Architecture, Ask a Designer, Multifamily Residential

What to Expect in Your Multifamily Feasibility Study

If knowledge is power, a feasibility study is an invaluable investment in your potential multifamily project. A comprehensive feasibility study should give you the important, foundational information you need to make informed decisions about your project early. Thorough and efficient, so you can move forward with confidence and clarity.

Jill Burdeen

December 30, 2025

In the world of real estate development, information truly is power. A comprehensive feasibility study provides the foundation you need to make smart decisions, avoid expensive mistakes, and design a project that works both financially and in the marketplace.

So, what should you expect to find in your project’s feasibility study? They should cover three primary facets of your project: the physical conditions of your site, any regulatory conditions that could impact development, and the economic realities and financial viability of the project.

Feasibility studies should address your sites physical conditions.

The physical conditions of your site are addressed in a site analysis that assesses your site from many perspectives, all of which can impact development potential.

Topography

The topography of your site matters more than you might expect. That intriguing sloping lot might seem perfect for a dramatic design, but steep grades can add significant costs to your construction budget. On the flip side, a flat site that seems less interesting might save you tens of thousands in shoring and grading.

Access and Right-of-Way Conditions

Site access can make or break a project. How will residents get in and out? What about emergency vehicles? Is your site on a busy street where left turns create safety concerns, or does it connect to a quiet neighborhood road? Is there an alley? Does a power pole block the only viable access point to the parking garage? These details affect both your design options and your project’s marketability.

Site Adjacencies and Onsite Features

Site adjacencies and onsite features refer to the relationships between the project site and nearby elements. Elements such as neighboring buildings, shared boundaries, trees, fences, and utilities should all be factored into building design and layout, so analyzing this information early is important to avoid future redesign.

Existing Infrastructure

Thorough site analysis also observes existing infrastructure, to the extent possible, early on. What utilities are available and in what condition? Without a survey, this information isn’t necessarily readily available, however, visible utilities like overhead power lines, and their impact on a project can be factored in.

Upgrading electrical service or extending sewer lines can add both costs and timeline delays that are much better to know about upfront, and this information can often be determined early on with pre-submittal meetings with local jurisdictions.

Environmental Considerations

Environmental considerations like wetlands, steep slopes, or potential contamination don’t just add costs, they can make portions of your site completely off-limits for development. While a feasibility study won’t include the detailed survey and geotechnical report you’ll need later, it should flag potential issues you may need to further investigate.

Feasibility studies should address regulatory conditions.

In the same what the site itself may contain innate conditions that make development simpler or more complicated, the regulatory conditions of your local jurisdictions can impact the opportunities and challenges your site offers.

Zoning Compliance

In a thorough feasibility study, zoning compliance review goes beyond the basic zoning designation on your property. Multifamily zoning comes with very specific requirements for use, density, setbacks, building height, and design standards that vary significantly between communities.

Density and height restrictions determine how big your building can be, how many units you may put on the site, and how tall your building can be. Things like open space and Green Factor need to be considered in conjunction with density and height allowances to determine the overall development capacity of a site.

Parking and access requirements can be particularly challenging in urban areas. Some jurisdictions require 1.5 or even 2 parking spaces per unit, which can consume a surprising amount of your buildable area, can impact your unit mix and count, and may make smaller projects harder to pencil.

Setback and open space requirements determine how much of your site, and where on your site, you can build. Requirements for setbacks from property lines, common open space, and landscape buffers all reduce your developable area.

This information is critical when considering multifamily development. A knowledgeable team should be considering it during a feasibility study,

Building Codes

Building codes exist to ensure buildings are safe, structurally sounds, and energy efficient.

Do you have the proper number of stairs, what’s your construction type (because that will impact your overall height, despite what the zoning code allows), are you factoring in potential accessibility constraints?

While a comprehensive Building Code analysis doesn’t typically take place as part of a feasibility study, it’s important to have a high-level understanding of how building code requirements may impact the building design.

Local Design Standards

Most jurisdictions have local design standards to preserve community character and to guide sensible development. Some jurisdictions have architectural design standards that can significantly impact both your costs and your overall building design.

Processes like Design Review can impact a project schedule, so understanding what the process looks like and the impact to the project schedule is key early on in a project process.

Permitting and Process

You need a design team that understands your local jurisdiction’s permitting and process practices. This expertise is a key aspect of project planning. Understanding the various permits required and their processes and timelines is vital to make sure a project runs smoothly and efficiently.

Some jurisdictions have streamlined approval processes, while others require multiple public hearings and design review committees that can extend your timeline significantly. Ensuring you have a team that is familiar with entitlement and permitting processes is invaluable.

Feasibility studies should explore the development’s economic realities.

Financial viability of a project is always top-of-mind for a developer, and it’s on the top of our minds, too. After all, a project that doesn’t pencil won’t get built.

Market Demand and Target Demographic

Who will live in your units, what will they pay, and what are they expecting in terms of amenities and design? Understanding your target demographic and current market conditions helps ensure you're building something people actually want to live in and something that the current market can support.

Unit Mix

Optimizing unit mix can dramatically impact profitability. Should you focus on one-bedroom units that appeal to young professionals, or is there stronger demand for family-sized units? The right mix depends on your specific location and market conditions.

Development Timeline and Carrying Costs

Development timeline and carrying costs matter more than many first-time developers realize. How long will your project take from start to finish (and what will it cost to carry during construction)? Extended approval processes and complex construction can significantly impact your returns.

What your feasibility will not provide.

It’s as important to understand what a feasibility study does not include as it is to understand what it does include.

A feasibility study typically doesn’t include detailed geotechnical reports, comprehensive market studies, or construction budgets. It also doesn’t include survey work, wetland delineations, or detailed engineering analysis. These more specialized studies come later, after you’ve confirmed the basic viability of your project.

What a feasibility study does provide is the foundational information you need to make informed decisions about whether and how to proceed with more detailed analysis and design work. Think of a feasibility study as the crucial first step in your due diligence process, not the final word on every aspect of your project.

Whether you're considering your first small multifamily project or you’re an experienced developer looking at a complex site, every project benefits from the clarity and confidence that comes from thorough feasibility analysis.

If you’re ready to explore the development possibilities of your potential project, we’re here to help you navigate the feasibility study process. To understand what’s possible on your site, get in touch to start the conversation.