. The latter will prevent you from being blind-sided by a new community that may be after some of your market share. It will also give you a sound basis for making modifications to your existing community, such as what you include in your base fees vs. services that can be offered for additional fees, and whether you have underperforming units that don’t compare favorably to your competition. The latter will help you to determine, architecturally, if modifications can be made. Fundamentally, its always a good idea to be well informed about the market in which you operate. Word Cloud on blue background.