| Feasibility Studies | | | | regarding market rent, occupancy and absorption and |
| Feasibility studies are a combination of a market | | | | 2) judgment regarding the amount of entrepreneurial |
| study and financial analysis used to determine if it is | | | | profit and return for the equity investor necessary to |
| financially feasible to develop a proposed property. | | | | make a property financially feasible. |
| They are also performed to evaluate the feasibility | | | | O'Connor & Associates is the largest independent |
| of renovating or upgrading an existing property. | | | | appraisal firm in the southwestern US and has over |
| Feasibility studies determine whether a property is | | | | 40 full-time staff members engaged full-time in |
| financially feasible and whether its complete and | | | | valuation and market study assignments. Our |
| stabilized value are equal to or exceed (1) | | | | expertise includes feasibility studies, valuing real |
| the total costs to build it, (2) entrepreneurial | | | | estate, business personal property, business |
| profit and (3) an adequate return for the capital | | | | enterprise value, purchase price allocation for |
| invested to develop the property. | | | | businesses, valuation for property tax assignments, |
| Following is a summary of the steps in performing a | | | | partial interest valuation, estate tax valuation, expert |
| feasibility study: | | | | witness testimony and valuation for condemnation. |
| - Develop scope of work with client; | | | | We have performed hundreds of feasibility studies. |
| - Gather data (rent comparables, properties under | | | | To obtain a quote or further information for a |
| construction, proposed properties, market occupancy | | | | feasibility study, contact either George Thomas or |
| and absorption, submarket occupancy and absorption | | | | Craig Young at 713-686-9955 or fill out our online |
| and data for economic drivers which impact future | | | | form. |
| prosperity for the real estate market); and | | | | The appraisal division of O'Connor & Associates is a |
| - Analyze data to develop opinions of market rent, | | | | national provider of commercial real estate appraisal |
| stabilized occupancy and the time likely required for | | | | services including cost segregation studies, due |
| the proposed property to reach stabilized occupancy. | | | | diligence, insurance valuations, expert witness |
| Most market studies focus upon the revenue portion | | | | testimony, tax reductions, real estate consulting, |
| of a profit and loss statement. They do not address | | | | feasibility studies, financial modeling, gift tax |
| operating expenses or the value of the property at | | | | valuations, highest and best use analyses, casualty |
| stabilized occupancy. A feasibility study addresses the | | | | loss valuations and HUD map market studies. |
| factors in a market study and also addresses | | | | All commercial property types benefit from our |
| operating expenses and the value as stabilized. | | | | appraisal services including department stores, |
| Feasibility studies also address whether the indicated | | | | research and developments, lumber storages, fast |
| market value is sufficient for the property to be | | | | food restaurants, convenience stores, retail centers, |
| financially feasible. | | | | airplane hangars, lodgings, daycare centers, hotels, |
| A feasibility study involves two areas where | | | | truck stops, manufacturing/processing facilities, |
| seasoned judgment is necessary: 1) judgment | | | | greenhouses and auto dealers. |