Glossary of Terms

General Market Factors 2015-11-11 08:00:00

General Market Factors

General market factors refers to the overall conditions within a defined market that affect all properties within that market. These factors are influenced by the demographic, economic, and locational characteristics of a market. General market factors change over time with demographic patterns, economic and business cycles, employments trends and government policies, amongst other factors. As an example, rising unemployment in a region could cause office rental rates to decrease and tenant defaults to increase throughout that region. This differs from a property-specific factor such as a particular tenant declaring bankruptcy and thus defaulting on his or her lease.

 


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