MGT 374Real Estate Analysis
College of BusinessAlfaisal
UNIVERSITY
Making a pizza is not the same
thing as building a building
Chapter 5
Market Determinates of
Value
Booms and BustsSupply and Demand
Risk
Cycles
Creation
GrowthDecline
Regentrification
Land is always there
Peak
Growth
Peak
Decline
Reinvent
Cities must reinvent or they die
Fur TradeSteelCars
?
CitiesEasyTradeAccess
CitiesRicher
HealthierMore Choices
Economic Basewhat a city does
for the rest of the world
ActivitiesBase
Secondary
What are Riyadh’s
activities?
Location Quotient
local employmentcountry employment
Shape of the City
why is the center so expensive?
reduce travel timeopportunity costs
Middle Income Housing
Low income housing
Industrial
Burgess Model
Downtown
High Income Housing
Hoyt Modelhigh
income
IndustrialIndustrial
lowincome
lowincome
lowincome
Middleincome
Middleincome
CBD
Harris Ullman Model
multinuclei citiesnot one CBDlots of centers
Technology Change
trains to carsair conditioning
lightinginformation tech
Why are all the satellite stores at the same place?
Location
convenience: disperse
comparison: cluster