What Does a Senior Housing Development Market Study Cost?
Due to the current economic recession and downturn in the housing market nationwide, now more than ever it’s important to seek expert advice when pursuing a new senior housing development project. Like all things, clients get what they pay for when they are selecting a consultant of any type, whether it’s an accountant, architect, attorney, financial consultant, or a market feasibility expert.
At Maxfield Research Inc., the Preliminary Demand Estimate and the Full Feasibility Study are the two most utilized services sought by senior housing developers. A Preliminary Demand Estimate is designed to show the depth of the market (number of units currently supportable as well as five years out), after taking into consideration demographic and economic characteristics of the senior household base and analyzing the senior housing market conditions at a high-level. Pricing varies by location and the proposed project, but typically averages from $4,500 to $5,500.
If the Preliminary Demand Estimate analysis reveals sufficient potential demand for additional senior housing products, a Full Market Feasibility Study can be completed that would refine a specific development concept based on the site, a thorough analysis of the performance of competitive projects, and an estimate of the absorption period to reach stabilized occupancy. A Full Feasibility Study is also suitable for lender review and financing. The price to conduct a Full Feasibility Study also varies by location and the number of senior housing types reviewed, but typically averages anywhere from $8,000 to $14,000.
Should the Preliminary Demand Estimate be completed first prior to the Full Feasibility Study, the cost of the Preliminary Demand Estimate would be applied to the Full Feasibility Study if completed within 180 days. The investment in a market study will pay dividends by providing a recommended senior housing concept that will maximize returns.
1 Comments
I am working on a 60 unit assisted living housing facility for the Santa Maria, CA area. I am looking for a way to identify and rate consultant's, managment companies, and to finalize construction demand for such a project. Who or what would you recommend?
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