Market Research & Analysis Flashcards
7 cards from real REA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Market Research & Analysis flashcards as text
The 'highest and best use' analysis in real estate requires that the use be:
Answer: Legally permissible, physically possible, financially feasible, and maximally productive
Highest and best use must satisfy all four criteria: legally permissible, physically possible, financially feasible, and maximally productive.
A real estate analyst using a hedonic pricing model is attempting to:
Answer: Isolate the value contribution of individual property attributes
Hedonic pricing models statistically isolate how individual property characteristics (size, location, amenities) each contribute to overall market value.
When conducting a competitive supply analysis for a proposed multifamily development, which projects should be included in the competitive set?
Answer: Existing and pipeline projects with similar unit mix, quality, and target renter profile in the submarket
The competitive set must reflect projects that would directly compete for the same tenants based on product type, quality, and location.
In real estate market analysis, 'shadow demand' refers to:
Answer: Latent housing need from households that are doubling up or living in substandard conditions
Shadow demand represents suppressed or latent housing demand from households not currently forming independently due to economic or housing supply constraints.
Which indicator is the LEADING indicator of future residential construction activity?
Answer: Building permits issued
Building permits represent authorized future construction and are classified as a leading economic indicator of housing supply activity.
A market analyst observes that office rents in a submarket are rising despite high vacancy. The most likely explanation is:
Answer: The vacant space is functionally obsolete and not competitive with new Class A supply being leased
When older, obsolete space skews vacancy upward while modern Class A space leases quickly, rents can rise even as aggregate vacancy remains elevated.
In a retail market study, 'sales per square foot' is used primarily to:
Answer: Measure retail tenant productivity and benchmark performance against industry standards
Sales per square foot benchmarks how efficiently a retail tenant generates revenue relative to its occupied space, indicating store viability.