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EDSR INFORMATION 03-14-2011
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EDSR INFORMATION 03-14-2011
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3/11/2011 10:04:28 AM
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City Government
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3/14/2011
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• What is the demand? From what type of business or companies? For what type and size of <br />space? <br />• What is the historical and current absorption? <br />• How are the debt and equity markets for your deal? Can it be financed? By whom? Under what <br />terms? What is the blended cost of equity and debt? <br />Know your Competition <br />You will want to know every site that you will compete with. <br />• What are the list prices, and what have been the actual sale prices? Is the pricing on a net or gross <br />land area basis? <br />• How does your site compare in terms of dimensions and configuration. Is it more or less <br />efficient? <br />• How does your site compare in terms of image, ingress and egress, visibility and amenities? <br />• How will your development fee structure and approval process compare to your competition? <br />You need to consider SAC and WAC charges, park dedication fees, building permits, special <br />assessments. Equally important, what is the speed and clarity of your governmental approval <br />process vs. competitive sites? <br />• Does the competitive seller/developer have any special motivations or stresses that can affect the <br />price? Do you? <br />• How quickly can the competition make decisions, come to terms of an agreement and close? <br />How quickly can you? <br />• What will be the taxes, special assessments, park or downtown association fees, or other ongoing <br />costs for your site as well as the competition? <br />• Are there environmental, wetland, geotechnical or offsite infrastructure or other issues that can <br />have a significant impact on the cost, efficiency or timing of the transaction... both on your site <br />as well as the competitors? <br />• What infrastructure is in place and what needs to be built? Consider mass grading, storm water <br />retention, sewer and water trunks and laterals, and trails. <br />• Will your or the municipality you are competing with offer special economic incentives, and if <br />so, in what form, at what level and under what terms? Under what circumstances and at what <br />levels are you prepared to offer economic incentives? <br />Know Your Customer <br />To determine your sales strategy and negotiate the best price you need to know the objectives of the end <br />user(s) of the site. <br />• Where are they coming from and why are they considering abuild-to-suit? <br />• Does abuild-to-suit offer them certain efficiencies or other business advantages/ <br />• Do they have renewal options in their existing space or could they lease an existing building <br />elsewhere? <br />
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