One way to measure the impact of economic growth or decline in one industry on the entire regional economy is with a tool known as economic base modeling. Economic base analysis was developed in 1928 when Robert Haig was working on a plan for the regional economic development of New York. An economic base analysis …
The Location Quotient is an important tool that allows you to evaluate the strength and size of a particular industry in a region. A Location Quotient is a way of quantifying how concentrated an industry or even a particular demographic group is within an area compared to the country as a whole. Utilizing the location …
The information conveyed in a real estate market analysis should provide data necessary to fully understand the location and market dynamics. One of those components is an analysis of the economic and industrial core of a location. The primary industries of an area determine the supply and demand conditions for specific types of real estate …
One of the fundamental requirements of a market analysis is the ability to understand the economics of the location. To fully understand the value that a property in its current or planned use brings to a market, one must consider the economics of urban growth patterns as well as the overall market activity and health …
The phrase “location, location, location” is a phrase used over and over again in the discussion of real estate markets. It continues to be as relevant today because location is ultimately what brings value to a piece of real estate. For example, a high-rise office building in downtown New York City would have comparatively little …
A detailed market analysis is key to any real estate investment decision. Even though the financial projections have far more impact in management and investment decisions, market analysis is behind each and every number in the financial statements. So, it is important to take the time to gather the data required to fully understand the …
Many real estate investors fail to recognize the importance of the market analysis. Whether they lack the skills and knowledge to complete the market analysis or just don’t understand the benefits, market analysis is an undervalued asset in real estate investment. In reality, the market analysis is the most important element in evaluating a real …
For months you’ve been looking. Best Technology Company, Inc. (BTC), your long-time national client, has charged you with finding office space they can lease for their new headquarters. Their requirements are few. In addition to the obvious (i.e., being cost effective and large enough to house their workforce), the building must: (1) have state-of-the-art office …
Every day, and in every market, there are office deals to be made. The question, of course is which will become valuable assets in your real estate portfolio, and which could put the rest of your portfolio in jeopardy. The answer is a thorough and thoughtful investment analysis. We’re going to walk through an office …
Let’s start with the easy stuff. Common area maintenance charges, or CAM charges, are defined by USLegal as the fees: usually paid [by tenants] on a pro rata basis, to compensate the landlord for the costs of operating, repairing, and maintaining common areas. Well that’s a pretty good start, but let’s add one more category …