A FEASIBILITY STUDY ON

COMMERCIAL PROPERTY

IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE FINALS

IN REAL ESTATE CONSULTING AND

SPECIFIC ENGAGEMENTS

PRESENTED TO:

ENGR. BERNARD POTICANO REB, REA, REC

PRESENTED BY:

ARIZO, JULIUS C.
ADENA, SHANN
BAUTISTA, WINDEE LAINE S.
LERIOS, FRANCIS GLEN
ZABALA, PRIMITIVO JONAS T. III
A. Name of Project

- BAZA Seaside Center

- BAZA is an abbreviation from the surnames of the four major shareholders of the

commercial property (Bautista, Arizo, Zabala, Adena).

B. Location

- Brgy. San Roque, Tanauan, Leyte

- The location is strategically located along the national highway where it is easily

accessible to motorists and shoppers.

- It is the only mall that is located in the municipality of Tanauan.

- It is located at the center of commerce of the municipality of Tanauan.

- The main location of the project is located 450 meters away from nearby Remittance

Centers and 800 meters away from the Landbank.

C. Description definition of the project

- The BAZA seaside center will be going to be the first and only mall in the heart of

Tanauan, Leyte. The store is designed as big enough to cater all the needs of the locality. This

mall is going to be the one-stop-shop where shoppers can buy all their needs. It is developed to

provide higher economic income for the municipality of Tanauan and provide local residents

with job opportunities and/or business opportunities.

E. Feasibility Criteria

1. Profitability

- In 2005, the municipality registered a total income of PhP 47.6 million and went up to

PhP 56.4 million in 2007, representing an average annual increase of over 9%, mostly coming

from considerable increases in local taxes, permits & licenses and the Internal Revenue

Allotment. There is a great chance of profitability for putting up BAZA Seaside Center in

Tanauan, Leyte as this store will be the first and only mall that is located in the Municipality of

Tanauan. Since BAZA Seaside Center is the only mall in the area, there would have been no

major threats as to profitability for the business as there will be no competition. Aside from that,

the business will cater to a large scope of customers from all kinds of markets as there had been

no choice of any store that the customer could choose to. The customers in the locality would be

willing to spend all their needs in the store nearby to them rather than travelling to the city to

purchase their needs in order to save their time and money from commuting. The market of the

Municipality of Tanauan is large enough compared to the nearby Municipality and that, there is

no stiff competition in the area which means that the business has the capability of generating

more profits from its operations.

2. Socio-economic

- The main source of income and living of the people of the Municipality of Tanauan

depends largely on agriculture such as fishing and farming. This kind of living is more

particularly seasonal, which means that if not seasoned for fishing and farming, the locality

would have no income. This chapter includes the socio-economic benefits of the proposed
project. The proposed project which is the BAZA Seaside Center aims to help the localities of

Tanauan especially those with families whose source of living depends largely on fishing and

farming by providing them with jobs that would give them regular salary and that would suffice

their daily needs. This business also aims to provide a great contribution to the Local

Government Unit of Tanauan in the form of taxes. The tax payment that will be derived from the

business would help the localities as well as the economy in its future projects in the

Municipality especially for the people that will benefit from it. This would help people improve

their standard of living. Nowadays, it is important that entrepreneurs should realize the worth

innovating and starting a business that would largely contribute to the socio-economic of the

country.

3. Environment

- Tanauan, Leyte is a rural community away from cities. The proposed site is suitable for

all kinds of shoppers as the site is located along the National Highway and that, the municipality

is not yet congested with traffic compared to other nearby Municipality and City. Customers

would rather choose an establishment that is away from pollution, has a wide parking space and

away from the traffic. The environment in Tanauan, Leyte is the perfect fit for customers who

want a fresh and not-so-noisy environment. The economy of the Municipality of Tanauan is just

yet starting to boom, which means that the environment is not yet congested with so much

pollution from the industry.

F. Highlights of the project

1. History
-The land proposed to be developed was an industrial property formerly called New Leyte Edible

Oil Manufacturing Corporation. It is a company that operates in the food manufacturing sector.

The plant processes copras and turns it into cooking oil. The plant was destroyed during the

supertyphoon Yolanda which devastated the entire region 8 especially in the eastern part of the

region that faces the pacific ocean where the storm surge hit. The company failed to recover the

plant and decided to stop operations. They salvage the materials that can still be useful and now

are trying to sell the land.

 Market Study

A. Market Surveys / Results

-The municipality of Tanauan has a total population of 55,021 as of August 1, 2015 based on the

results of the 2015 Census of Population. It was higher by 4,902 persons as compared to 50,119

total count in 2010 and higher by 9,965 persons from its total count of 45,056 in 2000. It ranked

9th among the cities/municipalities in Leyte with a high population count in 2015. Its population

in 2015 comprised 3.2 percent of the total population of Leyte (excluding Tacloban City). It

grew at the rate of 1.79 percent annually from 2010 to 2015, which is higher by 0.72 percentage

point from its population growth rate in 2000 to 2010 of 1.07 percent.

The household population of Tanauan totaled to 54,953 persons in 2015, which is 9.8 percent

higher than its count in 2010 at 50,052 persons. Majority or 99.9 percent of the total population

in Tanauan in 2015 are household population. The remaining 0.1 percent or 68 persons

comprised institutional population or those residing in collective or institutional living quarters

such as hospitals, rehabilitation centers, orphanages, hotels, motels, inns, lodging houses,

dormitories, military camps, corrective and penal institutions, logging, mining,

construction/public work camps, and other institutional living quarters. The number of

households in 2015 reached 13,518, higher by 2,539 households from 10,979 in 2010. The

average household size in Tanauan declined from 4.6 in 2010 to 4.1 in 2015. This municipality

posted the 6th highest number of households in Leyte in 2015. The estimated total land area of

Tanauan was 78.41 square kilometers as per data from the Land Management Bureau of the

Department of Environment and Natural Resources. The resulting population density in 2015

posted at 702 persons per square kilometer, higher than in 2000 and 2010 at 575 and 639 persons
per square kilometer, respectively. Tanauan recorded as the fourth most densely populated

municipality in Leyte since 2000.

Of the 54 barangays of Tanauan, Barangay San Roque (Pob.) registered the biggest population

with 5,032 persons in 2015 or 9.1 percent of the municipality’s total population. The remaining

barangays which completed the top ten (10) barangays in terms of population were Canramos

(Pob.) (3,634.), Santo Niño Pob. (Haclagan) (3,549), Cabuynan (3,400), Bislig (3,217), Pago

(1,733.), San Miguel (Pob.) (1,442), Licod (Pob.) (1,306), Mohon (1,240), and Salvador (1,224).
B. Demographic Data

-The location of the BAZA Seaside Center is in the middle of the town. The mall is in the

vicinity of the commercial area whereby offices and residential areas are already established. The

mall is accessible by public transportation. A two-story complex, most of which is open-air.

C. Marketing Plan

-BAZA Seaside Center will be going the first and only mall in the heart of Tanauan, Leyte. The

store is designed as big enough to cater all the needs of the locality. The mall is going to be the

one-stop-shop where shoppers can buy all their needs. It is develop to provide higher economic

income for the Municipality of Tanauan and provide local residents with job opportunities and/or

business opportunities. It is an established mall and uses outdoor advertising since the passable

area of the building is on the main Philippine national road that can give easy access to potential

customers in the area.

-Main focus is store layout that can give attractiveness and competitive advantages.

D. Detailed Marketing Cost

Description Estimated Cost

Banner Advertisement 50,000

Radio Advertisement 10,000

Total 60,000
2. Technical Study

Vicinity Map

3. Financial Study

Projected Balance Sheet

BAZA SEASIDE CENTER

ASSETS LIABILITIES
Cash 100,000,000 Notes Payable 98,000,000

Accounts Receivable 25,000,000 Accrued Expenses 20,913,700

Land 39,000,000 Total Liabilities 118,913,700

Land Improvements 10,000,000

Building 275,000,000 Equity

Equipment 1,086,300 Shareholders’ Equity 331,172,600

Total Assets 450,086,30 Total Liabilities + Equity 450,086,300

Projected Income Statement

INCOME

Rental Income 56,880,000

Total Income 56,880,000

EXPENSES

Management Salaries

Advertising Expense 60,000

Depreciation Expense 50,000

Licenses

Projected Cash Flow

Net Income (Pre-Tax Profit)

Depreciation

Accounts Receivable (xxxx)

Leasing Commissions (xxxx)

Tenants Allowances (xxxx)

Furniture and Equipment (xxxx)

Accounts Payable

Net Cash

CONCLUSION
 A careful and thorough study should be done first and be given enough attention
before establishing a business to ensure the success of the business venture to be
develop. It should go a thorough process of study as to whether or not, the
business is fit in the area being develop, the profitability of the business, the
purchasing power of the localities and an established plan be made so as the
business would last amidst of the tough and stiff competition in the real business
world. Constructing a mall in a location where there is no mall yet is the best
business decision to be made as there is no stiff competition yet in the market.
The business will only have to focus on how to introduce the business in the
localities as it is still new to the market and find ways to attract customers and
develop a techniques and strategies to retain customers even when new
competitors will come along the way and stand still in the marketplace even when
the competition becomes stiff. BAZA Seaside Center will surely hit the market as
this mall will be the one-stop-shop of the localities where all their necessities will
be met. The only store that would cater large volume of customers with different
needs. The profitability is much greater as this mall will be the only mall in the
Municipality compared to other municipalities/cities where there is already a
voluminous number of established malls. And above all else, in establishing a
business, the business owner should not only mind the profit that could be derived
from the business that is being established but most importantly, on what benefits
 it could offer to the economy of the Municipalities and the localities residing on
it. Nowadays, consumer would rather choose a business that has social impact to
us, the one that would largely contribute to the socio-economic of the country that
would benefit all.
 This area would be the perfect match in developing a mall as the location is
accessible to everyone and wide enough to build a large mall with enough parking
space.
 We can conclude that this business has an opportunity to gain more profit for the
future. This business also will be able to stand strongly and our company will be
the best and strongest commercial building even though were new in the business.