REAL 4830 Lecture Notes - Lecture 4: Market Analysis, Market Segmentation, Deindustrialization
12 Apr 2018
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Goal of market analysis: how many units can we sell/rent, over what time period, at what rent/price, need to project demand for the type of space we are constructing and competitive supply (existing and projected) Market feasibility: real estate market analysis forms the basis for the assumptions that are made about the future value of a real estate development, market analysis is a critical risk management technique. It reduces or at least delineates the riskiness of projected cash flows. Market analysis: collection of practical and analytical tools designed to help answer decisions such as: What size of building to locate on a site. What rent and term should be on a particular lease. How many units to build this year. Which cities and property to invest in. Where to locate new retail outlets and which stores should be closed. High investment sales activity: transition phase.
