2. Delineating the market A. Market Area Delineation Concepts Identification of Demand Sources and Their Location: The primary demand for garden-style apartments in Bryan-College Station stems from young professionals, graduate students, and families seeking affordable housing close to Texas A&M University and other major employers. Some of Bryan's nicest neighborhoods are Briarcrest, Upper Burton Creek, and East Side. Bryan-College Station real estate is rising with population. Master-planned communities have increased Bryan-College Station's luxury home inventory, although housing costs are 24% lower than the national average and 8% lower than Texas's. Bryan real estate is 4% cheaper than Houston. Home prices in Austin can double. College Station has a lower cost of living than the national average, but housing is 6% more expensive (Bryan, TX 2023, n.d.). Area Over Which Equally Desirable Substitute Properties Tend to Compete with the Subject: The competitive market area for this project encompasses a 5-mile radius around Texas A&M University, encompassing neighborhoods like Southside Bryan, College Station North, and South College Station. The Brazos Transit District has hundreds of fast and conventional routes throughout Bryan and College Station. Mass transit one-way rides cost roughly $1, free with student IDs, and ticket books and monthly passes are discounted. (Bryan, TX 2023, n.d.). For longer excursions, Amtrak goes there. Residents have two air travel options. Coulter Field, Bryan's airport, is off State Hwy 21 in east Bryan. American Airlines and United Airlines fly to Easterwood Airport (CLL), owned by Texas A&M University (TAMU). B. Consumer Profile Concepts Identification of Characteristics of Most Portable Users: The most portable users in this market are young professionals and graduate students who are mobile and prioritize amenities and proximity to their workplaces and educational institutions. • Segmentation of Consumer Groups: The target consumer groups for this project include: • Young Professionals: Single or married individuals with an average income of $50,000 to $75,000 seeking modern, well-equipped apartments close to their jobs. • Graduate Students: Single or married individuals with an average income of $30,000 to $50,000, prioritizing affordability, proximity to campus, and access to student amenities. • Families: Young families with an average income of $60,000 to $90,000 seek safe, family-friendly communities with amenities like playgrounds and pet-friendly policies. Supply Analysis The supply of garden-style apartments in the competitive market area is relatively limited, with older complexes and limited availability of newly constructed units. It creates an opportunity for a new development that offers modern amenities, a luxury feel, and affordable pricing. Competitive Analysis The major competitors in the garden-style apartment market include: • University Heights Apartments: A complex offering basic amenities and outdated units at an average rent of $850 per month. • Campus Crossings: A newer complex with modern amenities and a monthly higher average rent of $1,200. • The Retreat: A luxury complex offering resort-style amenities and an average rent of $1,500 per month. Development Plan The proposed garden-style apartment complex will consist of: • Units: A mix of studio, one-bedroom, and two-bedroom apartments to cater to diverse residents. • Amenities: Modern amenities, including a fitness center, swimming pool, outdoor lounge area, and pet-friendly amenities. • Design: A sleek and modern design that incorporates luxury elements while maintaining affordability. • Location: A convenient location close to Texas A&M University, shopping centers, and major transportation routes. Pricing Strategy The proposed pricing strategy will target the mid-market segment, offering affordable luxury with rents starting at $950 per month for studio apartments, $1,100 per month for one-bedroom apartments, and $1,300 per month for two-bedroom apartments. The metroplex has many home alternatives, including golf course homes at Pebble Creek and luxury properties in Miramont from $600,000 to over $1 million. New homes in Mitchell-Lawren southwest of Blinn College start at $200,000. Property owners might expect substantial gains when they sell due to rising demand. In general, the proposed garden-style apartment complex presents a compelling investment opportunity for RevEquity Group due to the strong demand for affordable luxury housing in Bryan-College Station, Texas. The development plan and pricing strategy are designed to attract and retain a diverse range of residents, ensuring long-term success for the project. Subject Marketability Analysis (Determine Market Capture) A. Inferred Capture Methods Comparable Property Data: Rents for comparable properties in the area range from $850 to $1,500 per month. The proposed project's rents are within this range, making it competitive. Bryan-College Station offers cheap small-town living. Over 50% of metroplex residents rent, choosing from country homes, townhomes, historic downtown lofts, and trendy apartments. The average apartment is 890 square feet and rents around $1,000, compared to $1,700 nationally. Rents are 50% lower than in Austin and 25% lower than in Dallas. Large apartment complexes offer one-bedroom homes for singles or couples for $875 to $975 per month. These complexes frequently have parking, common areas, and exercise centers. Young professionals and people seeking a simple, affordable living alternative will like these units. This price range offers flexibility and possibilities for those with varying financial demands. For a more luxurious living experience, vintage loft-style apartments are appealing. These apartments combine modern amenities with ancient architecture and cost over $1,000 monthly for a two-bedroom property. Residents may expect exposed brick, high ceilings, and huge windows for a stylish, classy atmosphere. Due to their greater price, these apartments appeal to couples and individuals who value quality, charm, and a central position. Living in historic locations can connect you to the area's history while offering modern advantages. The data shows that College Station-Bryan, Texas, has a 10.3% vacancy rate compared to 4.2% overall. The absorption rate in Q2 2021 was 139 units, compared to 226,871 nationally. College Station-Bryan's effective rent per unit rises 3.3% year-over-year, compared to 6.4% overall. College Station-Bryan has a 10.8% rent-to-income ratio, compared to 10.9% overall(NAR Commercial Real Estate Metro Market Report, 2022). High vacancy rates, low absorption rates, moderate rent increases, and a low rent-to-income ratio indicate that the College Station-Bryan rental market is less competitive than the national market. Texas A&M University may explain College Station-Bryan's higher vacancy and lower absorption rates. University student housing may compete with private rental accommodation, especially in the summer when students are not in class. The university's growth may also increase rental housing. College Station-Bryan's low cost of living may explain its slower rent rise and lower rent-to-income ratio. The city's typical home value is $266,000, below the national median of $428,700. The area's typical household income is $63,000, higher than the national median of $60,293. The data suggests that College Station-Bryan's rental market is cheaper and less competitive than the national market. The data depicts the College Station-Bryan, Texas, economy increasing. In Q2 2023, non-farm employment rose 3.8%, and the unemployment rate is lower than the national average. Construction and manufacturing earnings are rising at double-digit rates, and average weekly wages are rising faster than nationwide. The College Station-Bryan economy relies primarily on education and healthcare, which are less cyclical than other industries; hence, GDP growth is slower nationwide(NAR Commercial Real Estate Metro Market Report, 2022). College StationBryan's median household income is higher than the national average, indicating affluence. This indicates a strong College Station-Bryan economy. The economy is booming, unemployment is low, salaries are rising, and median family income is high. These indicate a strong economy. Secondary data sources indicate that demand for garden-style apartments in Bryan-College Station is expected to grow in the next five years. This supports the project's viability. B. Fundamental Capture Methods Market Share: The project's target of securing 10% of Bryan-College Station's gardenstyle apartment market is feasible and strategic. This targeted share is explained by a detailed understanding of local market conditions, including demand, competition, and the project's unique value proposition. The balanced approach of capturing a small but considerable market share allows for sustained expansion while addressing the demands and preferences of the specified consumer categories. Competitive pricing and desired features position the project to attract a large market share, giving a compelling housing solution to Bryan College Station's diversified demographics. Adjust with Quantitative Ratings: The project's high rating on quantifiable characteristics like location, facilities, and pricing indicates tenant desirability. The project's location near Texas A&M University and modern amenities like a fitness center, pool, and petfriendly facilities make it more appealing. The project's affordable pricing, with studio apartments starting at $950 per month, further enhances its appeal across income ranges(Bryan/College Station Cost of Living Guide, 2023). This high grade shows that the project has strategically positioned itself to fulfill the expectations and priorities of its target consumer groups, enhancing its chances of success in a competitive market. Topic Historical Capture Rate: The developer's prior garden-style apartment complexes had an average occupancy rate of 95%, bolstering confidence in the projected project's viability. This historical capture rate shows the developer's ability to attract renters and market demand for housing options. The consistently high occupancy rates suggest that inhabitants like the building, which may be due to superior construction, property management, and tenant needs (Bryan/College Station Cost of Living Guide, 2023). With such a high historical capture rate, the project can repeat and build on Bryan-College Station's performance, ensuring tenant satisfaction and financial viability. Reconciliation of Capture Indications The analysis of both inferred, and fundamental capture methods suggests that the project has a strong potential to capture market share. The project's competitive pricing, modern amenities, and convenient location are all likely to attract tenants. Additionally, the developer's proven track record of success suggests that the project is well-positioned for execution. Method Analysis Comparable Property Data Comparable properties rent for $850–$1,500 per month. This range of rentals makes the proposed project competitive. Secondary Data Surveys and Forecasts Secondary data sources predict a rise in Bryan-College Station garden-style apartment demand in the next five years. It improves project viability. Subject Historical Performance The developer has successfully built and managed garden-style housing complexes. This signals a promising project. Share of Market The proposal seeks 10% of Bryan-College Station's garden-style apartment market. It is achievable given the project's low cost and facilities. Adjust by Quantifiable Rating Techniques The project scores well on location, amenities, and price. Therefore, the project will attract tenants. Subject Historical Capture Rate Previous garden-style apartment complexes by the developer have 95% occupancy. It means the project will attract and maintain tenants. References Bryan, TX 2023 Housing Market | Realtor.com®. (n.d.). Bryan, TX 2023 Housing Market | realtor.com®. https://www.realtor.com/realestateandhomessearch/Bryan_TX/overview?layer=transit&layer_options=transit Bryan/College Station Cost of Living Guide: 7 Essentials For Your 2023 Budget. (2023, January 20). TexasRealEstateSource.com. https://www.texasrealestatesource.com/blog/bryancollege-station-cost-of-living-guide/ NAR Commercial Real Estate Metro Market Report. (2022, December). NATIONAL ASSOVIATION OF REALTORS. Retrieved November 27, 2023, from https://carnm.realtor/nar-commercial-real-estate-metro-market-report-2023-q1albuquerque-nm/ 
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