Research for Real Estate Developers
- Erich Muhlanger
- Aug 10
- 3 min read
Updated: Oct 11
Developers, you have a lot to consider when choosing a project. There are many variables within your control, and some outside your control, that can dictate success or failure on a project.
In the fast-paced world of real estate, research and data analysis has become a crucial tool for making informed decisions. Whether you are a seasoned investor or developer, understanding how to analyze data can give you a significant edge. MRG uses traditional development metrics as well as novel data analysis techniques to most fully identify the strengths, weaknesses, and thus potential outcomes for a development project.
In real estate, this means analyzing property prices, rental and vacancy rates, demographic information, and economic indicators, to better understand project risks and help project outcomes .
Let MRG help you make the smartest investment choices.
Key Project Milestones to be Analyzed
Risk and financial analysis for a Development Project are always useful, but especially at the times of the following key decision points. Let MRG help you answer these critical questions:
What: Project to Launch? Projects can generate Big Picture excitement, but do you know about underlying fundamentals of a development and potential hidden risks? MRG helps you classify your venture via risk analysis and metric quantification as one worth taking a plunge... or not. MRG can create a Feasibility Study for you which examines qualitative strengths and risks, in addition to creation of a tailored financial model which scores a development opportunity as viable or not. More scaled down, a Pro Forma is an option as an output of the generated financial model, and will provide a financially driven guidance for a project's potential.
How: to Maximize Project Optimization? Identifying a project that has good potential for a successful exit is just the first step in creating profit. Once the project has started, execute the project to maximize the earning opportunity of that project. Our Sensitivity Study identifies the specific variables, in context of the overall financial model, that will lead to maximizing your profit, as well as highlighting those that if they slip, will cost your project the most financially.
When: is the optimal Exit Point? Various projects will generate positive financial metrics and returns earlier or later in a project timeline. Defining when a project will become profitable, utilizing a set of ~ 10 metrics, will help contextualize when an attractive Return on Investment would be achievable for an investor or developer. The Feasibility Study and Sensitivity Study will both provide valuable timelines on optimizing your exit window, both for maximizing returns, and minimizing timescale of ownership.
Let’s dive into the valuable analyses MRG offers to help answer the critical questions discussed above, thus creating value for your team and project.
One of many graphical outputs from Project Financial model, showing sensitivity effects, and modeling ROI % as a guidepost for exiting a project successfully. 
Radar Chart "Score" for 10 Key Financial and Market Metrics
Final Thoughts
Research and Data analysis are powerful tool in the real estate industry. By utilizing the techniques discussed in this post, MRG is excited to help you enhance your research, financial modeling, to help make more informed decisions.
Whether you are looking to buy, sell, or invest, understanding data analysis can give you a competitive edge.
By investing in this research, which gathers relevant data and calculates the critical metrics, you can lay a solid foundation for your analysis.
Embrace the power of research and data, and watch your real estate endeavors flourish.
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