Winter 1977, Vol 2, No 2
Abstract: The author asserts that a major refocus of emphasis in the investment analysis and appraisal process must take place if improved investment results and therefore, investor confidence in real estate is to be achieved. Specifically, he claims that too many investments are premised upon deficient economic analysis, characterized more by superficial presentation of a “best case” optimistic outcome – and advocacy assertion unsupported by analysis or disclosure of substantiating evidence – than by the preferred approach that embraces a commitment to investor-oriented disclosure of probable investment results. Reasons for the deficient economic analysis are listed, including the fact that too many participants in the real estate sector have a false impression of their abilities as investment economists and may decline to commit sufficient resources for a useful analysis. The author develops his approach, a material departure from traditional practice, and promises the likelihood of superior economic analysis.