Draper and Kramer has a full-time Research and Analysis Department. It is staffed by a director and five analysts who are well versed in economics, statistics, demographics and finance. These professionals apply a wide array of disciplines and techniques to analyze and evaluate prospective real estate investments and to identify broad market trends.
We do this on behalf of the clients and lenders that Draper and Kramer represents, as well as when the company is considering investments for its own account. A fully informed investment decision is our goal. To achieve this end, we use:
- Regional Economic Analysis – A property’s success is closely linked to the strength and growth of its region. Good regional analysis requires much more than a list of “top 10 employers.”
- Demographic Analysis – Is the population rich or poor? Young or old? College or high school educated? Married or single? What changes have occurred in the last 10 or 20 years? What are the implications for the different property types?
- Statistical Analysis and Modeling – Several variables work simultaneously to influence pricing and occupancy in a real estate market. Multivariate statistical methods allow us to estimate the individual influence of each variable. The estimates lead to predictions and forecasts – and an indication of how confident we can be about them. We work hard to make our analyses as objective as possible and free of external agendas.
- Lease Analysis – Lease provisions are distilled into a succinct and understandable abstract. The process identifies “red flags” in the lease terms. The abstract also helps us to compare the lease’s “economics” with what is current in the market.
- Financial Analysis – We use standard financial analytical methods to assess a tenant’s credit and to forecast and value a property’s future cash flow.
- Information Management – The R&A Department maintains many data sources – including data bases on the Internet, traditional print publications, and “field informants.” A knowledge management system designed for the R&A Department by a library consulting firm makes information gained in one assignment readily available for future ones.
Learn More
McKim Barnes
Vice President – Research and Analysis
312-580-6652
barnesk@draperandkramer.com
Draper and Kramer: A Tradition of Innovation in Real Estate Services for Over 110 years
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