Real Estate Metrics

Demand Forecasting and Financial Measurement

  • Metrics are an important means to diagnose current and future real estate issues.
  • Metrics are used for the following purposes:
    1. Economy Measures: These ratios measure the relation of real estate’s contribution to the economy of the business. Such measurements as real estate to sales, profit, or overhead show the overall costs of the real estate strategy.
    2. Efficiency Measures: Efficiency measurements show if the company is making the best use of its resources. These ratios show efficient use of capital, the use of the property, and how effective the building is to its productive mission.
    3. Effectiveness Measures: This measurement shows how productive real estate is to the company’s production goals. The reliability, suitability and functionality of the property can be judged with these ratios.
    4. Efficacy Measures: Efficacy measures if the company is receiving desired results from its property. It measures how relevant property is to the company mission by examining real estate returns, profitability, and satisfaction.
  • These measurements are also frequently used for forecasting and gauging the use of property.
  • Companies can judge company performance by examining these ratios or other ratios that may be more pertinent to the enterprise.
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