Feasibility Study for a Commercial Center in South Auckland

FEASIBILITY STUDY
Name of Student
Institution Affiliation
FEASIBILITY STUDY 1

Task 1
INTRODUCTION
Background
There is a rapid growth of urban population in major cities of New Zealand including
Auckland. Urban housing and shopping require special consideration and attention due to the
greater contribution to the gross domestic product compared to the rural counterparts. Therefore,
more investment should be rolled out in the cities due to the high potential.
This feasibility study is about the technical and the financial viability of a commercial
center to be erected in South Auckland area to serve the needs of the growing middleclass
population.
Objectives
● To examine the technical and the financial scope of the proposed project
● To carry out needs analysis of the project
● To examine components of the proposed project
● To examine the significance of the proposed commercial complex in South Auckland
● To outline the economic, environmental and social impact on the community
● To provide a funding model for the proposed project
Rationale of the study
This project needs a proper study as well as a detailed financial analysis and technical
analysis to establish such a big commercial complex that will serve the big population.
FEASIBILITY STUDY 2

Bigger commercial centres and business hubs need to set foot in big cities to meet the
need of the dense population (Stirk-Wang & Thorsnes 2017). This commercial hub will be
developed in a 6200 square metre land.
Scope of the study
This study is conducted to analyse the issues and facts around the technicalities such as
environmental, social, and political impacts as well as the economic implications.
Limitations of the project
This study is only limited to the issues regarding the development of a commercial centre.
Design construction interface problems exist in large construction projects (Sha'ar et al, 2017). A
comparative comprehensive analysis on the other commercial complexes within Auckland is also
prepared to give a deeper insight on commercial centres in Auckland.
Research methodology
The following illustrates the methodology adopted for this feasibility study (AlSehaimi et
al, 2014).
● Desk study and secondary data collection from publications, journals and reports on
matters commercial centre development.
● Conducting a case study on urban commercial centres to do a comprehensive
comparison.
● Financial implications and analysis of the commercial complexes.
THE PROPOSED PROJECT
FEASIBILITY STUDY 3

background information
There is an increase in demand for bigger commercial hubs in Auckland due to the ever-
growing population as well as increase in tourist population. The rising middle class corresponds
to an increase in the peoples purchasing power. With advancement in technology, new products
that are fast moving like electronics are availed in the market by manufacturers day-in day-out.
These products already have potential buyers and what is needed is more space for their display.
Furthermore, with increasing population the volume of food supply increases too. These
foodstuff will also require space for their display.
This project has been designed to take care of both the locals, nationals as well as
foreigners who mainly come in as tourists. The concept of shopping has changed over the years
from shopping in individual shops to shopping in commercial centres, where everything is
provided under one roof, thus saving customers time and money. Similarly, due to the increased
purchasing power, most people have cars but space is limited therefore buildings which can
accommodate both people and there cars without causing overcrowding are greatly needed. This
proposed project will have basement parking lots able to accommodate over 260 cars.
Need of commercial centres and the project
The proposed building will sit on a 6200 square metre of land in south Auckland. The
design of this project is in total compliance with the New Zealand construction standards and
regulations as well as the international modern market regulations and standards.
A report by radio New Zealand in third September 2014 recorded Auckland City Mission
chief executive Diane Robertson saying deprivation in the Auckland was largely overlooked. She
said “nobody ever imagines that the city has deprivation. But if you have a look at the
FEASIBILITY STUDY 4