Guestimate: How would you estimate the number of commercial properties in a given city?

brainstorming questions case question estimate estimation estimation market sizing guess-estimates market estimation Market sizing
Recent activity on Apr 26, 2019
2 Answers
1.6 k Views
Anonymous A asked on Mar 30, 2019

Would you approach this question from the population or the land size point of view? Or is there a better angle to approach the question

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Serhat
Expert
replied on Apr 26, 2019
BCG | Kellogg MBA |82% Success rate| 450+ case interview| 5+ year consulting | 30+ projects in ~10 countries

I would use the population although it will be very sensitive to many assumptions.
It looks very difficult to make meaningful assumptions in terms of land size.

Cheers
Serhat

Was this answer helpful?
3
Alberto
Expert
replied on Apr 04, 2019
McKinsey Associate | Coached 80+ MBB candidates | INSEAD MBA & CDI MBA

This is an uncommon question, to be honest.
There are a lot of assumptions involved with both the methods you suggest.

Two points from my side:

  1. Using population as sizing driver is extremely dangerous, not only in this case; if you had to choose one of the two, go for the second one (trying to extrapolate as a driver an area that you know well and that is COMPARABLE)
  2. Try to remember by heart some key numbers that could help you in situations like this one (e.g., # of commercial properties in your target Country, # companies in your target Country by size - small/medium/big): worst case scenario, you can use them to cross-check the values you come up with
Was this answer helpful?