Real Estate Consulting

Real estate consulting covers a breadth of areas including market rent study, market study, feasibility study, highest and best use analysis, cost segregation and analysis for an under performing asset. Clarifying the client's objectives and expectations is the cornerstone of a successful real estate consulting engagement.

Real estate consulting begins with a detailed discussion regarding the concerns, constraints and time frame related to an assignment. Through a series of interactive questions regarding relevant topics the scope of work and reporting requirements can be developed. Real estate consulting could include the following:

• Highest and best use for 5,000 acres in a metropolitan area;
• Highest and best use for 3 acres on a major thoroughfare in a metropolitan area;
• Highest and best use for 40 year old office building in an area of regentrification;
• Market rent study on a floor-by-floor basis for 50 story office building;
• Market rent study on a floor-plan by floor-plan basis for 256-unit apartment complex;
• Evaluation of efficacy of leasing effort for industrial building;
• Evaluation of management for an office building;
• Review of level of operating expenses for an apartment complex;
• Evaluate whether proposed scope of work to renovate an upgrade an apartment complex is appropriate;
• Develop scope of work to renovate and upgrade an office building;
• Confirm whether a retail strip center is the highest and best use of a site; if yes, develop highly detailed design characteristics including building dimensions, type of materials, number of parking spaces, layout, ideal tenant for end cap, level of tenant improvement to provide first generation tenants, elevation, type and quality of signage, type and amount of landscaping, etc.;
• Review real estate portfolio and suggest changes based on market conditions, market trends, and the investor's objective;
• Prepare an evaluation of market status and likely trends for an individual asset to provide guidance regarding whether or not to sell;
• Due diligence regarding a pending acquisition;
• Due diligence for a contemplated disposition.

Real estate consulting includes many activities. Clearly defining the clients’ objectives helps generate an appropriate scope of work. Engagement agreements should require consultants to call the client during the assignment if certain conditions occur (i.e. initial analysis indicated proposed property is not likely feasible).