Final for Market Analysis

Question 1

What matters for a market analysis in Retail, Office, Multi-Family, Residential, Industrial?

Answer 1

-Trade area
-Demographics
-Zoning
-Land Use
-Deed Restrictions
-Competitors
-Flood Maps
-Roadway transit, pedestrian linkages

Question 2

for a trade area you need which two markets

Answer 2

primary and secondary

Question 3

what goes into demographics

Answer 3

Age, Employment Status, Income, Gender, Education, Families

Question 4

what factors do you need to consider with a competitor

Answer 4

distance, drive times, rent per square foot, vacancy rates

Question 5

for office space you need to evaluate

Answer 5

-Class
-Location
-Size
-Use and Ownership
-Features and Amenities
-Office Amenities include 3% of space goes to gyms and on-site dining
-Currently expect to dedicate 10% to office features
-employment growth

Question 6

what goes into the class of an office building

Answer 6

age, location, quality, quality of finish, building systems, amenities, lease rates, tenant profile

Question 7

for industrial what do you need to evaluate

Answer 7

-building size
-zoning
-location
-proximity to highways
-parking
-amenities (truck loading bays)

Question 8

Types of Retail Development:

Answer 8

1. Convenience
2. Drugstores
3. Home Improvement and Hardware
4. Restaurants and Bars

Question 9

Factors to consider when analyzing Retail development?

Answer 9

-Profitability
-proximity of retail development
-customer purchasing power
-location in the path of growth
-household income
-traffic counts
-complementary land uses
-effective age and reputation
-tenant mix

Question 10

biggest factor in retail development

Answer 10

PROFITABILITY: is the property going to make money

Question 11

KPI Factors

Answer 11

• CAP Rate
• Vacancy Rate
• Net Absorption Rate Positive
• Net Absorption Rate Negative
• High profitability means that demand is growing

Question 12

CAP Rate

Answer 12

as prices increase for a product, cap rate decreases which is good. This means the area is popular. Demand > Supply. Analyze the whole trendline to determine an increase or a decrease in the cap rate

Question 13

Vacancy Rate

Answer 13

a low vacancy rate is good; it means that many buildings are occupied. It means that Demand>Supply. Prices (Market rent) are higher, meaning market competition is increasing

Question 14

Net Absorption Rate Positive

Answer 14

more space is being leased than moved out of (Low vacancy rate)

Question 15

Net Absorption Rate Negative

Answer 15

more space is being vacated than occupied (High vacancy rate)

Question 16

hospitality real estate

Answer 16

• ADR (average daily rate) *occupancy=Rev Par (revenue per available room)
• Sold out nights- anytime a hotel has greater than 90% occupancy, if this happens you have more demand than supply

Question 17

Mixed use retail is:

Answer 17

on the ground floor and above it is office or multi-family; synergies (increased overall value at a specific time)

Question 18

Dis- amenity:

Answer 18

something that pushes people away; smell, ugly home, traffic rates

Question 19

Demand Example: (cars)

Answer 19

-People with cars buying products
-Customers with money $
-$114 per average square foot
-New demand, People who are already living there and want to be satisfied.
-What is the spending amount for auto goods, and what is the spending amount projected in the future?
-History of vehicles
-Location