THE PROPERTY MANAGER AS ECONOMIST-PLANNER After graduating from college with honors and a master's degree in eco- nomics, Charles Gill was hired by the local urban renewal authority in his home town of approximately 500,000 people. His responsibilities were in the areas of statistics, financial planning, and research. When activities of the urban renewal authority began to wind down upon completion of a major downtown redevelopment project, one of the directors, a businessman who had acquired some real estate investment property, hired Charles to manage one of his residential rental properties. The area's economy had slowed with the general downturn that occurred throughout the country and severely depressed the price of real estate in many areas, including property in Charles's town. In addition, a local defense factory had closed, leaving hundreds out of work. Charles saw there were suddenly many properties available that were priced far less than they had sold for just a few years before. Charles also saw that although the rental market was not booming, tenants were shifting where they could to buildings with lower rent. 1. Why is it important for Charles to note the area's economy when preparing a management plan for his new employer? 2. What does the shutdown of the local defense factory mean for Charles and the property he manages? 3. What does the decrease in local property values mean for Charles and the property he manages?
THE PROPERTY MANAGER AS ECONOMIST-PLANNER After graduating from college with honors and a master's degree in eco- nomics, Charles Gill was hired by the local urban renewal authority in his home town of approximately 500,000 people. His responsibilities were in the areas of statistics, financial planning, and research. When activities of the urban renewal authority began to wind down upon completion of a major downtown redevelopment project, one of the directors, a businessman who had acquired some real estate investment property, hired Charles to manage one of his residential rental properties. The area's economy had slowed with the general downturn that occurred throughout the country and severely depressed the price of real estate in many areas, including property in Charles's town. In addition, a local defense factory had closed, leaving hundreds out of work. Charles saw there were suddenly many properties available that were priced far less than they had sold for just a few years before. Charles also saw that although the rental market was not booming, tenants were shifting where they could to buildings with lower rent. 1. Why is it important for Charles to note the area's economy when preparing a management plan for his new employer? 2. What does the shutdown of the local defense factory mean for Charles and the property he manages? 3. What does the decrease in local property values mean for Charles and the property he manages?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:■CASE STUDY
THE PROPERTY MANAGER AS ECONOMIST-PLANNER
After graduating from college with honors and a master's degree in eco-
nomics, Charles Gill was hired by the local urban renewal authority in his
home town of approximately 500,000 people. His responsibilities were in the
areas of statistics, financial planning, and research. When activities of the
urban renewal authority began to wind down upon completion of a major
downtown redevelopment project, one of the directors, a businessman who
had acquired some real estate investment property, hired Charles to manage
one of his residential rental properties.
The area's economy had slowed with the general downturn that occurred
throughout the country and severely depressed the price of real estate in
many areas, including property in Charles's town. In addition, a local defense
factory had closed, leaving hundreds out of work. Charles saw there were
suddenly many properties available that were priced far less than they had
sold for just a few years before. Charles also saw that although the rental
market was not booming, tenants were shifting where they could to buildings
with lower rent.
1. Why is it important for Charles to note the area's economy when
preparing a management plan for his new employer?
2.
What does the shutdown of the local defense factory mean for
Charles and the property he manages?
3.
What does the decrease in local property values mean for Charles
and the property he manages?
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