GAP is used in market analysis to uncover potential commercial real estate opportunities. A gap exists when demand exceeds supply (undersupply) or supply exceeds demand (oversupply). An example would be a city where a large employer is closing (or arriving) and there is an excess (or shortage) of fast food restaurants, strip centers, etc. If you were a builder, knowing there is a potential gap either way, gap analysis could help determine if you should not build or build. Gap analysis is done using some sort of unit measure. Office for example, uses square foot per employee for demand units and square footage for the supply unit. Gap analysis is merely trying to identify where an imbalance (gap) exists between supply and demand.
May 18, 2009