Mixed Use Properties Feasibility Studies - Wert-Berater, Inc

DENVER - April 30, 2016 - PRLog -- The growth in the Mixed Use real estate segment has been spurred by increased land density promoted by city planners.  In the most recent 26 months, we have provided 20 feasibility studies for mixed use properties in the state of California alone.

City planners are pressing developers to increase density and more uses such as residential apartment combines with retail, office and entertainment such as movie theaters.  Parking is going subterranean and buildings are increasing in height.  In areas such as Los Angeles air rights are trading again as developers are seeking increased building heights.

The challenges in these projects is cost per square foot.  As building heights increase so do the cost, time for construction and risk.  Risk is often associated with missing the mark on the market.  Planning for a project that can take 36 months or more the develop means that developers must forecast and be prepared for a downward shift in market conditions, yet maintain financial feasibility.

Presales and pre-leasing can mitigate these risks.  However, according to the Marshall & Swift company, costs are increasing each year.  This means that if costs are increasing 3.5% per year, a developer can experience a 10.5% cost increase in their complex before it's finished.  In the development business, adding $10.5 million to an already $100 million project can evaporate profits for investors.

The feasibility study is a crucial document prepared by experienced analysts.  All items of risk must be reported.  A Wert-Berater, Inc. feasibility study includes a full risk assessment.  Our ARGUS Certified analysts work hard to be certain that all factors have been considered.

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