Leveraging Unit Density: Identifying Acquisition Opportunities

Recognizing the Value of Unit Density in Acquisition Opportunities

Unit density is a valuable metric when exploring acquisition opportunities, particularly when a parcel's existing number of units equals or exceeds the allowable limit. The parcel has already reached or exceeded its maximum Unit Density in such cases.

Targeting Properties with Maximized Density for Stable Cash Flow

Investors seeking stable cash flow can focus on properties that have utilized their density potential. Depending on the investment strategy, Core or Value Add, the age of a building should also be considered. Older buildings offer opportunities for improvements and higher rents.

Assessing Market Constraints and Opportunities through Unit Density Analysis

Investors can gain insights into increasing land constraints. If a city exhibits marginal differences between existing and potential units, it suggests limited development opportunities. Property values will likely continue rising due to the scarcity of new construction options. 

Author Olivia Ramos
Founder and CEO of Deepblocks, holds master's degrees in Architecture from Columbia University and Real Estate Development from the University of Miami. Her achievements before Deepblocks include designing Big Data navigation software for the Department of Defense's DARPA Innovation House and graduating from Singularity University's Global Solutions and Accelerator programs.