 We see
four basic
issues common to all projects that must be addressed before proceeding to
design, development and full marketing.
First,
and most important, is insuring the mission and the project are compatible.
Then, market identification is required to ensure the developer will send
the appropriate message to the likely purchasers.
The purchasers will want to know who controls the project and what
security they will have in their purchase.
Mission
Organizations
and businesses often have mission statements that guide ongoing efforts. A
new project can forever change the way an organization operates, including its
ability to fulfill its mission. Whenever there is a major new
direction taken or a significant expansion of an existing service a
re-examination of the mission is imperative.
As
consultants our role is to understand the mission and connect it to
possibilities that will further the mission. We do not assume that the
organization or its leadership necessarily understands the best way to
proceed. Sometimes there is an unrealistic expectation of what project is
possible, what it will do for the organization.
The
review is always necessary to avoid wasted effort. The result of
the review will likely not fundamentally change the mission, but it will offer
an opportunity to remind the organization of its core values. Further, the final
product will better serve the mission.
Governance
The
first questions purchasers will ask is “what is this, and who is
in charge?” Resolving this
fundamental structure creates the platform for proceeding, allowing all
team members, as well as future purchasers to understand the
relationships.
If the controlling
organization will be non-profit and managed by a board of directors, who
will be on the board of directors and how they are appointed will be
important issues for a significant number of residents?
It will be important to set up a structure that recognizes a
resident’s desire to know how they are governed, what contribution they
may have to the management decisions, and what recourse is available to
them if there is difficulty. Some
will have few concerns. However,
ignoring the questions can have long term negative consequences for a
project.
Tenure
What
legal relationship will the purchaser/leaseholder/occupant have?
The
proponents must answer this question before marketing begins. The
form of tenure chosen will determine limits, liabilities, and opportunities,
depending on the target market. The implications for financing and
municipal planning are significant.
Options
include freehold ownership, life lease, condominium, land
condominium, rental, co-ownership, or traditional renting.
Further, if there is a
care component, the method of payment for the care as well as a path of
transition in tenure from independent living to living with the provision
of care must be developed to ensure minimal concern for the resident and
the resident’s family. It
may be worth exploring payment options beyond traditional approaches.
Test Marketing
& Validation of Assumptions
Test marketing and
careful analysis provides for a reliable profile of those persons who are
most likely to purchase or rent. Only
then can developers move forward with confidence in framing the project
into successful community development.
It matters not what the
developer or consultants imagine “the market will want”.
It can also be misleading to take the best from other developments,
because the criterion for the “best” is in the mind of the developer,
not necessarily the eventual purchaser.
What matters is what
people will buy. The task at
hand is to determine expressed need and correlate that with market
research on the targeted demographic.
Expressed need must then
be compared to what research has identified as long-term needs and support
systems required to promote continued purchase satisfaction and
well-being. Then, the best
practices of housing can be compared and applied in the framework and
design.
The first task will be
to validate the assumptions by asking the following:
-
What
is the likely geographical market area for this development?
-
What
are the demographic characteristics of the target market and are there
significant changes taking place in attitudes in the emerging
“boomers” segment of the market?
-
What
are the values in the target market that are important in making the
decision to purchase? Put another way, what vision do prospective purchasers
have regarding the kind of community in which they would like to live?
What amenities are desirable. What
do they want to do while living in the community?
-
What
kind of home do they want, including unit types, design features, open or closed concept, and more?
-
What
form of governance and tenure is most acceptable?
-
If
the target population is based in an ethnic, religious, or narrow
community population, are there a sufficient number of persons who
shall actually be drawn to this development?
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