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Feasibility Analysis

Know Your Project'sProfitabilityin Minutes

Archiwise automates financial pro formas, zoning analysis, and market demand assessment for any site, revealing profitability and risks in minutes, not weeks.

  • Model different unit mixes and build strategies
  • Compare ROI, yield, and downside across scenarios
  • Choose the path that maximizes value before hiring consultants

Why Traditional Feasibility Studies Leave Money on the Table

Most feasibility analysis tests one scenario: "Can we build what we want?" But the better question is: "What should we build to maximize return?" Traditional studies are expensive, slow, and test only the developer's initial concept-missing better alternatives entirely.

Architect Preliminary Design

The Process:

  • Describe your vision to architect
  • Wait 2-3 weeks for schematic design
  • Get preliminary cost estimate
  • Discover it doesn't pencil (or barely works)
  • Revise and iterate ($$$)
Timeline:3-6 weeks
Cost:$15K-$35K
Problem: Testing one idea, not optimizing multiple strategies

Consultant Feasibility Study

The Process:

  • Hire feasibility consultant
  • Provide program requirements
  • Receive static report with financial model
  • No scenario comparison
  • Pay again to test alternatives
Timeline:3-4 weeks
Cost:$10K-$25K
Problem: Expensive to iterate, limited scenario testing

In-House Spreadsheet

The Process:

  • Build pro forma in Excel
  • Estimate costs from past projects
  • Guess at buildable SF from zoning
  • Hope your assumptions are close
  • Discover errors after commitment
Timeline:Days to weeks
Cost:Staff time
Problem: No architectural constraints, incomplete data, error-prone

The Hidden Costs: What Gets Missed

Better building configuration that adds 3 units

+$210K

Parking trade-off that saves cost but only reduces units by 1

+$120K

Mixed-use option that qualifies for better financing

+$140K

Phasing strategy that accelerates cash flow

+$90K

Different unit mix better matched to demand

+$150/unit/mo

Total Opportunity Cost: $600K-$1M+ in unrealized value per project

From Parcel to Pro Forma to Optimized Strategy in Minutes

Six steps that transform feasibility from a binary yes/no into strategic optimization.

1

Automated Buildable Envelope

ArchiWise automatically generates the maximum buildable envelope based on all zoning setbacks, height limits, FAR, lot coverage, parking requirements, and code-compliant dimensional constraints.

The Intelligence: You see exactly how much buildable volume exists before spending on architectural design.

2

Unit Mix Optimization

Test multiple unit mix scenarios: studio-heavy (maximize density), 1BR/2BR balanced, 2BR/3BR family-focused, mixed-income (density bonus compliance), or micro-units. For each mix, calculate total unit count, rentable SF efficiency, parking requirements, construction cost, and market rent.

The Intelligence: Find the mix that maximizes NOI while fitting the envelope and meeting market demand.

3

Development Strategy Comparison

Compare fundamental strategy options: Residential-only vs. Mixed-use, For-rent vs. For-sale (condos), Market-rate vs. Affordable density bonus, Surface vs. structured parking, Single vs. phased development.

The Intelligence: See which fundamental strategy delivers best risk-adjusted return.

4

Construction Cost Modeling

Estimate construction costs based on building type, construction method, unit size and count, parking type (surface, podium, underground), location-specific factors, finish level assumptions, and soft costs.

The Intelligence: Real cost estimates, not guesses. Understand budget before committing to design.

5

Financial Modeling & Sensitivity

Generate complete pro forma for each scenario: development budget, revenue projections, returns analysis (ROI, IRR, Cash-on-Cash, yield on cost), and sensitivity testing (what if rents are 5% lower? Costs 10% higher?).

The Intelligence: Know your returns and downside risk before capital commitment.

6

Scenario Ranking & Recommendation

ArchiWise ranks all scenarios by highest IRR, best risk-adjusted return, fastest time to stabilization, lowest capital requirement, and most by-right (least approval risk).

The Intelligence: See which strategy is objectively best-not just which one you thought of first.

Optimal Strategy Identified

How Developers Use Feasibility Check to Maximize Project Returns

Scenario:

R-3 lot, can build 22-26 units depending on configuration. Developer assumes 2BR family units are optimal.

IRR Comparison

Scenario Comparison

StrategyUnitsCostIRR
A: 24×2BR24$5.1M14.2%
B: 28×1BR28$4.8M16.8%
C: Mixed26$4.95M15.1%
D: 22×3BR22$5.3M13.4%
E: Density Bonus26$4.9M15.9%

Winner:

Scenario B (28× 1BR units) delivers 16.8% IRR - 2.6% higher than original concept

Outcome:

"We would have built 2BR units because that's what we always do. Feasibility Check showed 1BR units delivered 2.6% higher IRR. Market demand supported it. That optimization added $340K in project value."

Feasibility Analysis Proves Your Strategy Pencils

See how Feasibility Analysis fits into the complete framework for confident development decisions.

Complete Example: 6 Scenarios Tested

R-4 zoning, 15,000 SF lot | Can build 32-38 units | By-right path available

IRR by Scenario

Winner: Scenario 3

38 units using affordable housing density bonus
Mixed unit sizes (24× 1BR, 14× 2BR)
8 affordable units (20% of total)
Podium parking (28 spaces)
18.1% IRR
By-right approval

Decision: Commit capital to Scenario 3 with full confidence it's the optimal strategy.

Developer Success Stories

Found a $340K better strategy in 30 minutes

"We were locked into building 2BR units. Feasibility Check showed 1BR units delivered 2.6% higher IRR. Ran the numbers, confirmed market demand, redesigned. That 30-minute analysis added $340K in project value. Now we test every assumption before committing to design."

SC
Sarah Chen
Principal
Chen Development Group
Multifamily developer, Bay Area
Parking trade-off saved $1.6M

"We assumed we needed full parking compliance. Feasibility Check compared 4 parking strategies. Dropping from 32 spaces to 20 saved $1.6M in structure costs. We lost 2 units but gained 190 basis points of IRR. Game changer."

MR
Marcus Rodriguez
VP Development
Pacific Coast Builders
35 projects/year
Mixed-use analysis unlocked better financing

"Residential-only felt simpler. Feasibility Check showed mixed-use delivered 1.7% higher IRR and qualified for SBA 504 financing at 50bps lower rate. That interest savings alone was worth $180K NPV. We went mixed-use. Best decision of the project."

JP
Jennifer Park
Acquisitions
Metro Developers Group
Mixed-use specialist

Frequently Asked Questions

Costs are based on location-specific RSMeans data, recent project costs, and building type benchmarks. Accuracy is typically ±10-15% for preliminary analysis. Always get contractor bids for final budgets, but our estimates are reliable for go/no-go decisions.

Stop Guessing Which Strategy Works Best. Test Them All.

Join developers who optimize returns by testing multiple scenarios before committing to design-finding the strategy that maximizes value, not just the first idea that works.