Commercial Real Estate Analysis and Investments, D. M. Geltner, N. G. Miller, J. Clayton, P. Eichholtz
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Rank-Size Rule (also known as Zipf’s Law) states that a city’s population size tends to be proportional to the largest city’s population divided by the city’s rank (its position in population size hierarchy). Mathematically:City Population = Largest City’s Population / Rank of City For instance, if the largest city in a country or region has…
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The Four Quadrants Diagram illustrates the system of forces in the real estate sector. The interaction between the development sector, the capital market, and the space market creates a long-term equilibrium. Source: Commercial Real Estate Analysis and Investments by D. M. Geltner, N. G. Miller, J. Clayton, and P. Eichholtz. This model effectively explains market…
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To assess the growth potential of a city, an analysis of its economic base is employed. What does this entail? The economic base of a city is divided into two parts: export-oriented industries and local services. If a city produces surplus goods and “exports” them, it attracts a workforce to the corresponding export industries, which…
