Too many studios? Opinions wanted!

[David Levin]

Hey all! I am looking to take down two buildings totaling 18 units. Buildings are in Chicago. My concern is the unit mix. They are as follows:

Two 3/1

One 2/1

Nine 1/1

Six 0/1 

The studios are what I am most concerned with. I understand there won't be much room for increases. Right now there is room for a $25 increase on each studio. Anyone have experience with studios? Any insight would be greatly appreciated. Thanks!

[James Hamling]

@David Levin you left out the #1 most important information which will dictate what direction to go and that's demographics, demographics, DEMOGRAPHICS. 

You need to know what the ideal demographic is for a studio, 1br, 2br, 3br in THAT market area. Than look at the historical demographics that building has had and if it's stable, inclining, declining. THAN review the market demographics, do they match that ideal demographic for those units? Are those target demographics growing, declining, improving, what??? 

Much MUCH more math than just vacancy and rent rates.  

Also, impact considerations of reconfiguring unit compilation; is it feasible to reconfigure into a different unit configuration, at what costs? 

When you know who what the local market area demand is, what they want, it simply becomes a question of how you deliver such. And it's not just a today vision, it's now, 3yr, 5yr, 7yr, 10yr. Each marker will have different probability score, and will help lend to when to be doing ____ improvements.