Condensed Chapter 6 Slides

Condensed Chapter 6 Slides - Chapter 6 Office &...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 6 Office & Industrial Property
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Major Topics “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Office Property Defining office space quality The demand drivers for office space Translating employment growth to office space demand The trends that shape the amount of space required per worker The supply drivers for office space Industrial Property The demand drivers for Industrial property Factors driving the location decisions Affect of e-commerce Physical and design trends
Background image of page 2
Office Property Definitions “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Class A Excellent location and accessibility Rent rates in upper 33% of total office market range Class B Good location and access Rent rates in upper 60% of market sector’s range Class C Buildings generally more than 15 years old Rent rates in lower 40% of the market sector’s range
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Net Usable or Leaseable Area The actual area of a floor or an office suite that can be occupied Efficiency Ratio The percentage of total usable space to the total gross space in the building. Load Factor The percentage of space on a floor that is not usable, expressed as a percentage of usable area. Office Property Definitions
Background image of page 4
Reasons for cyclic Real Estate market “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Competition and need to anticipate the market Lead time factor Inconsistent capital flows Lease terms Typical Cycle Recovery Phase:  Excess supply  keeps rent low, little  or no construction,  demand picks up Expansion Phase: Rising  occupancy and Rents,  increased construction  rates Mature phase:  increased vacancy,  construction still on  going Correction phase: rents  declining, minimum new  construction
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Office Market Demand Analysis “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

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.

Page1 / 22

Condensed Chapter 6 Slides - Chapter 6 Office &...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online