NEW APARTMENT CONSTRUCTION
What are NAC studies?
DALA’s New Apartment Construction (NAC) feasibility studies are one of the most potent tools available to you as a developer, financier, or institutional investor as you begin the process of developing or investing in new rental apartments. You understandably need to have the maximum available information before making a decision—new apartment construction is an expensive and risky proposition. How many new rental units can be absorbed into the market? What amenities will be right for the market? Who is the target demographic? Will rents be high enough to create value? Bottom line: is your project feasible?
What questions do we answer?
DALA’s new apartment construction feasibility studies answer four main questions:
What depth-of-market or demand exists in the rental market?DALA will conduct a market survey to estimate how many new rental units can be absorbed into the local rental market.
Should the client build?DALA will make a recommendation to the client to either proceed with the project as planned, or proceed with modifications, or do not proceed at all. Our recommendation will be explained in detail and supported with our survey findings.
What should the client build?DALA provides a detailed description of the best and highest use for the project based on what our analysis has determined will be right for the local rental market.
What rents can be achieved?DALA provides rent recommendations for the proposed project based on the findings of our market analysis, including unit mix, suite sizes, and amenities. We also prepare unit-by-unit rent grids for the project, if requested by the client.
How do we conduct studies?
DALA’s NAC feasibility studies are custom designed to fit your requirements and provide you with detailed analysis of market depth, competitors, rents, amenities, location, and demographics. DALA’s experienced market analysts and surveyors gather real-world data in the field that is timely and comprehensive: we use primary information sources only and do not rely on the opinions of third parties. Final reports are provided in print and electronic formats and are presented and explained in person to the client.
What recommendations do we make?
DALA’s NAC feasibility studies provide clients with detailed, actionable recommendations on all aspects of the project including location, curb appeal, signage, marketing, advertising, website, unit mix, unit sizes, amenities, appliances, finishes (common areas and en-suite), parking, storage lockers, rental offices, hiring leasing agents, training leasing agents, and all aspects of operating a leasing program. Our recommendations are designed to provide the client with the information needed to decide if a project should proceed, and, if the decision is “yes”, an action plan to market and lease-up the project. We also include a timeline to help the client synchronize marketing and leasing with the construction schedule.
Who finds our studies useful?
Clients who use DALA’s NAC feasibility studies include developers, financiers, and institutional investors: in other words, people and organizations engaged in the development and financing of new apartment construction. Developers want to know if their location is good, will units be absorbed, what amenities should be included, what unit mix is best, and what rents could be achieved. Financiers and institutional investors want to know if the project is financially feasible and will provide an acceptable return-on-investment. In most new apartment construction projects, all three types of clients work closely together and recognize that detailed market knowledge is essential to make the best investment decisions.
Contact DALA’s apartment experts for the best market knowledge out there!