We were pleased to submit a multi-family study to the city of Nashua, NH that will assist in the city’s future development, and provide the market and demographic data that provides the basis for recommendations. The objective of the research and analysis was to determine potential demand for further development of market rate multifamily housing, determine if Nashua’s city-owned sites have potential for development, and provide a report for lenders to utilize in assessment of development of Multi-Family housing in the city. Questions to be posed were:
- what product mix is likely to have the most success
- what amenities are needed
- what fit and finish is required
- what kind of community needs to be fostered to make a project a success.
An important point to remember too is that there are times when we do not see the historical evidence to support a market, but that does not always mean the market is not there. In order to begin the process, there were numerous data points that were explored. This data included demographics, with a full profile analysis of residents living in the area.
The review included a segmentation analysis, research on all of the other existing multi-family housing projects in Nashua, and a full analysis of the third party data. We also completed first person research to provide real world data to determine what has happened, what are competitive projects, and where the market could potentially trend. There are many highlights among the demographics that point toward successful housing projects in the city, as there are also many market indicators that identify successful projects as well.
Our conclusion is that the Nashua marketplace offers significant opportunity for the introduction of both modest housing units, and luxury “market rate” housing units that will specifically meet the needs of targeted populations such as Young Professionals, Seniors Housing, Empty‐Nest down‐sizing homeowners, snowbirds or potentially even outside the box options like co‐housing.
Based on security features and “Lifestyle” amenities these tenants and buyers will be willing to pay a premium to live in a Class‐A style building. While there are significant signs for the commencement of revitalization in the targeted area, Nashua is undergoing the first phases of a renaissance in new construction and attracting a dynamic population to the downtown core. Current local area amenities may somewhat limit the pool of interested tenants, and the achievable lease pricing for any development, but the city is making headway in starting to provide an amenity rich downtown. As more amenities are added to the mix in this location, more housing projects will be attracted to and expand downtown. A critical factor in the profitability and success of any new project will be not “overbuilding” the community, but instead hitting a target supply.
For more information, visit Government Services at KW Commercial at kwgovernment.com.