Developments in the world economy and in individual markets are dynamically reshaping real estate markets. These changes affect the ways in which we finance and use our properties and also result in new types of services being delivered to market participants.
Such volatility means a lot of real estate advisory services have to be tailor-made to meet clients’ precise needs in specific areas. The advisors delivering these services need to have superior knowledge and experience that often extend far beyond the real estate market.
While “classic” real estate services are still in high demand for many clients, these, too, have to be of the highest quality in the new environment.
Among these services are Highest and Best Use analyses. These include the identification of a property’s use—physically possible, legally permissible, appropriately justified by market conditions, financially feasible and, on top of everything, resulting in the highest possible value of the property. In many cases, this service requires considering several scenarios of potential property development.
In taking the most important investment decisions, it might be necessary to support them with an external feasibility study. In most cases, such studies consider a property’s development, redevelopment, extension or modernization. Beyond providing typical measures such as NPV and IRR, a feasibility study is also a tailor-made service shaped to meet the client’s particular needs.
Sales and acquisitions are among the most significant actions when it comes to properties. Because of this, it becomes vital for investors to cooperate with a reliable advisor who will indicate appropriate contractors and provide support during negotiations. Thanks to its extensive database of both national and international contacts, KPMG is capable of delivering brokerage services that connect parties and initiate off-the-market deals. What’s more, our clients can benefit greatly from commercial due diligence, which includes a detailed analysis of the commercial aspects of the property function and risk profile, with an eye toward cash flow stability and safety of future rental incomes. This service may be enhanced to include in-depth advice from legal and technical experts.
During non-transactional periods, it becomes important to properly manage the property’s value and potential. In such cases, asset management advisory services can help to protect and maximize the value of real estate assets. These days, asset management is undergoing rapid change that is reshaping both its nature and its scope.
Retail developers and investors are likely to be interested in catchment area analyses, which are intended to estimate the number of potential customers of a retail facility, their purchasing power, and the impact that competitive schemes have on both.
Our analysts also prepare tailor-made market reports.