A market analysis is an integral part of real estate transactions. Think of it as the “due diligence” that reveals trends and helps industry professionals forecast the future. Commercial real estate market analysis looks at various demographic, economic, and socioeconomic factors within an industry. These could include local employment rates, housing vacancy rates, or the median cost of housing.
They also reveal crucial information about local supply and demand, market rents, capital market access, and a property’s revenue-generating potential.