We are here to test the marketability of your property
Soft Market Testing is an interest-testing tool designed for getting feedback regarding Client's property prior to the official marketing and sales campaign, or before the start of the process of searching for (co)investors for a specific property or project.
The whole procedure is done discreetly, and potential investors are clearly and transparently communicated that it is a market test and not a real public campaign.
Soft Market Testing
The information collected during Soft Market Testing can help make the following decisions:
- How (and when) to structure a tender
- Who are the targeted investors and what is their interest in your project
- What are the preferred business models by investors and target returns on investment
- Is there a desire of investors for co-financing by domestic/foreign/international financial institutions and investors
- What is the view on the current or planned purpose of your project, architectural and urban planning competition, spatial plan, permitted construction and other urban parameters of the land in question, and what are the wishes of the investor
- Other relevant restrictions and necessary guarantees
The process of short market testing takes place in several steps:
- Preparing the list of investors (the goal is to include various types and profiles of investors, e.g. institutional investors such as pension funds, developers, foreign, domestic, etc.)
- The list is sent for approval to the Client
- Preparation of the Teaser / Prospectus sent to investors - those include basic land/project information so that investor feedback is not limited by detailed information, in order for them to express their unbiased views
- Conducting a full interview with investors who express interest in the project – this is a key step in the process
- Analysis of results and recommendations
The interview is a key step in this process, so it is of utmost importance that we conduct it in accordance with the highest quality standards.
It is carried out using a questionnaire that is adapted to the project in question as well as the wishes of the current owner, which covers the most important questions/elements, without detailed information.
The questionnaire and investor list are prepared by Colliers and presented to the Client. After agreeing on the questionnaire and list, investors are sent a Confidentiality Agreement before the location is disclosed. The whole process takes several weeks, depending on the availability of investors.
Colliers' experts perform their work responsibly, conscientiously and professionally, and in accordance with the highest standards.
Our role is to help the Client as independent and experienced consultants, and to conduct a process of Soft Market Testing in an impartial and professional way. Our services are always high quality, professional and adapted to the market in which we operate. We will work with you to mutually define the objectives of market testing and to ensure that the maximum potential of your project is achieved.
Find an expert
Head of Capital Markets
• Areas of expertise: commercial real estate advisory, valuation, investment brokerage and market research
• Property types: Office, Logistics, Hotels, Retail, Residential
• Committed to service excellence, constant learning and professional & personal development