Feasibility: RTAF Commercial Space Model

There are many important industry and economic factors to consider when analyzing  the demand of commercial real estate for feasibility. The most important factors to understand however are the most simple and fundamental: supply and demand.

Step 1 – Universe of Records by Industry

Real-time data provides the total number of business establishments stratified by industry.

Step 2 – Employment by Industry

Real-time data provides the total number of employees by industry projected out for five (5) years.

Step 3 – Employee Gross Square Footage

Total number of employees by industry is multiplied by average square foot per employee to provide total square foot demand by industry

Step 4 – Reduction Due to Vacancy Rate

The total square foot demand is then reduced by the available vacant properties currently on the market providing the gross new construction demand.

Step 5 – New Construction Demand

The gross new construction demand is multiplied by average square foot per employee providing the net new construction demand by industry.

 

Increasing Graph Demand