What is a site feasibility study?
A site feasibility study evaluates whether a parcel can support a proposed development under its zoning, physical, infrastructure, approval, and financial constraints. It establishes a plausible program, the assumptions behind it, and the questions that could change a decision to proceed.
Real estate entitlement is the process of obtaining the planning and land-use approvals that project requires. A study assesses the path; the entitlement process secures the relevant decisions.
| Work | Main question | Result |
|---|---|---|
| Site feasibility | What can this parcel support? | Constraints, concept options, yield, and open questions |
| Entitlement | Which planning approvals and conditions apply? | Agency decisions, conditions, and approved plans |
| Building and related permits | Does the proposed construction address technical requirements? | Reviewed documents, corrections, and permits |
| Financial feasibility | Does the viable program meet the investment objectives? | Cash flow, returns, and sensitivity cases |
The local process determines the sequence. A by-right project may still need clearances and permits. Los Angeles, for example, describes by-right, ministerial or administrative, and discretionary paths separately. Los Angeles City Planning
13 weeks saved on one developer's entitlement process
See what changed in the approval pathHow a 77-unit assumption becomes a 64-unit concept
Illustrative study using hypothetical site and design assumptions.
Assume a 43,560-square-foot site with a floor area ratio, or FAR, of 2.0. In this example, the whole site is the FAR denominator and floor area is counted consistently throughout.
| Step | Calculation or assumption | Result |
|---|---|---|
| Zoning floor-area limit | 43,560 sq ft × 2.0 FAR | 87,120 sq ft |
| Footprint after assumed layout constraints | 18,000 sq ft | 18,000 sq ft per floor |
| Buildable floors assumed | 4 | 72,000 sq ft of concept floor area |
| Residential efficiency assumed | 80% | 57,600 sq ft of net unit area |
| Average net unit size assumed | 900 sq ft | Approximately 64 units |
The theoretical FAR limit suggests about 77 units at the same efficiency and average unit size. The concept supports about 64. That is a different revenue program before anyone changes the rent assumption.
These are preliminary counts. Actual density limits, floor-area definitions, height, parking, access, and unit layouts still need to be resolved. The useful finding is which constraint reduces the program and whether a different design can address it.
13 weeks saved on one developer's entitlement process
Reported result- Project
- Multifamily residential development · concept feasibility through site plan entitlement · feasibility study plus department-by-department site plan review
- What AutoSitu surfaced
- The feasibility study established the zoning basis and approval path for the site. AutoSitu then reviewed the site plan the way the jurisdiction does, by department, and surfaced the planning, public works and environmental comments the submission would have drawn, each tied to the sheet and requirement behind it, so the entitlement risks were visible before the first submission.
- What the team did
- The developer and its civil and design consultants resolved the flagged items in the site plan and application package before submitting, instead of receiving them as first-round comments and working through a revise-and-resubmit cycle.
- Result
- Site plan entitlement reached 13 weeks sooner than the developer's original schedule. The developer put the carrying cost of that delay at roughly $350K for this project.
- How it was measured
- The developer compared its original entitlement schedule, which carried the department comment-and-resubmission cycle typical for the jurisdiction, against the milestone dates achieved on this project. The $350K figure is the developer's own estimate of land, financing and holding costs over those 13 weeks; it is exposure avoided, not realized savings. Reported by the developer; specific to this project and jurisdiction.
Single-project result reported by the developer. Project and jurisdiction details are anonymized at the client's request.
Use this site feasibility checklist before the land decision
| Diligence item | Establish | Source material | Decision affected |
|---|---|---|---|
| Parcel identity | Boundaries, included parcels, and legal access | Survey, title, assessor records, recorded rights | Site assembly and developable area |
| Governing rules | Jurisdiction, zoning, overlays, and applicable approvals | Official maps, ordinances, and decisions | Permitted program and review path |
| Development envelope | Use, density, FAR, height, setbacks, coverage, and open space | Applicable provisions and dimensioned site analysis | Footprint, floors, and capacity |
| Existing entitlements | Approved scope, conditions, expiration, and flexibility | Decision documents, approved plans, amendments | Whether the proposed concept can use the approval |
| Parking and access | Parking, loading, circulation, and service requirements | Local standards and concept layout | Yield, layout, and construction cost |
| Physical conditions | Topography, flood exposure, drainage, sensitive areas, and contamination risks | Screening data, survey, and relevant professional studies | Usable land, mitigation, and earthwork |
| Utilities and offsite work | Service constraints and required improvements | Provider correspondence and agency requirements | Cost allocation and delivery timing |
| Approval pathway | Agencies, studies, decisions, hearings, and dependencies | Official guidance and project-specific agency input | Diligence period and project schedule |
| Buildable yield | Program after physical and regulatory constraints | Consistent concept, area, and parking assumptions | Revenue-producing capacity |
| Economics | Base case and specific downside cases | Cost, revenue, financing, and timing inputs | Proceed, revise, investigate, or stop |
For each unresolved item, name the next action and responsible party. “Utilities need review” is incomplete. “Obtain the provider's capacity response before relying on the phase-one opening date” gives the team a decision to pursue.
Read the conditions before relying on an existing entitlement
An approval belongs to a defined proposal. Read the decision together with the approved plans: what use and intensity were granted, what conditions apply, what expires, and what may change without another approval.
A concept that retains the same unit count can still alter access, height, building placement, or another condition of approval. A neighboring approval provides context; it does not transfer its permissions to your site.
Use the jurisdiction's actual application categories. Sacramento's entitlement resources illustrate how local planning actions are organized. City of Sacramento
Make the concept and pro forma describe the same project
Carry the concept's unit count, rentable or saleable area, parking solution, infrastructure scope, and phase dates into the financial model. Test the downside that matters: fewer units, a costlier site solution, or a later opening.
Keep return definitions consistent. If unlevered yield on cost is annual net operating income divided by total development cost, identify the costs included and use that denominator for every option. Show incentives separately from the baseline, with eligibility and approval assumptions stated.
Deciding whether to proceed? Bring the parcel and target program. We'll discuss which constraints and alternatives the feasibility review should address.
Choose feasibility software around the decision
Comparison basis: AutoSitu publishes this guide. These are summaries of linked vendor descriptions reviewed in September 2026, not a tested ranking.
| Platform | Published emphasis | Question to test |
|---|---|---|
| AutoSitu | Regulatory and site constraints, entitlement paths, concept options, and development assumptions | Can the study explain what controls the program and what must be resolved next? |
| TestFit | Real estate feasibility and rapid site-design iteration | Can you explore the layouts and program types required for this site? |
| ARGUS EstateMaster | Development feasibility, budgeting, cash-flow forecasting, and funding | Can you model the costs, returns, and capital structure of the viable program? |
These tools may serve complementary roles. Check the assumptions passed between the site study, concept, and financial model.
AutoSitu brings the land decision into one study
AutoSitu's feasibility module brings zoning, jurisdiction context, civil constraints, entitlement pathways, concept options, and deal assumptions together. The study gives the development team a basis for deciding what to pursue, what to change, and which questions deserve further spend.
When the design advances, those requirements can carry into QA/QC, completeness, and compliance review. The team can check whether the evolving project still meets the assumptions that made the deal attractive.
Real estate entitlement and feasibility FAQ
What is the difference between zoning and entitlement?+
Zoning sets land-use and development rules. Entitlement secures the planning approvals a proposal requires. Compliance with base zoning may still leave other approvals, studies, or conditions to address.
Does by-right mean no approvals are required?+
No. Permits, clearances, and administrative reviews can still apply. The parcel, project scope, and jurisdiction determine the path.
How long does real estate entitlement take?+
Timing depends on the approvals, studies, submission quality, hearing calendar, revisions, and appeal process. Build a schedule from those dependencies, with ranges where dates are uncertain.
How much does a site feasibility study cost?+
Scope drives cost. An initial parcel screen differs from a survey, geotechnical or environmental investigation, utility engineering, detailed design, or investment model. Define the decision and required deliverables before comparing fees.
Can I start with an address or parcel number?+
Yes. Identify every parcel included in the proposal. Surveys, title documents, program targets, and existing approvals make the review more specific when available.
When should I run feasibility?+
Early enough to influence the acquisition terms and design commitments. Use the initial screen to prioritize the studies and agency confirmations that could change your decision.
How is data center feasibility different?+
Usable IT capacity, power delivery, cooling, infrastructure, and phased operation become central constraints. See the data center feasibility and permitting guide.