Author: Robin A. Howarth and Emil E. Malizia

Start Page: 15
End Page: 34
Volume: 16
Issue Number: 1
Year: 1998
Publication: Journal of Real Estate Research

Abstract: This article focuses on ways to improve market analysis for proposed office projects, taking time and data limitations into account. The discussion moves sequentially through the three primary components of systematic, logical market analysis: the market overview, the market study and the marketability study. Key suggestions cover: (1) discussing megatrends affecting office user preferences and product design; (2) estimating long-term attractiveness of the office location and site; (3) forecasting balance or imbalance between future demand and supply of office space at the metropolitan level; (4) segmenting and differentiating supply and demand at the submarket level for the purpose of assigning market capture rates; and (5) conducting sensitivity analysis of the key variables affecting project net operating income.