Week 6 Discussion
Course: BRE 139, Real Estate Economics
Student Name: Hijab 
Today’s Date: 05/24/2024
Textbook Author: Huber, et al.
Chapters 11 & 12
Overview
I reviewed two of the Huber, Messick, and Pivar textbook’s chapters on “Real Estate Economics.” In chapters eleven and twelve, significant material on real estate economics was presented. Farms and land are covered in Chapter 11, and nonresidential real estate is covered in Chapter 12.
Key Concept from Chapter 11
One important key concept I learned from Chapter Eleven was about smaller farms from textbook page 319. There is a high demand for rural land with a home and a few acres for retirement, recreation, or self-sufficiency farming. The economic benefit of dividing huge farms into 40-, 20-, or even 10-acre portions is that it opens up sales to more customers, which raises the price per acre.
Key Concept from Chapter 12
The second important key concept I learned from chapter twelve is about shopping street and this information is located in textbook page 343. High-quality retail districts rely heavily on foot traffic. Harmonious usage is necessary for a shopping street to retain maximum value. The majority of large cities have a main thoroughfare or district. Some of the establishments have widowed fronts and are pedestrian-friendly, such as cafés, boutiques, art galleries, tiny designer stores, etc.
Key Concept from Chapter 11 or 12
The third key concept that I attained is also from chapter twelve regarding flat leases from the textbook page 345. A lease with a set monthly rent payment is called a flat lease. Unless the landlord anticipates higher future rentals, the landlord will often demand an extended lease for particularly desirable space. Generally, rent is stated as a cost per square foot, either monthly or annually, even though the lease technically only specifies a fixed amount for the assigned area. Most of the time, leases are linked to indexes like the Consumer Price Index.
Summary
by Hijab Zaidi
Overall, I enjoyed reading chapters eleven and twelve of this textbook. I think it does an amazing job covering all of the topics. I will revise this information to have more of a good understanding of these two chapters.