03/6/08

Lecture:

1. Market research in the real estate development process
   
   1. Inception of an idea
      
   2. Refinement
      
   3. Feasibility
      
   4. Contract negotiation
      
   5. Formal commitment
      
   6. Construction
      
   7. Completion of formal opening
      
   8. Property, asset, and portfolio management
      
2. Developers downtown
   
   1. DB Harrell
      
3. Assignment due next week
   
   1. Notebook
      
      1. Site analysis
         
      2. Market analysis
         
      3. Profile immediate competition in primary market area
         
4. Back of the envelope Pro Forma
   
   1. Identify he tenant audience
      
   2. Estimate rental income per sq. ft.
      
   3. Estimate operating expenses per sq. ft
      
   4. Multiply leasable sq. ft. by project revenue
      
   5. Subtract operating expenses
      
   6. Multiply (NOI) by 10 = economic value
      
5. Actual development expense
   
   1. Land costs
      
   2. Site development costs
      
   3. Construction costs
      
6. Strategic decision making and market research
   
   1. Formulating goals
      
   2. Determining courses of action
      
   3. Consideration of talent and money available
      
7. Generating ideas
   
   1. Brainstorming and hitchhiking
      
   2. Nominal group technique
      
   3. Delphi method
      
   4. Environmental scanning
      
   5. Focus groups
      
   6. Surveys
      
8. Risk control
   
9. Competitive apartment communities in the market area
   
   1. SEE EXCEL FILE
      
10. Growth in major shopping center space, san antonio, TX Market, 1960 - 1992
    
    1. Typical shopping center anchors by type of center
       
11. Market research
    
    1. A tool for generating ideas
       
12. Market definition
    
    1. If you build it they will come
       
13. Kotler
    
    1. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with each other
       
    2. If people have a choice among products, their choice will usually be guided by their notion of value and their expectation of satisfaction
       
    3. A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. The size of the market depends on how many people share the need or want, have resources that interest others, and are willing and able to offer those resources in exchange for what they want.
       
14. Quiz - chapter - Inception of an idea
    
15. The four P's
    
    1. Product - property type
       
    2. Place - projects location
       
    3. Price - finish out, etc
       
    4. Promotion
       
16. The marketing concept: serving the potential customer
    
17. Site
    
    1. 15' back from sidewalk
       
    2. Floor by floor analysis
       
    3. Types of development
       

     
     

Notes: