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Location Analysis

The most important considerations in the development process are whether a project will be successful in the marketplace. THK Associates has a staff of professionals in the Marketing and Economics Division who conduct economic and demographic analyses and financial feasibility studies. The results of these analyses allow a client to test his ideas against the market and provide the designer with an economic basis for land planning decisions. Financial feasibility studies are also developed for specific projects, including pro forma income statements, cash flow analyses, and determination of financial rate of return. Socioeconomic studies are also undertaken for public agencies and private clients as part of the land development process.

“A primary goal of our market research is to conduct the necessary economic analysis to

1) Gather the data to quantify the economic spending for a product or service under consideration in each location under consideration,
2) Calculate the degree that each prospective location is under-served or over-served.
3) Provide a client with quantitative data to identify the market potential of each location under consideration.

Research Goals

Data is critical to real estate market analysis; without it, there can be no analysis. Market data, financial data, and property data are all necessary to support site and cash flow analysis. Today data is available from many sources, from printed data to massive amounts of online data. The question is: which data and data source(s) should the analyst use?

Simply reviewing printed government reports is not sufficient to develop the meaningful data essential to remaining competitive. The process involves questions such as these:

  • What data source(s) do I use?
  • How much and what type of data should I develop?
  • Do I collect data using my own geographic information system or do I use a commercial demographic service?
  • How much time and money am I willing to spend on data collection and analysis without affecting my core competency?
  • Will I need to specialize in a product type to become proficient at data collection?

Data is critical to meet client demands to provide the most accurate, timely analysis possible to compete in today’s real estate market. The need to accurately interpret and convey a complex demographic analysis is more important than demonstrating your ability to operate a computer program.

In this module you will identify the basic skills necessary to develop and identify sources of market and site data, methods of classification, and interpreting data, as well as examine some computer tools that will assist in your analysis.

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