Being a top asset manager for a
real estate syndication, or a

real estate investment fund
requires a lot of asset

management, it requires the
ability to handle the different

properties, the portfolio
properties, or even a single

property to know what's going on
so that you can make the best

decisions possible for the
benefit of your investors. We

talked in the first video about
property analysis, and we talked

in the second video about
financial analysis. So this

third video was going to talk
about market analysis, what is

going on in the market, because
that's going to drive not only

how we run our assets, not only
how what we do in order to

govern them, but also just how
we look at whether it's time to

buy more power assets itself, or
is it time to sell them, they're

all going on at the same time.
So we talked about different

approaches to it not only demand
drivers, but in this video,

we're also going to talk about
the hierarchy of market

analysis, and a framework for
looking at it under that

framework. So this is a blast
from the past video. It is from

a series of videos I put
together for very high top level

real estate professionals, not
only the best performing

brokers, also people from REITs
and other investment funds,

really who are performing at
that top level, but wanted to

take on the umbrella, do their
own syndications put together

their own investment funds. So
this video is from that series,

I know you're gonna find it
useful.

We're talking about operations,
or we're talking about custody.

And in this particular video,
we're talking about the market

analysis. Now you may 1, ask
yourself, why are we talking

about market analysis, I thought
that something that we do when

we're finding the property?
Well, the reason we do it is to

set a baseline for when we have
that property, and we're going

to be doing property management,
we have that baseline of where

it is that baseline for the
market analysis is going to feed

back into the command. And it's
going to feed back in May

helping us make better decisions
about what's coming down and

changes that are happening. It
also is going to make an impact

when we do this analysis, we
will be able to use this as well

to communicate better with our
investors about where the

property is, at each moment
whenever we send those analysis

is to them. So that they always
have an up to date feeling

about, you've got your handle on
the property. So the reason is

to set a baseline. And to
measure change from in order to

get from point A to point B, we
first have to know exactly where

point A is, we have to know
where we are on the map at any

given point. And so in order to
get there, the only way to do

that is to begin by doing a
market analysis as well of the

property. So that's the that's
the rationale behind we do it.

Now to start us off on this
discussion of market analysis.

Let's talk about what those
drivers are some of the stuff.

Let's talk about what the
drivers are that changed the

values of property, whether it's
that demand. So what are the

demand drivers?

What are those demand drivers
for a property? Well, I mean,

we've got our basic property
types, right, we've got our

apartments and this includes
homes as well.

So the primary driver of
apartments and single family

residences, is population.
Population is going up, there's

going to be an increased demand
on housing, right, that makes

sense and populations going
down, then that's going to

create a decrease in the demand
on housing. What about for

office? and industrial

Well, we still have a demand
driver of population. Right? If

there's less people, there is
going to be less, less of a

demand that's put on offices and
industrial. That makes sense.

But the big one is employment.
And that makes sense to right.

So the more people that the more
jobs that are being created, the

more need there are for office
space or industrial space to

fill those jobs. Make sense,
right. And then lastly, let's

talk about retail. Again, we
have a demand of population is

important, right, because if
there's no people to shop there,

there's not going to be much of
a demand for retail. But it's

also a, it's a secondary demand
driver. It's also a secondary to

employment. But we still need
employment in order to have that

for retail. If there's people
not present in the marketplace,

like going for lunch, there's
not going to be demand for that

lunch place on the corner,
right. But the big demand is

disposable income. And so these
are the the demand drivers that

we keep our eye on, and they
need to be measured for

particularly for your property
or for your property types as

well. So as we go along, you'll
see that what we're doing is

we're looking at those very
specifically. So let's go, let's

actually erase this make some
room. So let's start with how we

do our building analysis, our
market analysis for building.

And here, we're going to start
with our our SWOT analysis. What

are the strengths of our
building?

What are the weaknesses of our
building? And this is as it

relates to the market itself.
What opportunities do we see?

And what threats are out there.
So, in other videos, we talk

specifically about those
property analysis that goes on

and we talked about the
financial analysis goes on. But

here now we're trying to look at
the building through a slightly

different lens, we're looking at
it through the lens of how is

this building seen in the
marketplace. And that's what the

SWOT analysis really focuses
very well on to being able to

see it through that lens. So we
come out a little bit. And now

we talk about, so we looked
first at the neighborhood or the

building. And now we're going to
zoom out, and we're going to

look much broader at the
neighborhood.

So we're zooming out, we're
walking away from the property,

and we're looking at the
neighborhood. And here we want

to document. I mean, we want a
map, we want to know where in

the neighborhood this is. We
want to know what the boundaries

of that neighborhood is just so
that we can document it and make

sure that we understand changes
to the neighborhood versus

changes to the city at large. We
want to know what lifecycle

stage we're in. So for the
different property types at this

point in time, where is
everything? Is this really an

expanding area? Are we in the
lifecycle is are we in an

expansion phase? Are we in a
recession phase, it makes a big

difference? Because it will
pinpoint exactly when we start

measuring changes that take
place in the area around us.

It'll start measuring so we can
say okay, well, we were

obviously in a in an expansion
stage at that point. So we would

expect to see now that it's much
later in the cycle. And now that

we're approaching oversupply
that now it's coming to be the

point where we would expect our
vacancies to rise a little. So

we're also wanting to have a
good idea of our demographics

and our psychographics and we'll
talk, we talked a little bit in

the video on market analysis for
finding the property about

psychographics. But it gives us
sort of the flavor of, it's more

of the qualitative view about
what who are the people in this

neighborhood? And then lastly,
what are the general trends? So

where has this this neighborhood
been going? Is it gentrifying?

Is it becoming more industrial?
Is it becoming? Is the income

levels going down? Are they
going up? Well, those are the

kinds of things we want to know.
And we set that baseline for it.

And so now we're going to zoom
out even further, we're going to

take another step back. And
we're going to say, Okay, well,

let's look at the entire region.
And in the region, now, we're

talking about the whole area,
maybe it's the Metropolitan

service area, maybe it is the
whole county, something like

that. And we're here, we again
want to know the demographics.

You know, particularly, we want
to know what the populations

doing. And employment. We want
to know, what's the general

absorption of new construction
or properties becoming vacant?

What's the normal vacancy? And
so for all of these, we want to

have this map. And now, there
are specific things that we

especially would like to know. I
mean, I would especially like to

see it documented early on. So
we have that baseline to measure

against. And I'd like to know
what what is the vacancy rate?

What is What are the sale comps?

What are the lease comps?

How, how are those demographics
set? And how are they changing?

And these go to all three of
these areas. I want to know

those for each of those. And I
want to know those because I

want to have that baseline that
I can measure against again, and

I can talk to my clients about
it. And I can also manage my

property much better based on
it. So that was the video on

market analysis. So not only
those demand drivers important,

but also that framework for
market analysis that hierarchy

framework. So what's important
at the property level all the

way to the very big version of
of what's important, and how it

affects everything. And so it's
that expanding view, that is a

the what top asset managers do
in order to be successful asset

managers. My name is Tilden
Moschetti. I am a syndication

attorney for the Moschetti
syndication Law Group. If we can

help you with your syndication,
putting together an investment

fund, we'd be happy to talk with
you. Not only do we help you

with the compliance piece of it,
but we also can apply all of our

expertise and knowledge in the
business aspect of being a

syndicator an investment fund
manager ultimately so that you

are successful. If we can help
you with that, please don't

hesitate to give us a call