REAL 1820 Lecture Notes - Lecture 5: Office Space, Capitalization Rate, Work Function

• School: University of Guelph
• Department: Real Estate and Housing
• Course: REAL 1820
• Professor: Jian Zhou

Document Summary

Gross space: the total square feet of an of ce building. Usable/leasable space = gross space - common area: a measure of area that can be rented/leased. Ef ciency ratio = leasable space / gross space (less than 100%) Vacant space & vacancy rate = vacant space / usable space ie: halls, elevators, washrooms etc. Real estate appraisal lawyers, insurance, accounting) and information sectors (broadcasting, publishing) Sectors requiring of ce space: nance, professional & business services (advertising, Area: new of ce space demanded = new of ce employment x space per worker. Example: employment growth is 5,000. (of which 50% are of ce). New of ce space demand = (new of ce employment) x space per worker. Replacement demand = of ce space demolished or converted into other uses: should be added onto the new demand but tricky to estimate.