1. In the last 18 months, Williamsburg (Brooklyn) has experienced a significant decline in its residential condominium development market. The area suffers from stalled development sites and an apparent lack of buyers at the developers’ original price-per-foot sellout projections.
What could a comprehensive market analysis of the residential market in Williamsburg have told these developers about the likelihood of success for a vast majority of the condominium projects being developed in the area? Your answer should include a discussion of: (15 points)
• Marginal Efficiency of Capital
• Market Potential
• Market Demand Factors
• Market Supply Factors
• Limitations on Exit Strategies