SITE SELECTION CRITRIA

6.1.The Site and Location Dynamics of Mall Development:

A site is ideal for a mall if it has the right mix in terms of the following parameters:

 Location

 Accessibility

 Visibility

 Market potential

 Right size

 Topography

Site location, scale and size are the primary factors defining the development of every shopping Centre. The site for shopping malls should be selected on the basis of of parameters such as: Accessibility and transport connectivity by car, public transport and service vehicles, the lack of which affects not only customer footfalls but also the efficient delivery of goods and services to the stores located in the mall. Traffic before and after the mall also should be considered. Visibility from approaching roadways, and proximity to a good road network that also connects the physical catchment with its potential residential population. Size and configuration of the site since an optimal size is necessary to achieve critical a mass catering to the catchment area. In the case of mixed-use developments, the various segments should complement each other and work together. Also, attention must be paid in some cases to the ability of the site to offer future expansion if required in the long run. In the case of mixed-use developments, appropriate circulation of all asset classes is important.

 Visibility from approaching roadways, and proximity to a good road network that also connects the physical catchment with its potential residential population.

 Size and configuration of the site since an optimal size is necessary to achieve critical a mass catering to the catchment area. In the case of mixed-use developments, the various segments should complement each other and work together. Also, attention must be paid in some cases to the ability of the site to offer future expansion if required in the long run. In the case of mixed-use developments, appropriate circulation of all asset classes is important.

 Topography and shape of the site, with supporting infrastructure (a regular shape providing maximum space utilization is a preferred parameter while selecting a mall site).

 Current and future competition and its impact, the current and anticipated supply of retail space and the performance of these spaces should also be evaluated.

 The study of the catchment, its demographics and consumption patterns are vital, as it is sales and consumption that will bring in the rentals. Most other costs such as construction and land are controllable and, in most cases, fixed.

Site selection also depends on macro as well as micro location parameters which vary according to the market dynamics prevailing in a particular city. The price land and the financial feasibility of the project play an important role in site selection. Retail performance and retailers’ ability to pay rent is predictable regardless of city and location, so the final potential of a site (and the reven generation of a mall) can be guesstimated.

6.2. Site Selection and control:

The site selection process involves analyzing market issues and comparing the features of various sites. This process involves market research process and how to about finding a site, or choosing one from among many potential sites for commercial/mall development.

1. Analyze the marketplace so that community organizations can utilize the proper concept and tenant recruitment strategy;

2. Assist community groups in finding the most viable place for a service to locate (after having established that the community is under-served in this particular service), both from the perspective of the market and the consumers; and

3. Present criteria that retailers look for in a site.4EXR J

6.3. Market Analysis:

Market analysis helps in identifying development needs or opportunities, attract retailers and other tenants and select a viable development site. The concerns include: estimating the market potential of an area and probable lack of neighborhood services particularly crucial issues for commercial/mall development in an area.

6.3.1. Demographic characteristic: Population, income, number of households; population density can be as crucial as income. Developers will examine aerial photographs to find densely populated areas. Sometimes a very dense low-income neighborhood can score as many points as a low-density high/middle income neighborhood.

6.3.2. Supply and demand: In what sector is the market currently under- served in your community? This would also include an analysis of competing businesses.

6.3.3. Suitable development sites: Do any suitable sites exist given the needs of modern retailers and institutional users like the Government or banks? For example, modern retail sites require a certain depth to provide space for parking.

6.4. Site Specific Evaluation:

The following factors will help one decide whether a particular site is viable for one’s development:

1. Site conditions: Slope, topography, and environmental condition.

2. Physical constraints of site: Utilities, easements, and any existing structures that might need to be demolished.

3. Accessibility and visibility: Roads serving the site, traffic count, proximity to public transportation routes and major intersections, and site’s orientation.

4. Availability of contiguous parcels of land.

5. Size and shape of unit plots: Length and depth of unit plots: developers often want deep parcels

6. Location and neighborhood: What is the context of your site? Is it nearing amenities, institutional uses? Will the proposed development and uses fit in your neighborhood?

7. Zoning: Specified use and requirements such as parking, building height, lot coverage and set-backs.

6.5. Opportunity-Driven Site Selection:

Several different opportunities can result in a successful commercial/mall development. However, developers must conduct their due diligence before acquiring any site. Due diligence includes environmental testing, market analysis, title clearance, and cost estimations. Lack of thorough research can halt or hinder development project.

6.5.1. Opportunities can include:

1. A chance to get cheap site control.

2. A retailer approaching a developer to express interest in a site either that the developer owns or is located within the developer’s neighborhood.

3. A bank offering to finance a development because the site may fall in specific promotion zones where State Government might want development and there are mandatory benefits by banks.

4. A plan completed by the city (Municipal Corporations) which will state, for example, that retail should be developed at a certain location and that the city is willing to subsidize this development.

6.6. Feasibility Study for shopping mall

If your company is considering developing land for a shopping mall and needs to ascertain whether the project is viable, our team at Prospectus.com can assist with your property feasibility study. Property and development feasibility study analyses are common for companies to create prior to breaking ground on a construction project. The report will give needed insight to the principals who can then determine whether their project is even ‘feasible’ to continue. Our seasoned management team employees consultants and engineers to assist with a feasibility project, anywhere in the US and beyond. Our fees are highly competitive and our time frame for completion of such projects is faster than most industry firms, giving our clients a needed advantage when deciding to undertake a real estate or land transaction. Indeed, scores of firms outsource their work to our group as we are known as straight forward and adhere to all budget requirements.

6.6.1. Important Prerequisite for Real Estate Developments

Before spending needed capital on a real estate project, many companies will first need to define their business model. But almost simultaneous to a business plan would be the writing of a feasibility study. Although the costs associated with a feasibility analysis can seem pricey at first sight, not having such a report provided can cost companies many times the amount in loses if a project goes bust. In most cases, such pitfalls can be avoided by writing a feasibility study, especially for property development. There can be little room for errors when dealing with a land development. Incorrect assumptions on zoning laws or the structural engineering design can bankrupt a real estate project. A feasibility study will outline the requirements needed in order to successfully navigate the many issues that arise in real estate development, whether constructing from the ground up, or tearing down an existing structure and then rebuilding.

6.6.2. Development Assessment – Land and Property

Most real estate firms will conduct a property assessment or a land assessment before committing to development. Such an assessment will determine if the project is even ‘feasible’ or worth the time and money to continue. A feasibility plan or development assessment for real estate or construction will also outline the costs associated with the overall project. In some feasibility studies, there will also be sales forecasts based on comps, whether for single family or condo home sales, or hotel occupancy rates. The land and property feasibility study development assessment will help clarify the budget and give needed insight into the potential revenue streams as well as the costs associated with construction.

6.6.3. Feasibility Study vs Business Plan

A business plan is regarded as a road map of sorts. For any business to succeed they must understand their market, their numbers, and the opportunity. Business plans are utilized for all types of businesses, including real estate and development related projects. A feasibility study is like a business plan in that it outlines the overall opportunity and allows for an educated decision about whether to move forward or not. As such the feasibility study is the ‘business plan’ for a land or property. Said another away, if the proposed development of land or property had a business plan, it would be called a ‘feasibility study’. Both are imperative for any project to succeed, and certainly to raise capital.

6.6.4. What’s Included in a Feasibility Study

A feasibility entails many aspects of a real estate development project. Whether one is developing a hotel or many single-family homes, or a school, the report will outline anything from the permit process to the land usage rights. Below are some, but not nearly all, features of a real estate feasibility study report, all of which can be classified as undertaking due diligence before construction begins.

Civil Site and Public Infrastructure Improvements

Land Use and Environmental Permitting

Geotechnical Investigation

Structural Engineering

Environmental Study and Report

Survey (boundary, title research)

Site Planning, Development Program, and Code Review/Compliance

Traffic Plans, Neighborhood Impacts, Schools in the Area Water/Sewage Architect

The aforementioned points are just a glimpse of the many features of a feasibility study.

6.7. Why Write or Make a Feasibility Study?

There are numerous benefits to creating a feasibility study. First and foremost, you would want to ensure that you can actually develop on the proposed land. The property zoning laws may permit or prohibit certain features of the project, such as the height and size of the development. Here are few main reasons for preparing a feasibility study for a real estate development project.

Knowledge: Knowing whether you are allowed to develop and under what terms will save needed time and capital. If a negative picture is portrayed, then you would stop development. If positive news transpires from the feasibility report, then you would continue. Knowing the options is more than half the battle.

Property Assessment: Before committing capital to any development, you would ensure that the concept itself is viable and therefore tested. Conducting a land assessment prior to development can save the company money and time.

Project Confidence: Similar to writing a business plan, a feasibility can give the principals the needed confidence boost to move forward with the project. If the feasibility report shows promising results, both financially and strategically, this can give convince the team that their assessment for development is correct. This can help when capital is needed to be raised or allocated from investors. A confident management team, with a factual feasibility document in hand, can add great strength to the company’s mission.

Funding and Capital Raising: A well written feasibility study, similar to a well written business plan or prospectus, can aid in the strength of the business and alleviate fears from investors and lenders. While the feasibility study is usually prepared for the management team to decide if the given project is even feasible to develop, the document itself can be used as a powerful tool when raising capital and approaching investors.

6.8. Financial Feasibility Study for Property Development

During the initial phases of the feasibility study’s development, the writing of the financial projections and budgets needed to implement the feasibility study would be