Tip of
the Month - July, 2021
Neighborhood Market Analysis
(cont. June 2021)
Source: Property Management & Managing Risk
Robert C. Kyle & Floyd M. Baird, RPA/SMA
Neighborhood analysis should
begin with a tour of the area,
Utilities: The cost and quality of
utility services in the neighborhood will also affect any type
of real property. Residential and commercial buildings must
offer certain basic amenities: gas, water, heat and
air-conditioning-to attract individual and corporate
tenants. Industrial users will be particularly concerned
with heavy-duty power line, sprinklers, separate sewerage
systems and other unique utility services.
Economy: A neighborhood that has a
diverse business sectro is in better economic condition than
an area that depends on a single major industry for its
support. The property manager can draw on several
sources of statistical information for help in assessing the
economic health of a neighborhood. Brokers, appraisers
and local newspapers are fruitful sources, as is the local
chamber of commerce, which should be able to supply data on
the number and type of businesses in the area, the volume of
their activity and the general trend of growth in the past and
for the future. Rental rates currently being charged in
the neighborhood are another sound indicator of the present
economic strength of the real estate market. When space
is in short supply, rents are high.
(cont. August 2021)