Space Market Adds new Supply (landlords) Demand (tenants) Development Industry If yes Rents & оссирапсу Local & national economies Forecast future Asset Market Cash flow Supply Is development profitable? (owners selling) Capital Market- Property market markets required Demand cap rate Construction cost including land (investors buying) Causal flows Information gathering and use Exhibit 2-2 The Real Estate System Interaction of the Space Market, Anet Market, and Development industry

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter8: Production And Costs
Section: Chapter Questions
Problem 13QP
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What is a negative feedback loop? Give an example of a negative feedback loop within the real estate system shown in Exhibit 2-2.

 

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