MSN Real Estate

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Real Estate Management Business Plan

Market Analysis Summary

MSN Real Estate's main consumer base will be primarily students at the University of Oregon who will benefit from the apartment's unparalleled level of quality, location, and technological amenities. We will also be marketing to local area professionals and recent graduates, along with faculty and staff at the University. These customers will be looking for safe, high-quality environments that can foster the type of atmosphere needed for scholastic and professional success.

4.1 Market Segmentation

  1. MSN's largest market segment in the Eugene area will be students of the local universities. These students will be the most likely to desire the technological amenities that our company offers. We expect this to be the largest growing segment with a growth rate of about 7%.
  2. Local professionals are another large segment. They will be attracted to the units because of the same technological needs, but will also be attracted to the comfortable, well maintained living environment. MSN offers units that provide a quality "hub" between college graduation and home ownership. We expect this segment to grow at a rate of about 4% with a more frequent turn over.
  3. Local university faculty and staff represent the third and smallest identifiable segment, but contain the second highest growth rate. Proximity and quality will entice this segment which we expect to grow at a rate of 5%.
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Students 7% 18,000 19,260 20,608 22,051 23,595 7.00%
Professionals 4% 12,000 12,480 12,979 13,498 14,038 4.00%
Faculty/Staff 5% 6,000 6,300 6,615 6,946 7,293 5.00%
Other 3% 4,000 4,120 4,244 4,371 4,502 3.00%
Total 5.43% 40,000 42,160 44,446 46,866 49,428 5.43%

4.2 Target Market Segment Strategy

We believe that our unparalleled level of quality and technological amenities put MSN into a niche of its own. This will be the focal point of all our marketing and advertising efforts. These segments are also easily reached through local newspapers and publications, as well frequent open house displays.

It is essential for MSN patrons to understand that their needs are our priority.

This industry is constantly evolving and leaving many inflexible companies stagnant. One of the major trends is the need to adapt to technological advancements as well as maintaining the overall appearance and condition of the complexes.

Another important trend is adapting to higher density housing in smaller areas due to urban growth boundaries, etc. MSN is dedicated to following these trends while maintaining the level of comfortable livability that sets us apart from our competitors.

4.2.2 Market Growth

The market for high quality, reasonably priced apartment units has been growing at a rate of 6.7% since 1996. Oregon's rental rates have remained even, averaging $697, or $.79 per square foot, during the fourth quarter of 1997. The Oregon market is experiencing rapid employment growth that is fueling demand for apartments, but not many new units are emerging. Not only is MSN pioneering this particular niche of affordable quality living, but it is capitalizing on the strength of the current economic growth in Oregon.

4.2.3 Market Needs

Each of our targets need the quality, convenience, service, safety, comfort and technological amenities that can only be found at our living complexes.

  1. The student segment needs a quiet safe atmosphere that fosters a quality learning environment. They also need the convenience of location and on-site amenities.
  2. The professional segment needs a living environment that separates them from the noisy, dirty inconvenience of average apartment living. Most professionals are on their way to home ownership or movement to a larger city, so they need housing that will let them feel like they are getting the quality that they need.
  3. The faculty/staff segment also has similar needs. They need to feel separation from the noise and unkept conditions of most near-campus housing. Along with the students, they also need a place to feel safe and one that fosters convenience.

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