Archive
Category: Real Estate
Pattern of City Size – Zipf’s Law
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 […]
The DiPasquale-Wheaton 4-Quadrant Diagram
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 […]
Economic Base of the Growth of Cities
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 […]
TWR VS IRR
To evaluate real estate, TWR (Time-Weighted Return) is often used instead of IRR (Internal Rate of Return). TWR represents the geometric mean of returns derived from operational income […]
Real Estate: Diversification & Inflation Hedge
Diversification is often a key factor driving investment in real estate. The charts below illustrate the efficient frontiers of two portfolios for the period 1978-2009. On the vertical […]
Disposition of Real Estate
As with any other income-generating asset, replacing real estate makes sense only if the funds obtained from selling it can be invested in another asset with better returns […]