Understanding your market competition is a critical part of due diligence. How you measure potential competing projects will impact your level of success. Accurate due diligence is an important step of the site selection process. By knowing and measuring what is in the pipeline will give you, your board or your community the background knowledge necessary to proceed.
What is the pipeline?
It is not the 1969 song by the Chantays. It is not the comic book mutant character that could teleport himself. How cool would that be?
So what is the pipeline? The pipeline for your project is simply a summary report listing the same type of projects that may compete for your market. Without getting specific or identifying clients, projects could be just about anything - hotels, restaurants, office buildings, flex space, warehouse space, bowling alleys, book stores, food stores, parts stores, farm markets, schools, residential developments. You get the idea.
Who is responsible for keeping track of the pipeline?
States and regional councils are interested in "selling" their area. Communities are interested in "selling" their town. Franchise groups are interested in "selling" their franchise. Property owners are interested in “selling” their asset. Who should you believe? Relying on one source of information to measure your pipeline of competition is not enough.
Think about it. If your goal is a successful project then who do you rely upon to measure your pipeline?
At Advance Planning Associates, LC our custom site selection program includes a due diligence component that includes measuring the pipeline that is specific to you and your market.