THE PROPERTY MANAGER AS ECONOMIST-PLANNER After graduating from college with honors and a master's degree in eco- nomics, Charles Gill was hired by the local urban renewal authority in his home town of approximately 500,000 people. His responsibilities were in the areas of statistics, financial planning, and research. When activities of the urban renewal authority began to wind down upon completion of a major downtown redevelopment project, one of the directors, a businessman who had acquired some real estate investment property, hired Charles to manage one of his residential rental properties. The area's economy had slowed with the general downturn that occurred throughout the country and severely depressed the price of real estate in many areas, including property in Charles's town. In addition, a local defense factory had closed, leaving hundreds out of work. Charles saw there were suddenly many properties available that were priced far less than they had sold for just a few years before. Charles also saw that although the rental market was not booming, tenants were shifting where they could to buildings with lower rent. 1. Why is it important for Charles to note the area's economy when preparing a management plan for his new employer? 2. What does the shutdown of the local defense factory mean for Charles and the property he manages? 3. What does the decrease in local property values mean for Charles and the property he manages?
THE PROPERTY MANAGER AS ECONOMIST-PLANNER After graduating from college with honors and a master's degree in eco- nomics, Charles Gill was hired by the local urban renewal authority in his home town of approximately 500,000 people. His responsibilities were in the areas of statistics, financial planning, and research. When activities of the urban renewal authority began to wind down upon completion of a major downtown redevelopment project, one of the directors, a businessman who had acquired some real estate investment property, hired Charles to manage one of his residential rental properties. The area's economy had slowed with the general downturn that occurred throughout the country and severely depressed the price of real estate in many areas, including property in Charles's town. In addition, a local defense factory had closed, leaving hundreds out of work. Charles saw there were suddenly many properties available that were priced far less than they had sold for just a few years before. Charles also saw that although the rental market was not booming, tenants were shifting where they could to buildings with lower rent. 1. Why is it important for Charles to note the area's economy when preparing a management plan for his new employer? 2. What does the shutdown of the local defense factory mean for Charles and the property he manages? 3. What does the decrease in local property values mean for Charles and the property he manages?
Chapter1: The Role And Method Of Economics
Section: Chapter Questions
Problem 8P
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