Economic Development Scenario

In this example two cities are being compared by an economic development professional.

Have you struggled to compare the "other factors" such as Cost of Living, Workman's Comp Taxes, etc. and create an objective analysis that looks at a tenant's total occupancy cost, and then compare that to the competition?

LseMod is a decision analysis tool! A number of metrics can be used to reach a decision. They include:

• First year cost,

• Net present value,

• Total cost,

The classic approach is to make an economic decision based on the Net Present Value of the Occupancy Cost. LseMod makes it easy to do this type of analysis as well as the other approaches.

Sometimes the decision may be based on the Total Cost or the First Year Cost which is typically highest since it includes one-time costs. With LseMod, if you know the approach that decision makers prefer, you can easily present that type of analysis.

LseMod quantifies the costs for each of the different parameters outlined above on the Management Summary (Mgmt Summary sheet).

Many times a community can put together a total package that, if quantitied, can turn the decision their way. Again, LseMod shines. Taking the analysis to this level, LseMod compares the total occupancy cost. More than "just comparing rent", occupancy cost includes expenses like moving, construction, voice, data, consultants, security systems, etc. and credits such as real estate tax credits and job training credits. You can even include savings from labor & benefits, lower utility costs and/or workman's comp costs.

Of course, you can just do the minimum since the ONLY required fields are rent, square footage, and lease term.