REAL 1820 Lecture Notes - Lecture 7: Gross Income, Earnings Before Interest And Taxes, Operating Expense

• School: University of Guelph
• Department: Real Estate and Housing
• Course: REAL 1820
• Professor: Jian Zhou

Document Summary

Topics: office demand analysis, office supply analysis. Gross space: the total square feet of an office building. Usable space/leasable space: gross space minus common area (like halls, elevators, bathrooms, etc). A measure of the area that can be rented. Efficiency ratio: leasable space / gross space. This ratio is always < 100%. Sectors requiring office space: finance, professional and business services ( advertising, lawyers, insurance, accounting), and information sectors (broadcasting, publishing, etc). Begin with an estimate of future employment growth in the local market. Data source: statistics canada, canada business network, public agencies such as economic departments of municipal governments; private data vendor; Get to know the employment that needs office space - (i. e. Construction workers do not need office space. ) Get to know the average square footage per office worker or space per worker. Space per worker = total known occupied space / number of office workers in the area.