The Market Analysis section is the macro context for the deal: submarket trends, supply pipeline, demand drivers, and rent trajectory. It's complementary to Comps (which is the micro view) and Area Stats (which is the demographic view).
What's on this card
- Submarket name and boundary description.
- Supply pipeline — units (or SF) under construction, permitted, planned, with delivery dates.
- Net absorption — recent quarters' net leased inventory.
- Rent trajectory — submarket-level rent index over the past 24–36 months.
- Vacancy trajectory — submarket vacancy rate over time.
- Cap rate trend — submarket cap rate movement, where derivable from comps.
- Demand drivers — major employers, in-migration patterns, household formation.
Where the data comes from
Market Analysis pulls from a mix of public economic data (BLS, Census, DOL) and aggregated listing platform data. Submarket boundaries are MSA-or-finer where coverage exists.
How it flows into the pro-forma
The submarket rent trajectory is one of the inputs to the rent growth assumption in the pro-forma. If your submarket has been growing at 4% YoY for three years and the supply pipeline is moderate, Relm's default assumption may be 3% Year 1 rent growth (with a small drag from incoming supply). You can override this in the pro-forma assumptions.
Similarly, vacancy trajectory and net absorption inform the vacancy assumption.
Caveats
- Submarket boundaries are imperfect. A property right on the edge of two submarkets may not behave like either; use judgment.
- Supply pipeline data is best for major metros and gets thin in tertiary markets. If the pipeline section says "no recent permits" in a tertiary market, that may reflect data gaps as much as actual market conditions.
- Recent shocks (a major employer moving in or out, a flood, a regulatory change) take time to filter into aggregated data. Cross-check with local broker conversations on big-stakes deals.
Editing
You can pin or reject specific data points (e.g. a permit that's been canceled but is still in the public record). The AI Summary will respect those overrides.