End of Retail Property Chapter Questions and Answers

End of Retail Property Chapter Questions and Answers - End...

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End of Retail Property Chapter Questions and Answers 1. What is a simple method to project future retail sales growth? Can you suggest some refinements to this simple model? Answer: The easiest way to forecast sales is by extending past trends. That is if sales have increased by 3% a year for 5 years, merely extend this trend. More sophisticated methods will consider population and households trends, personal income trends and compare these to retail sales. Roughly speaking sales should increase by the sum of population growth plus personal income growth. Refinements consider the local market conditions, new supply, different tax rates among local areas and on-line sales from outside the area, as well as general economic trends such as unemployment and stock market trends. 2. GLA continues to increase faster then the population rate. What are some explanations for the increased space per capita? Answer: As our standard of living increases based on earning more real income the sales per capita increases. We simply consume more goods or more expensive goods. As sales per capita increase the space per capita increases as a result of more retail suppliers. Another explanation is based on the fact that retail concepts become old and tired and new venues take their place but it takes time for old concepts to fade away and so a wave of new formats will tend to increase the space per capita. 3. What is meant by capital pushed supply in terms of retail property? Answer:
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This note was uploaded on 02/07/2012 for the course FIN 4380 taught by Professor Staff during the Spring '08 term at Texas State.

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End of Retail Property Chapter Questions and Answers - End...

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