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