Definition / Objective
Determine the market rent of a particular asset for decision-making purposes of the client. The principle needs of the client are represented below:
- The market rent of an asset
- Present the conclusions in a presentation to the clients and interested parties
Property Types / Opportunity
To develop a rent analysis for an asset or portfolio with the following objectives.
Identify the rent value taking into the account the following principal factors (not limited to):
- Location
- Standard of construction
- Market in which the asset is located
The main asset classes for which rent analysis’ reports are ordered:
Industrial, logistics or factories – usually these are build-to-suit projects for which the rent must be defined. The report allows for developers to negotiate with clients and have a third-party opinion to back up their negotiations.
Office Project (greenfield) – sometimes there is a need for the study of the projected rents of a project during the planning process. Rents are extremely sensitive and can determine the feasibility of a project. Developers sometimes need a quick concise study that validates the rent input for a particular development.
Approaches, Relevance & Methods / Solution
Take the following steps to develop a rent analysis report:
- Interview with the interested or involved parties
- Evaluate and prepare document request list
- Research comparable information (through databases or by proprietary research teams)
- Presentation to client, and resolution of doubts – changes
Deliverable Structure & Scope
- Analysis of the asset
- Physical attributes
- Location analysis
- Zoning analysis
- Market delimitation
- Comparables analysis
- Concluded rent value and considerations
