discovering demand

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Demand. What is it? How is it created? What causes it? How to capture it? This course answers these questions and reviews the first three of nine Demand Triggers. Also, provides guidelines on how to create a Demand Matrix to determine which site has the highest Demand Potential in any given market.

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  • 1.Discovering RealEstate Demand For your next project

2. Discovering Real Estate Demand D. Scott Smith, CCIM Professor of Real Estate Fair Housing, Steering, Blockbusting Its a NO NO! No magic bullet theory 3. Discovering Real Estate DemandWhat you need to do to make money, isto focus on where is the demandhttp://video.cnbc.com/gallery/?video=3000072098 2:17 4. Discovering Real Estate DemandRETHINK Real Estate( first know the established model ) 5. Discovering Real Estate Demand Traditional Demand Model Economic SectorsBasic + Non Basic Employment Economic Base MultiplierTotal Employment / Basic Employment 6. Discovering Real EstateDemand Traditional Demand Model Location Quotient Total Industry Local / Total Local Employ_________________________ Nation Industry Total / National Total Employ Standard Industrial ClassificationSystem Shift Share Projections 7. Discovering Real EstateDemand AbsorptionThe rate at which supply is reduced over a given time periodAnswers the how of demand 8. Discovering Real Estate Demand Demand Matrix Demand TriggersAnswers the why of Demand 9. Discovering Demand D2 = Hassle FreeEmotionReusableD2={ H x E x R }Best overall{BxAxL }Affordability{DxI xP } Herbal Dip LocationDemographicsIndicatorsPsychographics 10. Discovering Real EstateDemand Demand Matrix Demographics Who will buy it? Psychographics Will they like it? Economic Indicators Will they be able to afford it? 11. Discovering Real Estate DemandDemand Trigger #1 - Demographics 12. Discovering Real Estate Demand Demographics Age Sex Income Location Interests 13. Discovering Real EstateDemand Study of characteristics in an identified market Hard facts and external realities Census and point of sale driven 14. Discovering Demand 15. Discovering Demand 16. Discovering Real Estate Demand What are the Demographicsof the Room? 17. Discovering Real Estate DemandDemographics report can be found atwww.putrealestatetowork.comAccording to the roomsdemographics, what type of real estatewould have the most demand?How about in five years? 18. Discovering Real EstateDemandDemand Trigger # 2 - Psychographs 19. Discovering Real EstateDemandIf Demographics are the hard facts,Psychographs are the sensory componentCategorization about how you feel aboutsomethingThe key to understanding what motivatesa customer 20. Discovering Real Estate Demand How is information gathered? 21. Discovering Real EstateDemand Survey method Social Interactions Data Mining Companies Search Engines 22. Discovering Real EstateDemand Values, Attitudes, Lifestyles SystemVALShttp://www.strategicbusinessinsights.com/vals/free/2010-06-VALSbrochure.pdfEight basic market segmentations 23. Discovering Real Estate DemandInnovatorHighest incomes, high self-esteemExpression of tasteConsumer choices are "finer thingsImage importance 24. Discovering Real Estate DemandThinkersHigh-resource group and idealisticMature, well-educatedWorld views, open to changePractical consumers and rationaldecision makers 25. Discovering Real Estate DemandBelieversConservative and predictable consumersFavor American products and brandsFocused on family, community, and religionModest incomes 26. Discovering Real EstateAchievers DemandMotivated by achievement and work-orientedsatisfaction from jobs and familiesPolitically conservativeRespect authority and status quoFavor established products and servicesthat show off their success to their peers. 27. Discovering Real Estate DemandStriversLow-resource group,Motivated by achievementsValues very similar to achieversHave fewer economic and social, andresources.Style is extremely importantStrive to emulate people they admire 28. Discovering Real EstateDemandExperiencersMedian age of 25.Energy, physical exercise, social activitiesAvid consumers, spending on clothing, fast-foods, music, etc.Emphasis on new products and services 29. Discovering Real Estate DemandMakersPractical people who value self-sufficiency.Focused on the familiar-family, work, andphysical recreationHave little interest in the broader world.Appreciate practical and functionalproducts 30. Discovering Real Estate DemandSurvivorslowest incomes.few resourcesmedian age of 61tend to be brand-loyal consumers 31. Discovering Real Estate DemandUse the VALS survey method to determinethe Psychographic of the rooms leadingdemographics.Would the Demand analysis change fromDemographic to Psychographical analysis? 32. Discovering Real Estate Demand Demand Trigger # 3Economic Indicators 33. Discovering Real EstateDemandWhy Economic Indicators?Used as a forecast for local and nationaleconomies.Demonstrate when an economy expandsand contracts. 34. Discovering Real EstateDemandIndicators for Spending, Manufacturing,Housing, Inflation, Productivity, andEmployment 35. Discovering Real EstateDemandDifferent Indicators will beused for: Office, Retail, Housing, Industrial Buyer vs. Tenant Business and Personal Financing 36. Discovering Real Estate DemandSeveral BIGGIE IndicatorsEmploymentReleased on 1st Friday each monthMeasures job growth Consumer Confidencelast Tuesday of the monthMeasures how consumers feel about economy, etc. 37. Discovering Real Estate DemandSeveral BIGGIE Indicators Gross Domestic ProductQuarterly w/ revisionsMeasures how fast or slow and economy is growing Consumer Price IndexMonthly followingMeasures inflation in retail goods and services 38. Discovering Real Estate DemandEconomic Indicators as it relates toReal EstateHousing StartsMonthlyMeasures new homes and permits for future homes.Existing Home SalesMonthlyMeasures monthly sales of prev. home sales 39. Discovering Real Estate DemandNew Home SalesMonthlyMeasures Sales of New HomesWeekly Mortgage ApplicationsMonthlyMeasures number of applications to purchase/refihomes 40. Discovering Real Estate Demand Trickle Down EconomicsEach local economy has similar data toeach area.Determines Local, National, andInternational Economic conditions andwhere they are heading with reasonableaccuracy. 41. Discovering Real Estate DemandEconomic Indicators can be found athttp://www.census.gov/cgi-bin/briefroom/BriefRmA complete calendar can be foundhere:http://www.census.gov/epcd/econ/www/indicator_calendar_date.htm 42. Discovering Real Estate DemandEconomics and Statistics Administration http://www.esa.doc.gov/Bureau of Labor and Statisticshttp://www.bls.gov/bls/newsrels.htm 43. Discovering Real Estate Demand Demand Matrix ResultsConclusion 44. Discovering Real Estate DemandPutting it together 45. Discovering Real Estate DemandPutting it together 46. Discovering Real Estate DemandPutting it together 47. Discovering Real EstateAge 35-50 DemandMaleIncome-Location- Texas ( major MSA)Psychograph- Achievers / ThinkersIndustry- Higher EducationWorks in a OfficeHousing TypeWhere is there a gap and demand? 48. Discovering Real EstateDemandGive each Trigger a value from 1-10 and findthe average for each locationLocation #1 H- 7D- 4 E- 6I- 8 R- 5P- 5 B- 9 A- 7 L- 7 = 6.44 49. Discovering Real Estate DemandFor your next projectThank you!