Data
Refers to information collected and presented in a form that facilitates processing and
analysis.
Data dispersion
The amount or degree to which data points in a series are spread or dispersed about their
mean (also referred to as variation about the mean).
Debt-coverage ratio (DCR)
Ratio of net operating income to annual debt service. Expressed as net operating income
divided by annual debt service.
Demand
The volume or quantity of a product or service purchased, or willing to be purchased, in
relation to price.
Demand factors
Elements or forces that influence the demand for goods and services in a given market
area.
Demographics
Characteristics of human populations as defined by population size and density of regions,
population growth rates, migration, vital statistics, and their effect on socio-economic
conditions.
Depreciation
The loss of utility and value of a property.
Desktop GIS
GIS software programs that support a wide variety of functions, queries, and mapping
capabilities for personal computer-based applications, geared toward visual presentation
and descriptive analyses of geo-coded data.
Differential cash flow
The difference that results when the cash flows from one alternative are subtracted from the
cash flows from another alternative.
Direct survey method
The use of personal interviews with key personnel in all major firms within a given
community to determine the percentage of a firm’s revenues obtained from sales made
outside the local economy for the purpose of estimating firm-specific basic employment and,
by aggregation, the total basic employment in that community; a method that is known to
be costly and time consuming.
Disaggregating demand
The process of separating and identifying the various forces and factors which affect the
demand for a given property type in a given market or the differentiation of demand by
category (in reference to tenure, household income, and geographic submarket).
Disaggregating supply
The process of separating and identifying the various forces and factors which affect the
supply of a given property type in a given market or the differentiation of supply by
category (including leased versus owned, unit type, price, and geographic submarket).
Discount rate
The percentage rate at which money or cash flows are discounted. The discount rate
reflects both the market risk-free rate of interest and a risk premium. Also see opportunity
cost.
Discounted effective rent
The cash flows over the term of the lease, discounted to the present value.
Discounting
The process of reducing the value of money received in the future to reflect the opportunity
cost of waiting to receive the money.
Displaced sales
Sales that result from purchases made by customers who are not located in the subject
service area (represents a revenue gain for retail establishments as sales are generated
from consumers who reside outside the local trade area).
Diversification
A method of reducing risk by investing in unrelated (uncorrelated) assets.
Drain information
Information (substantiated and rumored) regarding inventory that is to be removed from
the market by the forecast period.
Drive-time approach
An approach to estimating the trade area (and sales/revenue potential) for a given retail
establishment or center based on the central place theory concept of range and how far
people are willing to travel to obtain retail goods as defined by drive time or mileage.
Due diligence
The process of examining a property, related documents, and procedures conducted by or
for the potential lender or purchaser to reduce risk. Applying a consistent standard of
inspection and investigation one can determine if the actual conditions do or do not reflect
the information as represented.
Dynamic system
A complex and ever-changing or evolving set of diverse and interrelated entities and agents
which are organized into a coherent and working totality which serves multiple and/or
common purposes or objectives. Also see system and market dynamics.