This type of report should ultimately answer whether a project should be initiated. Historically it was the “rubber stamp” developers used to get their projects funded.
In essence it is a two part study, the first part relates to market research in order to understand the demand and supply factors and the second is the projected financial performance. If appropriate a sensitivity study is conducted in order to test the veracity of the inputs within the financial model.
In a close to perfect market that report would suffice, however in our experience that is rarely the case, markets change and it is unusual that initial projections reflect reality upon completion. In order to overcome this inherent shortfall of these studies we perform periodic reviews of the study so that changes can be adapted to as quickly as possible to reflect any changes within the market circumstances. In certain instances where there have been quick and dramatic changes, the periodic review allows for the consideration to adapt to other uses within the project or to alter the offering.
As with any new project, it is the avoidance of unexpected issues that lead to projects concluding successfully. It is the failure to be able to adapt to changes that result in projects falling short of their desired target. This is why we are usually involved from the pre-design phase through to post completion.