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Rainmaker
Marketing Corporation is the retail industry's "go-to guys"
for shopping center
feasibility studies (market
feasibility studies and financial
feasibility studies) for new construction projects and multiple
property roll-outs throughout North America.
Rainmaker
has completed literally hundreds upon hundreds
of project feasibility studies over the past 20 years in every major
U.S. market and for all types of income-producing properties, including
commercial shopping centers. Rainmaker uses a well-defined
methodology that meets all of the industry benchmarks.
Market
Feasibility Studies
The
first step in the process is always the same; determine the viability of
the project in terms of the supporting market for the project.
Markets are analyzed in terms of an empirically assumed geographical
primary marketing area that is defined in terms of its forecasted
demographics and penetration of existing, planned and proposed
developments that would be, more or less, directly competitive with the
proposed center.
Our
approach is to create a multi-tiered market assessment that includes:
-
the
latest demographic information into a demand model that
provides:
-
general
demographic information pertaining to the subject property's
geographical primary marketing area to spot any emerging trends
that may have an impact on the proposed project; and
-
sales
projections on a Net Rentable Square Foot ("NRSF")
basis by each major NAICS code; and
-
space
plan assignments based upon square foot sales (subject to field
verification).
-
a
field investigation wherein the findings of the demographics
analysis are confirmed (or repudiated) based upon changes in the
supply of commercial retail shopping center developments over the
past 12 to 18 months as these developments are not typically
accounted for in the demographics analysis (by its very design, most
demographic information is already 12 to 18 months old by the time
it is released for commercial use). The outflow of the field
investigation includes:
-
property
rental rates compendiums.
-
property
CAM rates compendiums.
-
occupancy
rates by shopping center property class.
-
total
NRSF of space by class.
-
dark
store analysis.
-
tenant
improvements allowance analysis.
-
a
reconciliation of the demographics demand model with the findings of
the field investigation to generate a final space plan
recommendation, leasing program recommendations and ancillary
services and programs recommendations.
Rainmaker
typically completes these assignments in 30 to 45 days.
Financial
Feasibility Studies
Our
financial feasibility studies are pro forma financial presentations
based upon the findings of the market study as to the space plan,
routine rental rates, CAM fees/charges, percentage rents, tenants
improvements, capital financing structure and syndication models all
rolled up into a consolidated report that includes a technical
discussion of the empirical assumptions, charts, graphs and a
presentation of all notes for the construction program, the operating
program and a consolidated pro forma financial presentation that can
easily exceed 250 pages.
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