Page 55 - Trump University Commercial Real Estate 101

Ho w to Read a Market

You can get traffic counts from the local city government, which
should be collecting this data regularly. Compare previous traffi c
counts with the current ones to discover any trends. If it ’ s going down,
is it because population is leaving the area, or because new roads have

opened up, thus taking the traffic away? Study these numbers and for-
mulate your questions. Then talk with the economic development
people and your own network of brokers and property managers to get
the answers.

Traffi c Flow

Determine which way the traffi c flows at different times of the day. Is

it local traffic, or people passing through as part of their commute?

What about future plans of the transportation department: Is there a
chance they will widen the roads in the future? If so, try to judge how
that will affect your traffi c flow, including the ability of traffic to come

in and out of your site.

School Districts

This is an extremely important factor when you plan to own apart-
ments. Some school districts are far better than others. Many parents
are drawn to districts that will give their kids the best education.
In fact, a school district can make or break a property. If you have
a nice A property in an inferior school district, it will be much harder
to keep it fully occupied at A - level rents. The bad school district is
enough reason for A tenants to move out or never move in, and they
have the money available to enjoy multiple rental options.
We own a property where the school district runs right down the
center of the property! Children in one part of the complex go to a dif-
ferent school from kids a few feet away in the other part of the com-
plex. When there are vacancies in front units (the better school district),
parents will frequently ask to be moved there.

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