← Part of the Valley Blueprint Network

Market Feasibility Analysis

Applicable Community Size
Your rating: None Average: 3 (1 vote)

A Market Feasibility Analysis determines the likelihood that a proposed land use or development will fulfill the objectives of a particular investor or community. For example, a feasibility study for a proposed housing subdivision should:

  • Estimate the demand for housing units in the area;
  • Estimate the absorption rate (expected annual sales or new occupancy of a particular type of land use) for the project;
  • Discuss legal and other considerations;
  • Forecast Cash Flows; and
  • Approximate investment returns likely to be produced.

Though it is helpful to have development sites in mind to complete a market feasibility study, it is not necessary.  A market study can help a community understand its economic strengths and weaknesses.  These studies analyze spending patterns, incomes, leakage (sales revenues leaving the community) and service gaps.

Cities and Counties often see either a gap in services/demand for services or see an opportunity within their community, but need to know whether or not the gap/demand is enough to make a project feasible.

Studies can be done for specific uses like housing, lodging/conference, retail, office/commercial, parking, recreation opportunities, special events, community uses (like museums, theatres, and music venues) as well as for neighborhoods, focus areas or districts such as a downtown feasibility study.

The tools in this toolbox focus on various types of feasibility studies and how these studies inform the development process. 

Help Us Improve This Tool

Suggestions for new case studies, templates, and resources
By submitting this form, you accept the Mollom privacy policy.