As a landlord, you work to ensure that the physical characteristics of your property check all the boxes; it is well-maintained, has good visibility, adequate and well-paved parking, clean landscaping and plenty of curb appeal. Yet, tenants with proven business models have struggled to succeed at your location. Both vacancy and unforeseen tenant turnover can significantly affect the profitability of your asset. You can’t quite figure out what seems to be missing. Why? What is happening?
As a retail or restaurant owner, you have worked hard to understand your customers and develop a loyal following. Now, you are in the process of expanding your footprint, giving considerable thought to determining what neighborhood and location you wanted to target. You have signed a lease in well-appointed space, but well after opening your new location, it is struggling to achieve the level of traffic and profitability that you had planned for, and you are beginning to wonder why? What has happened?
For both landlords and tenants, there are subtle submarket dynamics that create hurdles to economic success. Often landlords are not adequately paired with ideal tenants for their location and vice versa. There is a disconnect between the characteristic strengths of the location and the market attributes necessary for the tenant’s success. The disconnect might be driven by something obvious such as weak traffic counts or proximity of strong competitors. But it might also be driven by something less observable. These semantic market dynamics can be borne out and better understood via discrete data analysis during the site selection process. Without them, both landlords and tenants could be facing real headwinds to success.
At IdealSpot, we live and breathe data science. By looking across all locations/assets, we can tease out the correlated behavioral patterns that persist across all our data sets. This establishes a success archetype that defines success for any business model. This archetype can then be applied to any geographical region throughout the US to identify highly attractive opportunities for acquisition or expansion efforts. This process utilizes a combination of our in-house data scientists and our on-demand platform.
- Conduct a correlation study of all locations to tease out the success archetype and key performance indicators.
- Upload the KPIs to our web-based platform to establish a watermark for comparing all locations and expansion regions.
- Utilize the IdealSpot platform to make incisive, data-backed decisions on the identification and selection of sites with high probabilities for success.