Feasibility studies are an important part of land development. They help determine whether or not a particular site can be developed into a construction project. If the study finds that the lot is too small, too large, or cannot feasibly support the design of the proposed building, then it becomes clear very quickly that this site should not be pursued any further.
Feasibility Studies Help Determine the Price of a Specific Site
Many developers will wait to do feasibility studies until they have found the specific lot for their project. This is a big mistake! Not only can you get stuck with purchasing a property that is much more expensive than it should be, but you also lose out on future profits when trying to build your project. If your design calls for a 20,000 square foot lot and you discover that the only lot available has only 15,000 square feet of space, then you will have to alter your design.
They Help Identify Potential Problems and Risks
A feasibility study can also help identify potential problems and risks associated with a proposed project. For instance, if a study finds that the lot is too small for the proposed building, this could lead to complications down the road. By identifying these potential problems early on, developers can take steps to mitigate them and reduce the risk of things going wrong later on.
They Help Determine a Project’s Feasibility
Along with helping identify potential problems and risks, a feasibility study can also help assess a proposed project’s feasibility. This includes assessing factors such as the cost of the project, the time it will take to complete, and whether or not the site can support the building’s design. If the study finds that the project is not feasible, then it’s best to abandon it altogether!
They Can Help Secure Funding for a Project
If a feasibility study determines that a proposed project is viable, it can be used to secure funding from investors or lenders. This is because it provides concrete evidence that the project is worth investing in, which can make it easier to get funding approval.
They Help Ensure a Project’s Success
Ultimately, a feasibility study is meant to help ensure a project’s success. By identifying potential problems and risks early on and assessing the project’s feasibility, developers can reduce the chances of things going wrong down the road. This means fewer headaches for everyone involved and a smoother, more successful project overall!
They Give the Building’s Design a Reality Check
The last and maybe most important reason for a feasibility study is to provide a reality check on a proposed building’s design. This includes assessing factors such as the unit mix, size of each unit, and layout of the building itself. For example, if a study finds that too few units have been proposed, this could mean that the building won’t be as successful as initially thought. By performing a feasibility study, developers can get an accurate idea of what is and isn’t possible with a proposed project, which can help ensure its success.
If you’re planning on undertaking a land development project, it’s important to have a feasibility study done first. This will help you assess the project’s viability and determine whether or not it’s worth pursuing. If you’re unsure about how to go about conducting a feasibility study, or if you want to learn more about land development and feasibility studies in general, we recommend contacting an expert in this field.