How do you measure the impact of zoning on development?

1 Zoning Analysis

A zoning analysis is a process of reviewing the zoning code and maps that apply to a specific site or area, and identifying the opportunities and constraints for development. A zoning analysis typically involves checking the zoning district, overlay zones, special districts, historic districts, environmental zones, and any other relevant regulations that affect the land use, density, height, bulk, design, and compatibility of potential development projects. A zoning analysis can help you determine the maximum allowable development potential, the minimum required standards, and the possible incentives or variances that can modify the zoning rules.

2 Financial Analysis

A financial analysis is a process of evaluating the costs and revenues of different development scenarios, and comparing their profitability and feasibility. A financial analysis typically involves estimating the development costs, operating costs, financing costs, and income streams of potential projects, and calculating their net present value, internal rate of return, cash flow, and other financial indicators. A financial analysis can help you determine the optimal development program, the optimal capital structure, and the optimal exit strategy that maximize the return on investment and minimize the risk.

3 Market Analysis

A market analysis is a process of assessing the supply and demand of different land uses and products in a given location, and identifying the gaps and opportunities for development. A market analysis typically involves analyzing the demographic, economic, social, and environmental trends and factors that affect the demand for housing, office, retail, industrial, or other types of real estate, and estimating the current and projected absorption, vacancy, rents, prices, and competition of existing and planned supply. A market analysis can help you determine the optimal land use mix, the optimal product type, and the optimal pricing and positioning that match the market needs and preferences.

4 Scenario Analysis

A scenario analysis is a process of testing the sensitivity and robustness of different development outcomes under various assumptions and uncertainties. A scenario analysis typically involves creating and comparing multiple scenarios that reflect different combinations of zoning regulations, financial parameters, market conditions, and external factors that can affect the development performance and risk. A scenario analysis can help you determine the best-case, worst-case, and most-likely scenarios, and the trade-offs and implications of each scenario for the development goals and objectives.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?