A Word to the Wise – A Look at Feasibility Studies
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by admin
- October 23, 2014
- Market Monitor, What We're Reading
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Here comes the self storage development train. After living through two booms and two busts in my real estate career, it has become clear that real estate peaks and troughs are very much accelerated by the development of new product, which typically begins near the middle of the real estate cycle. In order to make the most of their development efforts, we have learned that the two most useful tools in a developer’s toolkit are 1) a rational and critical feasibility analysis (RCFA) and 2) luck.
History has shown that new development comes on the heels of the upswing of the real estate cycle. This month, Ben Vestal discusses the importance of a feasibility study when considering self-storage development and some common mistakes that developers make when evaluating their potential projects.
