10MARKET RESEARCH AND ANALYSIS
MARKET RESEARCH DEFINED
In the field of real estate, market research is the study of the attributes of a specific geographic area for the primary purpose of making a real estate investment decision. Market research is fundamental for a successful real estate investment decision. It provides a valuable insight into the market's trend and future outlook.
MARKET ANALYSIS DEFINED
Market analysis is the examination of market data obtained from market research to help make real estate investment decisions. In a market analysis, data such as the supply and demand for a specific type of real estate are analyzed and used in the determination of value for a particular piece of real estate. These data also can help in the determination of a real estate parcel's highest and best use. According to Geltner, Miller, Clayton, and Eichholtz:1
Market analysis is typically designed to assist in such decisions as:
- Where to locate a branch office.
- What size or type of building to develop on a specific site.
- What type of tenants to look for in marketing a particular building.
- What the rent and expiration terms should be on a given lease.
- When to begin construction on a development project.
- How many units to build this year.
- Which cities and property types to invest in so as to allocate capital where rents are more likely to grow.
- Where to locate new retail outlets and/or which should be closed.
It is important to note that a real estate market research analysis ...
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