Market & Development
Commercial Market Studies in Philadelphia
Defensible market studies that assess feasibility for development and lending decisions.
Before purchasing, developing, repositioning, or financing commercial real estate, it is important to understand whether sufficient market demand exists to support the proposed investment.
We provide commercial real estate market studies throughout Philadelphia for developers, investors, lenders, property owners, corporations, attorneys, and other clients evaluating real estate opportunities.
A market study examines the competitive environment surrounding a property or proposed development.
Depending upon the assignment, the study may evaluate existing supply, current demand, vacancy, rental rates, comparable properties, new construction, proposed development, historical absorption, projected absorption, demographic trends, employment, economic conditions, property sales, and development trends.
The analysis can be tailored to apartment properties, industrial buildings, warehouses, office developments, retail centers, mixed-use projects, medical properties, land, and other commercial uses.
Who Needs This Service
- Developers
- Investors
- Lenders
- Property owners
- Corporations
- Attorneys
Why This Appraisal Is Different
A proposed development may appear attractive when viewed only from the perspective of the individual site. However, the broader competitive market may reveal important risks.
For example, a strong apartment market could have thousands of new units under construction, potentially increasing future competition. An industrial submarket may currently have low vacancy but also contain several major projects scheduled for delivery. Conversely, an area experiencing limited current development may have significant unmet demand.
A comprehensive market study attempts to identify these factors before substantial capital is committed.
For proposed development, the study may estimate achievable rent or sale prices, stabilized occupancy, absorption period, competitive positioning, and demand for the proposed product.
For an existing building, the analysis may identify opportunities for repositioning, renovation, redevelopment, or changes in tenant strategy.
Lenders may also use market studies when evaluating the assumptions underlying construction or acquisition financing.
Our objective is to provide independent market evidence that helps clients understand both opportunities and risks associated with a commercial real estate decision.
The Appraisal Process
- 1
Define the proposed project, use, and target market.
- 2
Inventory existing and pipeline competing supply.
- 3
Analyze demand and project a realistic absorption and capture rate.
- 4
Assess whether the market supports the proposed project and timeline.
- 5
Deliver a documented study with a defensible feasibility conclusion.
Commercial Property Types
- Apartment properties
- Industrial buildings
- Warehouses
- Office developments
- Retail centers
- Mixed-use projects
- Medical properties
- Land
Philadelphia Market Context
Philadelphia's commercial property markets vary substantially by neighborhood and submarket. Demand for Center City office space, suburban industrial facilities, neighborhood retail, multifamily housing, and development land is influenced by different economic and demographic factors.
Accordingly, the competitive market should be defined based on how actual tenants, buyers, and investors behave rather than solely on municipal boundaries.
Market studies are frequently used alongside feasibility studies and highest and best use analyses.
Valuation Methodology
Market & Development Analysis
The appraiser integrates supply, demand, absorption, and competitive position to reach a defensible conclusion about whether the market supports the proposed project.
Frequently Asked Questions
How is a market study different from market research?
A market study reaches a feasibility conclusion about whether a specific proposed project is supported by the market, integrating supply, demand, and absorption into that assessment.
Can a market study support a construction loan?
Yes. Lenders commonly require a market study to assess whether the market supports a proposed project's lease-up, and the study is documented for that use.
Does the study account for competing pipeline projects?
Yes. Existing and pipeline competing supply is a key input to the absorption and feasibility conclusion.
What property types do you cover?
We prepare market studies for multifamily, office, industrial, retail, medical office, and development sites across Greater Philadelphia.
Related Valuation Services
Need a Commercial Market Study in Philadelphia?
If you are considering a development, acquisition, redevelopment, or major investment in the Philadelphia market, contact us to discuss a commercial market study tailored to the property and proposed use.
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