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Why do you need a feasibility assessment?

Developing commercial property, like developing residential property, is all about the preparation. As any good painter and decorator will tell you, it’s 90% preparation to 10% finish. To achieve good end results, you have to do all the tough, gritty preparation work first. Try to rush it and you’ll be left with a poor end product - like a partially sanded wall covered in cheap paint, where you can see all the lumps and bumps.

 

Perhaps the most important part of preparation work you can do with any development is a feasibility study, or perhaps that should be the plural, ‘studies’, as the chances are you may need to do more than one of them.

 

A feasibility study is an assessment of all the important factors that may be involved in a project. You need to weigh up all the pros and cons of the project and back these up with cold, hard figures. Feasibility studies will highlight potential pit falls, assess the suitability of the development for the proposed end use, and take into account external matters such as the difficulty of planning permissions, change of use permission and the like.

 

Omit any of this information from a development or renovation plan and you could be in for a nasty surprise down the road. Do your homework, carry out a thorough feasibility assessment and you stand to make a good return on your investment. Alternatively but equally important, you could find out that the development is not worth proceeding with at an early stage.

 

It’s worth stressing too that feasibility studies are equally as important for leasing properties, accommodation strategies and to assess the benefits of buy versus leases for your company’s future. So bear all these options in mind when reading the following information.

 

Who can carry out a feasibility assessment?

 

It is not a legal requirement, so in essence anyone can do it. But then the whole point is that it is thorough and complete, so you are always better off going with a commercial property specialist. This may involve a cost but a professional assessment will take into account factors such as acquisition outlays, approval, and leasing and sale costs.

 

It also will involve liaising with a number of officials and other professional people, including solicitors, town planners, architects, engineers and surveyors, amongst others.

 

 

If you decide that the project is one you would like to take on, then you will need to have every aspect of the feasibility study legally ratified during the contract and due diligence period. Again, this is part of the overall preparation process of commercial property development that will result in the best finish possible. 

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