Submarkets are boundaries that define where a property competes. Having specialized knowledge at the sub-market level is a significant strategic advantage over your competitors. What defines a sub-market is:
* An area with similar properties in terms of physical stock and rents
* An area that reflects patterns of locational preference
* Transportation patterns, natural barriers
* The location of competitive properties
* Profiles of residents and workforce
Some things we know to our core, right? The effect of vacancy on revenue; that crime in a neighborhood will eventually impact the reputation of our assets; that a bad loan will be front and center at the absolute worst time in the business cycle.
Read more...Multifamily Demographics: A Clinical Definition of a Submarket | Multifamily Insight Blog