Ten key elements of economics

All of economics rests on one simple principle: Understanding incentives is an extremely powerful tool for understanding why people do the things they do because the impact of incentives can be seen on almost every level, from simple family decision making to securities markets and international trade. In fact, markets themselves work because both buyers and sellers change their behavior when incentives change.

Ten key elements of economics

Likewise, commercial properties need a business plan, because at its heart, every investment property is a business. The common goals of every business venture are to increase cash flow and grow value. Lenders want to know if the commercial real estate borrower has a plan to achieve these objectives and to manage the investment through difficult challenges, if necessary.

The executive summary should be a compelling statement on how the borrower will grow the revenue and enhance the value of the property.

It should include the strategy for positioning the property to compete in the market, capitalize on opportunities, and solve existing or anticipated problems. Macro- and micro-market analysis: Properties do not operate in a vacuum.

What are the economic and social trends in the region, and how could they affect the property? Also consider micro markets — aka a neighborhood for apartments and trade area for shopping centers.

Review components of the building — everything from curb appeal to the mechanical systems. These features can affect the marketing and leasing of the building. A review of the property also is needed to develop the operating budget and leasing projections.

Photos of the building along with a list of major maintenance and capital improvements needed in the next five years are an important component of the five-year financial projections.

Explore opportunities to upgrade the tenant mix of a commercial building by leasing to national tenants. Are demographics changing and creating a need for a different mix of apartment units?

A lease-renewal strategy should be developed, with comments on each commercial tenant, including payment history. This analysis provides the property owner with valuable market data to determine the correct rental rates for each unit or space in the building.

Marketing and leasing plan: How will the property be positioned in the market? Should it be repositioned? Who will lease the building? What marketing materials and advertising will be developed? What are the projected rents for each unit in a residential property and each space in a commercial property?

What are the lease-up projections? How much tenant allowance is available for commercial tenants? The business terms of the leasing agreement with any commercial real estate brokerage companies should be included. Describe how the property will be managed and operated, including on-site and off-site management teams.

Ten key elements of economics

Provide the basic terms of the property-management agreement.Analyze, compare, contrast, and evaluate these areas of economics in terms of their key assumptions, concepts, and potential applications to law: neoclassical economics, behavioral economics, and happiness economics. 10 Key Values These Ten Key Values serve as the philosophical foundation for political action for Green parties worldwide, each of which adapts and defines them according to the needs of their national, regional, and local chapters.

10 key business trends for GI physicians and centers in & beyond economic espionage — 6 insights; into a larger practice and surrendering some degree of autonomy in favor of being able to provide for the four key elements of success," said Mr.

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10 Key Values

Common Sense Economics What Everyone Should Know About Wealth & Prosperity by James Gwartney, Richard Stroup, and Dwight Lee 10 Key Elements of Economics Comm Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

Ten key principles for integration I. Comprehensive Services across the Continuum of Care One principle of integrated health systems is the comprehensive scope of clinical and health-related services covered.

Sep 13,  · 6. Political and economic risk. Sometimes founders are just in the wrong place at the wrong time. Recessions are a tough time to sell luxury goods.

10 Key Elements of a Good Business Plan