Retail Market Feasibility Studies...

The prototypical retail market feasibility study prepared by Rainmaker Marketing Corporation focuses on a three-step process.  The retail market feasibility study consists of conducting an initial demographics analysis of the retail industry indicators, completing a field investigation to determine property attributes and then a final demographics analysis that reconciles the initial demographics analysis with the findings gleaned in the course of the field investigation.

The reasoning is fairly straight-forward and easy to understand (at least conceptually).  Demographic information collected by third-party data vendors represents the past; creating a snapshot of what happened in the market a year to 18 months previously.  This leaves a sizable gap in the demographics analysis that may have resulted in additional retail properties coming online to address the demand.  The potential sales of these facilities has to be reconciled in the demand model so that an acceptable level of accuracy can be obtained to substantiate (or repudiate as the case may be) the development program proposal of the client.  RMC undertakes a field investigation to confirm the demographic data, as well as determine the lease terms, rental rates, vacancy rates, property amenities and basics for the leasing package.

In addition to confirming some fundamental market issues for the developer, the feasibility study also provides the starting point assumptions for the financial feasibility study.  If you think of the due diligence documentation process as a pyramid, you find the market study at the foundation - everything to come builds on these findings because our economy is based upon the principles of market capitalism, where consumers/end-users choose the winners and losers by virtue of their spending decisions.

RMC is the firm to turn to because commercial real estate due diligence services are our primary business activity.