Real Estate Market Analysis: Trends, Methods, and Information Sources, Third Edition

by Deborah L. Brett

Overview

Maximize opportunities and minimize risk with this practical guide for analyzing real estate markets. Whether you are a developer considering the suitability of a location, a lender evaluating financial feasibility, a planner gauging the best land uses for a community, or a public official reviewing proposals and incentives, this book explains how to assess development potential. Packed with illustrations and examples, you will learn how to define market areas, inspect proposed development sites, evaluate competitive properties, analyze supply and demand; find and interpret economic and demographic data; and understand the unique characteristics and trends affecting residential, retail, office, hotel, industrial, and mixed-use property types.

Product Details

ISBN-13:	9780874204292
Publisher:	Urban Land Institute
Publication date:	11/06/2019
Sold by:	INDEPENDENT PUB GROUP - EPUB - EBKS
Format:	eBook
Pages:	233
File size:	16 MB
Note:	This product may take a few minutes to download.

About the Author

Deborah L. Brett is a real estate and planning consultant for a wide range of private and public organizations, providing project-related market studies, consumer surveys, and trend analysis. Brett holds a master's degree in urban and regional planning from the University of Illinois at Urbana-Champaign. She is a long-time member of ULI and a frequent contributor to its publications. With Adrienne Schmitz, she co-authored the first and second editions of Real Estate Market Analysis and was a contributor to three editions of ULI's Real Estate Development: Principles and Practices. Both books are used by real estate and planning programs at many universities. Brett is also a member of the American Institute of Certified Planners (AICP) and Lambda Alpha, the real estate and land economics honorary society. She taught online classes in residential and retail market analysis for Rutgers University's Bloustein School of Planning and Public Policy.

Table of Contents

Abbreviations and Acronyms viii

Chapter 1 Understanding Real Estate Market Analysis 2

What Is Real Estate Market Analysis? 5

Why Do a Market Analysis? 5

How Does Market Analysis Fit into the Development Process? 7

Who Uses Market Analysis? 7

Who Does Market Analyses? 9

Factors Affecting the Cost of a Market Study 11

Summary 12

Book Outline 12

Chapter 2 Basic Approach to Real Estate Market Studies 14

Describing the Regional or Metropolitan Setting 15

Defining the Market Area 16

Inspecting the Site 18

Demand Analysis 19

Supply Analysis 20

Reconciling Demand and Supply 21

Recommendations 23

Importance of Illustrations 24

Providing an Executive Summary 25

Chapter 3 Market Conditions: Employment, Demographics, Demand, and Supply 26

Economic Indicators 28

Visitor Profiles and Tourism Trends 36

Consumer Demographics 36

Demographic Data Sources 42

Consumer Surveys and Focus Groups 45

Documentation of Historical Supply Trends and Current Conditions 49

Importance of Fieldwork 54

Documentation of Historical and Future Construction Activity 55

Presentation of Findings 55

Chapter 4 Housing 58

Housing Stock Overview: Products and Community Types 59

Single-Family and Multifamily Stock: Size and Age 67

Cyclical Nature of New Housing Construction 68

Characteristics of New Single-Family Homes 69

New Multifamily Buildings: Styles, Sizes, and Features 71

Housing Tenure 73

Demographic Trends Affecting U.S. Housing Markets 77

Preparing a Housing Market Study 83

Recommendations and Monitoring 97

Data Sources 98

Chapter 5 Retail Space 104

Why Do a Retail Market Study? 105

Trends in Shopping and Spending 106

Types of Shopping Centers 112

Staying Competitive 119

Prospects for New Construction 121

Preparing a Retail Market Study 122

Defining the Trade Area 123

Trade Area Demand Demographics and Purchasing Power 125

Using Shopper Data Analytics 129

Understanding the Supply Side 130

Construction Activity and Future Competition 131

Putting It All Together 131

Data Sources 131

Chapter 6 Office Space 136

Characteristics of Office Buildings 137

Using Office Market Studies 142

Preparing an Office Market Study 143

Defining the Market Area 143

Site Evaluation 144

Demand for Office Space 144

Tracking Supply 149

Evaluating Competitive Buildings 151

Putting It All Together 152

Data Sources 153

Chapter 7 Industrial and Warehouse Space 156

Characteristics of Industrial and Warehouse Buildings 157

Specialized Markets 162

Demand for Industrial Space 163

Defining the Market Area 164

Supply Analysis 165

Putting It All Together 169

Data Sources 169

Chapter 8 Hotels and Lodging 172

Hotels as Real Estate 174

Product Types 175

Preparing the Market Study 183

Evaluating a Site 184

Determining the Competitive Market Area 184

Analyzing Demand Segments 185

Fluctuations in Demand 189

Competitive Inventory 190

Future Supply 192

Projecting Performance 193

Data Sources 194

Chapter 9 Mixed-Use Development 196

Background 197

Analyzing the Market Potential of Mixed-Use Projects 200

Understanding Synergy 202

Using Consumer Research and Social Media 206

Putting It All Together 207

Appendixes 210

A Glossary 211

B Webliography 217

Index 224