Feasibility studies are a combination of a market study and financial analysis used to determine if it is financially feasible to develop a proposed property. They are also performed to evaluate the feasibility of renovating or upgrading an existing property. Feasibility studies determine whether a property is financially feasible and whether its complete and stabilized value are equal to or exceed (1) the total costs to build it, (2) entrepreneurial profit and (3) an adequate return for the capital invested to develop the property.
Patrick O Connor -
About the Author: Patrick C. O'Connor has been president of O'Connor & Associates since 1983 and is a recipient of the prestigious MAI designation from the Appraisal Institute. He is also sa registered senior property tax consultant in the state of Texas and has written numerous articles in state and national publications on reducing property taxes. He continues to set the standard in direction and quality of our appraisal products, adding services ranging from business valuations and business appraisals to cost segregation analysis for income tax reduction.