Exam 6: Forecasting Value: Market Research

Suppose that you have begun to gather some demographic data in order to project the potential sales of a new development project.The developer hopes to be able to target the following household types who fall in the upper 10% of income brackets: Empty Nesters,Single Parents,and Unrelated Individuals.Utilizing the following population information,determine the core market share that the development project yearns to target with this project.Total Owner Occupant Households: 48,000;Traditional Families in the Upper 10% of Income Brackets: 25,000;Empty Nesters in the Upper 10% of Income Brackets: 5,000;Single Parents in the Upper 10% of Income Brackets: 10,000;Unrelated Individuals in the Upper 10% of Income Brackets: 8,000

Computer software systems that enable one to manipulate and "map" information with great flexibility and speed are referred to as:

Suppose a developer is interested in building a new apartment community.Through her market research,the developer has determined that the target market segment potential in year 1 consists of 100 households.The developer believes that the target market segment potential will grow by 5% annually over the next five years.If the developer projects a capture rate of 25% for each of the next five years,but is only to sell 26 apartment units in each of the next five years,in which year will her actual sales first fail to meet her projected sales numbers?

Suppose a developer is interested in building a new townhome community.Through his market research,the developer has determined that the target market makes up 10% (core market share)of the households that currently reside in the metropolitan area.If an analysis of data from the MLS indicates that there should be approximately 500 residential sales in this area over the next year,what is the projected number of units the developer could expect to sell in year 1 if he is able to capture 50% of the market potential?

Professor James Graaskamp often asserted that when one buys real estate,what one is buying is a set of assumptions about the future.Therefore,it is not surprising that the Beginning point of the market research process is to:

A popular adage in real estate is that property value is all about "location,location,location." However,for most property types in nonresidential realms,nonlocational requirements are equally or even more important.All of the following are examples of nonlocational factors EXCEPT:

In the initial round of market analysis,analysts will attempt to provide key numbers that characterize the current condition and trend in the market.For rental retail space,the key market parameters in question would most likely include all of the following EXCEPT:

A developer of a new planned unit development (PUD)has gathered the following market information for University City.The developer estimates that there will be 1,500 home (all types)sales in University City over the next year.If an analysis of demographic information has revealed that the core market share for the PUD project within the community is 14.0%,what is the total market segment potential for this project?

In the Elysian Forest example,the planned unit development was destined to be an unsuccessful venture from its inception because:

While predicting real estate cycles is difficult,a key indicator used to evaluate where a property is within the cycle is:

In contrast to conventional market analysis,the "story" approach to market research starts with an analysis of:

Since most data for a given market study is not readily available,analysts must be creative In their use of data that they are able to obtain.The primary source for detailed household demographic information is:

Survey research has been applied to real estate markets at many levels.Despite its frequent application,analysts must be cautious with survey use because:

In collecting data for nonresidential property analysis,it is helpful to understand the business community that currently exists in the specific area in question.A preliminary approach for ascertaining the number of firms by size,industry,and location is to obtain data from:

Suppose a developer is interested in building a new apartment community.Through her market research,the developer has determined that the target market segment potential in year 1 consists of 100 households.The developer believes that the target market segment potential will grow by 5% annually over the next five years.If the developer projects a capture rate of 25% for each of the next five years,how many units does she plan on selling by the end of year 5?

Real estate market research is an important process used by analysts to facilitate a better understanding of a property's future profit potential.All of the following statements regarding market research are true EXCEPT:

The most common definition of a city used for government data collection and reporting,identified as a single labor market area centered around a city with a population of at least 50,000 people,is referred to as a:

In the Palm Grove Office Complex example,the project was destined to be an ill-fated venture from its inception for all of the following reasons EXCEPT:

A developer of a new townhome community has gathered the following market information for University City.The developer estimates that there will be 1,200 home (all types)sales in University City over the next year.An analysis of demographic information has revealed that the core market share for the townhome project within the community is 10%.Assuming a capture rate of 20%,what is the developer's first year projection of townhome sales in the new community?

Preferences of households can vary with time,prosperity,and context.The nuances in the preferences or needs of market subgroups are commonly referred to as: