Doing a market feasibility analysis for an office development isn't exactly exciting, but its an important exercise to undertake to manage risks levels. If you find yourself asked to determine the feasibility of office space - either for an individual developer, or at a broader municipal / regional level - the following resources will be helpful.
For an overview of the basics of conducting a market analysis for office buildings, download this excellent PowerPoint presentation by Wayne Foss which covers:
- Building Users
- Building Terms
- Gross Building Area vs Rentable Area vs Usable Area
- Building Typologies
- Location Analysis
- Market Positioning
- Demand Forecasting
- Competitive Supply Forecasting
- Project Capture
One of the hardest variables to determine often seems to be the appropriate amount of office floorspace to allocate to each employee. For help with this, take a look at the following data which breaks down this variable by detailed business type. It also has data on employee density for various retail uses, which is useful if you are trying to create an economic impact assessment.
Building Area Per Employee by Business Type