The Purposes of Retail and Real Estate market analysis is needed to understand the following:
(This can be a helpful kit for the interested candidates who want to know more about "Real Estate Market and want to Invest on it")
A way to share my level of skills and understanding.
- Assess market feasibility for economic uses and type of development at specific sites.
- Define target industries to attract to a community or development projects.
- Determine market potential/recruitment targets for commercial districts.
- Improve understanding of customer markets for existing businesses to inform technical assistance and promotion work.
- Inform zoning and project design for land use, project and site planning.
- Feasibility analysis and planning for development finance institutions.
Further, Qualitative and Quantitative method should be undertaken to analyze the market with the following four steps:
- Demand side analysis.
- Supply side analysis.
- Analysis of special conditions, opportunities and market segments.
- Integrate analysis to define target markets, type of development/products/services to implement, and level of unmet demand (e.g. net warranted space for retail uses).
Critical goal is to identify undereserved market demand and market gaps to fill.
Demand analysis varies by use:
Retail demand is driven by local income and spending.
Office and industrial real estate demand is driven by business and employment growth.
Demand for financial services can be driven by demographic factors, e.g. concentrations of low-income and immigrant population, or needs among niche businesses or non-profits.
Supply side analysis also varies by development type and purpose:
Retail market analysis focuses on competition from existing and future stores.
Office and industrial analysis focuses on competition from current vacant space and future projects.
Development finance market focuses on services and competition from banks and alternative financial institutions.
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