Market Analysis Flashcards
What are the components of a market analysis report
Timely and accurate information, demographics, traffic studies, income, job/industry growth, absorption rates, vacancy rates, area population and growth
Polygons
Thiessen Polygons assumes that the customer will travel to the closest type of entity creating a polygon between the service and distance to home.
Primary Market
Gateway areas, ATL, where 60-80% of all consumption would be
Secondary Markets
Midsize cities or hot markets (Charleston, Nashville, New Orleans)
Tertiary Markets
Smaller less dense (Fringe Markets) Greenville, Asheville, NC
What can affect how a polygon trade area
Arterial Streets or Highway Exchanges
Benefits of visiting a site
Properly assess site conditions, there is no better data collection than the present i.e. Shoppes at Greenridge with more availabilities than listed
What are the components of a demand and supply Analysis
Demand- Satisfying a need, consumption, review of economic conditions
Supply- Satisfying a want, planning and forecasting, inventory and production (comparison between local market and metropolitan area)
Qualitative Data
Does not produce statistics but allows for a more detailed exploration into customer idealizations and perceptions and habits
Quantitative Data
Provides statistics on customer characteristics the proportion of people who respond in favor or not in favor
Capture Rate
Percentage of total demand within a targeted market segment that a project can attract. (The minimum amount of qualified consumers attracted to a project for it to stabilize)
Penetration Rate
The percentage of potential income-qualified demand within a targeted housing market area that is being captured by competitive projects
-Also referred to the share of the market that is currently captured by competitors and how a new addition to the market could potentially change.
Absorption Rate
The amount of real estate that will be leased or sold in a given time period– (months for residential and years for commercial)
What is the importance of demographics and how do they affect different asset classes?
Population growth or decline provides asset classes with valuable information.
-Retail: What kind of food, what price range
Apartment: Type of amenities, % of people that rent v buy
-Industrial: what supply chain needs consumers want
-Office: following workforce trends and political trends for working
Same store sales?
A measure of retail performance over time based on sales for a store chain’s location that have been open for more than a year
