Neighborhood Market Analysis
Physical Condition of Properties
Source: Dearborn Real Estate Education
BY: Robert C. Kyle & Floyd M. Baird, RPA/SMA
Generally, property management is carried out at the local
level. To determine the optimum income that can be realized from
building, the property manager must first determine the economic
climate of his or her neighborhood real estate market.
Neighborhood analysis should begin with a tour of the area. The
manager should assess seven major factors in the neighborhood market
area: Boundaries, land usage, transportation, utilities, economy,
supply and demand, neighborhood amenities and facilities.
Evaluating the data: Once the regional and neighborhood market surveys
are complete, the manager must analyze the information, keeping in mind
the special features of his or her particular type of property and
needs of potential tenants.
Exterior appearance: The appearance of the building is important.
Prospective tenants form their initial impression of the premises based
on what they see as they approach the building. With curb appeal
in mind, the property manager’s inspection should begin with the
overall outward appearance of the structure, including its age and
style as well as the condition of its walkways and landscaping.
If the building does not present as pleasing a fašade as others in the
area, he or she should suggest corrective measures to improve the
initial presentation of the premises.