1. Conduct an economic base analysis for the San Francisco
County, CA. First, calculate the location quotients (LQ) for this area relative
to US TOTAL based on 2-digit NAICS code (i.e., at sector level) in 2011 and
determine which industries are basic in the region (you can calculate LQ
through the BLS website <
http://www.bls.gov/data/
> ) Then, please briefly discuss your findings and the implications to the San Francisco commercial property market.
2. Based on the 3 Urban Models ( Monocentric Model, Multicenter Model. and the Axial Model)explain the growth and development pattern of the Orlando metropolitan area (oranother metropolitan area that you choose). In your opinion, which model can bestdescribe the development pattern of the metropolitan area? How does thispattern influence the local real estate markets?3. Briefly describe the four quadrant model for real estate property and capital market. You should include graphs when discussing the mainidea of the model. Now, suppose the demand for real estate in the market increases.As a result, the demand curve in the northeast quadrant shifts up. What willhappen to rent, asset price, construction and stock of real estate assets in thenew equilibrium? Please explain.4. Briefly answer each of the following questionsregarding the lease by lease analysis. Please includethe calculation or intermediate steps when necessary. [20 points]a) A tenant signs a lease and pays $12.50 per square footin base rent and pays operating expenses and real estate taxes estimated at$8.25. This is generally referred to asa gross lease?True or False________ . Briefly explain.b) A tenant occupies 2,500 square feet and pays base rent of $29.00 per square foot. The tenanttook occupancy of the space in year 2000 and the base year stop was $5.25 persquare foot. For 2004 the landlord hasestimated operating expenses and real estate taxes to be $7.00 per squarefoot. How much will the tenant pay inbase rent in 2004? ____________How much will the tenant pay for operatingexpense & real estate tax recoveries in 2004? ____________. Assume no inflation.c) A retail tenant occupies 5,500 square feet in a 100,000square foot shopping center. The lease calls for the tenant to pay a pro-rata share of common area maintenance expenses. In addition, an administrative fee of 15% should be paid (i.e., basedon the common area maintenance expenses that the tenant should pay). Commonarea maintenance costs are estimated at $400,000. How much does the tenant pay in common areamaintenance and administrative fee on an annual basis?
.d) A tenant signed a lease in July of 2001, requiring thatthe tenant’s base rent of $10.00 per square foot would be increased on a fiscalyear basis based upon increases in the consumer price index. Assume that CPI willbe 3% per year, what should the tenant be paying in base rent on a rate persquare foot basis as of July 1, 2004?e) A retail tenant pays percentage rent of 3.0% over anatural breakpoint based upon a rental rate of $10.00 per square foot. The tenant leases 4,000 square feet and isestimated to generate $1,500,000 in sales for 2004. What is the tenant’s retail sales breakpointper square foot?____________. How muchwill the tenant pay the landlord in percentage rent in addition to the baserent of $10.00 per square foot? ________. 5. According to an economic impact study conductedby Tripp Umbach, the nation’s leader in economic impact analysis for academicmedical centers, the new College of Medicine at Florida InternationalUniversity may generate 66,000 new jobs and have an annual economic impact ofmore than $8.9 billion within 16 years. The college, which had its first classin August 2009, already had an annual economic impact of more than $100 millionin South Florida. Recently, the President of FIU indicated that FIU would meetwith representatives from the Miami-Dade County Fair & Exposition, Inc. andMiami-Dade County to explore the possibility of finding a new location for theFair so that FIU can expand into the location that currently is the fairgroundsadjacent to the MMC (the FIU main campus).Inlight of these potential growth and development activities, suppose you have been hired by a developer/investor to conduct market analysis in the MMC area.Specifically, you need to determine whether a new office, hotel, apartment or retail property should be built around FIU’s main campus area in the next 5-10 years. Assumethat most of the teaching and medical facilities of the College will be built aroundthe main campus area. This basic market analysis would serve as the startingpoint for a more complete market research study. Please focus on definingmarket and demand & supply analysis. Also, please outline potentialcompetition if there is any.Note:you should determine only one of theproperty types that you believe is the most feasible/profitable development. Also,the level of market analysis should be “Level B”, that is, present yourarguments with necessary statistical support and graphs (using data from Costarand/or STDB, etc..) but no need for extensive interview or valuation analysis.Please do not write your report more than 5 pages