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Letting equations decide the success of a project

Language: English Series: EuroProperty ; May 2006, 27(1)Publication details: 2006Subject(s): Summary: A new formula has been introduced to help measure the rate at which net space is taken in a scheme in relation to a wider market performance. The Walton Absorption Factor equation is designed to make it easier to analyse the year-on-year impact of new gross space on the market and any changes in the benchmark universe, through simple analyses of numerator and denominator composition. The numerator is a specific project's net absorption space, and thus the project's specific risk. The denominator measures the market risk, and is the net absorption pace benchmark provided by the market.

A new formula has been introduced to help measure the rate at which net space is taken in a scheme in relation to a wider market performance. The Walton Absorption Factor equation is designed to make it easier to analyse the year-on-year impact of new gross space on the market and any changes in the benchmark universe, through simple analyses of numerator and denominator composition. The numerator is a specific project's net absorption space, and thus the project's specific risk. The denominator measures the market risk, and is the net absorption pace benchmark provided by the market.