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The Market for Office Uses & the Competitive Position of the State Farm Property
Client: Red Seal Development Corporation
Gruen Gruen + Associates (“GG+A”) conducted a market research and analysis to reach a judgement on whether investment office space can be feasibly developed given present and forecast future market conditions and the competitive position of the State Farm site located at South Lake Cook Road and Pine Street in Deerfield, Illinois.GG+A conducted field research and interviews with real estate brokers, office space developers and office building owners to gain information and insights needed to define the primary market area and to identify: (a) the likely origins and types of prospective users; (b) the alternative locations prospective users will consider; (c) the relative advantages and disadvantages of the site as an office location; and (d) office space rents.
GG+A studied supply conditions in the primary market area and identified the property’s position within the primary market area. GG+A also forecast the demand for office space in the primary market area by (a) analyzing historic and forecast trends by economic sector; (b) forecasting market area employment growth by economic sector; (c) using GG+A’s SPACEWALK™ model to covert the forecast employment growth into estimates of future office space building demand in the market area; and (d) comparing the estimated market area supply to forecast market area demand.
GG+A then synthesized the demand and supply information to reach conclusions about the potential for the development of office space at the State Farm site to feasibly capture demand. A GG+A principal testified about the findings before the Deerfield Plan Commission and the Village Board. The Plan Commission approved the developer’s request for a zoning change from office to residential use.