Market Segmentation and Selection

If you are growing your portfolio of commercial or multi-family properties, you are most like dependent on deal flow through your acquisitions team or more than likely you are one of the principles and do much of your sourcing yourself. You depend heavily on brokers to bring you deals. However, you find many of the deals presented don’t really fit your competitive advantage and optimal acquisition target. They are presented moreso because they are listed and the broker seeks to push that property into a transaction.

Our Market Segmentation Practice will help you to identify markets across the nation or submarkets across the city from which you can select target markets for acquiring assets. We consult with you to understand what property characteristics make the best acquistion for your firm and then advise you on where to grow your portfolio based on national, regional and local economic factors as well as well as qualitative, anecdotal and investigative data on specific owners and properties that may or may not be on the market at any given point in time. For example, you may be in 3 markets and desire to growth to 5. Our market segmentation methodology will identify 4 to 6 markets from which to select the additional 2 that will bring you to the 5 you desire.

Then, our market selection process will use various filters to select which 2 markets most fit your strategic, operational and investment return criteria. This filtering criteria includes :

• Market trends
• Product type trends
• Inventory available
• Price movements
• Transaction volume
• Market share distribution among owners – concentration vs. fragmentation
• Local financing structure & capital flows

…among several others.

The deliverable will be specific details supporting the conditions of these markets to support growth for your specific type of investment property that support your unique competitive advantage.

To learn more about how this service is executed, please contact Larry Brewster at PPA.