Embedded Files
Market analysis is the first step of the development process. If there is no market in which a project can exist then it immediately becomes unfeasible. Every market presents different challenges and opportunities for development. While a hotel may typically make sense in high traffic area or transportation corridor, it may fail in if the proper research is not done prior to development. Market analysis forms the basis for the highest and best use of each property.
Assignment 2 excel chart.xlsxBureau of Labor Statistics assignment showing the division of jobs in a local area.
(Source: FINC 664 Dr. J. Russel Peterson)
(Source: FINC 664 Dr. J. Russel Peterson)
There are an innumerable amount of tools and methods used for determining the best location for a development, but a safe starting point is understanding the demographic and economic make-up of the community. Demographics of a particular area are things such as: education level, age, and household income of your target area. These concepts paint a general picture of the type of person in the area as well as their relative spending power. The economic metric is used to determine the general industry in the area. These two market analysis tools form a base line for what could be feasible. Simply put, analysis of the local demographic and economic data can tell you that an expensive retirement community would likely not be feasible in a low income area of young professionals. While the idea behind this concept is very straightforward, factors such as these may not be immediately obvious without the proper market analysis.
Page updated
Google Sites
Report abuse