What is a SWOT Analysis?
Swot analysis involves the collection and portrayal of information about internal and external factors which have, or may have, an impact on business.
SWOT is a framework that allows managers to synthesize insights obtained from an internal analysis of the company’s strengths and weaknesses with those from an analysis of external opportunities and threats.
Understanding the Tool
SWOT is a tool used for situation (business or personal) analysis! SWOT is an acronym which stands for:
Strengths: factors that give an edge for the company over its competitors.
Weaknesses: factors that can be harmful if used against the firm by its competitors.
Opportunities: favorable situations which can bring a competitive advantage.
Threats: unfavorable situations which can negatively affect the business.
Helpful to achieving the objective
Harmful to achieving the objective
Using the SWOT Analysis in Real Estate
Strengths: characteristics of the asset that give it an advantage over others.
Examples: Location, design, modern rental property, effective operational management, Energy efficient properties, Selecting quality tenants to maintain occupancy
Weaknesses: characteristics that place the asset at a disadvantage relative to others.
Examples: Age of structure, lobbies, mechanical equipment and lack of infrastructure/vacancies to support current leasing efforts
Opportunities: elements that the project could exploit to its advantage.
Examples: Demand response strategies to reduce energy, reposition lobby and create amenities.
Threats: elements in the environment that could cause trouble for the business or project.
Examples: Development of competitive newer buildings, market shifting for tenants and environmental or governmental issues.