Feasibility Study | Practical Law

Feasibility Study | Practical Law

Feasibility Study

Feasibility Study

Practical Law Glossary Item w-042-3972 (Approx. 3 pages)

Glossary

Feasibility Study

In the context of a real estate development project, an analysis of various factors to determine whether the project is viable. A feasibility study is used to identify:
  • The likelihood of a project's success, based on the projected return on investment.
  • Potential risks of the project.
Factors typically investigated in a feasibility study include:
  • Development site characteristics, such as:
    • location;
    • physical properties; and
    • infrastructure.
  • Market data.
  • Community reaction and impact.
  • Competitive analysis.
  • Financial projections.
  • Availability of financing.
  • Zoning, environmental, and other government regulations.
  • Risk analysis.
For a definition of feasibility study in the context of environmental remediation, see Remedial Investigation/Feasibility Study (RI/FS).
For guidance on commercial real estate development, see Commercial Real Estate Development Project Toolkit.