Real Estate Market Analysis

Real Estate Market Analysis

Question

1. Simon
Property Group (.simon.com”>www.simon.com) is one of the
largest real estate companies in the world which in particular owns hundreds of
shopping centers in the US as well as overseas.

(a)
Pick one of their shopping centers in
California. On the website find and summarize in your write-up information for:


Mall type


GLA


Main anchors


Size of trade-area resident population and examples
that the website gives of residential communities


Size of trade-area non-resident population and
examples that the website gives


Main competitors in the trade area that the
website gives

(b)
Using “Reilly’s Law of Retail Gravitation”
calculate the break-point distance for your shopping center in part (a)
relative to the nearest Simon Property Group shopping center. Use GLA sizes for
“populations” in the formula. What does the result tell you? Explain.

2. For
Los Angeles metropolitan statistical area calculate the Actual Sales Index for
personal care products and services based on the most recent available data.
For the data use the US Census’ FactFinder “Advanced Search”, select the right
geographies and the right NAICS retail category. In addition, for Los Angeles
metropolitan statistical area calculate the Spending Potential Index for
personal care products and services for the same year. For the data go to the
Bureau of Labor Statistics website, in the search line type “Consumer
Expenditure Survey”. On the new page under “geography” you can then find data
for the right geography.

Do your results suggest “leakage” or “inflow” of consumer
spending in Los Angeles MSA? Explain.

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Real Estate Market Analysis