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.