You might believe that all it takes to find a new build to suit an opportunity in real estate is a quick CoStar search. There is, however, much more to understand about the site selection process for a more practical and strategic approach.
The world’s most valuable resource, according to The Economist, was oil. It’s now data. It is also true for the site selection process.
So, here are some data-driven steps to take when looking to expand your footprint and find the best location for your business.
Employ a geographic filtering method
In a world where technology is constantly improving, it only makes sense that the method of finding your ideal site has also advanced. As a result, you ought to use an advanced geographic filtering procedure based on the project criteria. It will impact your decision, including tax incentives and high-competition areas.
When you align the filtering model with your criteria, you should get relevant data for variables like population demographics, unemployment rates, cost of living, utility costs, wages, tax rates, and more.
*Tip: By centralizing data for each project in its collaborative portal, a commercial real estate platform like DealforceCRE can streamline the process of sharing data.
Conduct a more thorough location analysis.
The site selection team should analyze once your long list has been reduced to 5-10 candidate locations. This research should detail each location’s workforce, infrastructure, logistics, business climate, economic incentives, and real estate market analysis.
Location analytics is the quantification of a location to obtain a crucial perspective of a property’s surroundings and to ensure the correct data for a well-informed decision.
This step’s data research includes primary research and a more detailed demographics report. The findings should cover local education levels, historical unemployment rates, competitor sizes, and locations; wages; employment-related variables; recent expansions and closures; logistics costs, customer accessibility, and other data to help you achieve your business goals.
Think about a seasoned site selection team
Joining forces with a team that is up to date on the latest data-driven site selection methods, such as a preferred developer of national tenants, will boost your confidence in finding the winner. This stage of development necessitates extensive analysis, so make sure you ask these questions during the site selection process.
According to Deloitte, “location, location, location” has given way to “location, experience, analytics.” Working with a developer’s site selection team will help you add the word “experience” to the new mantra.
In addition, by employing a weighted model, the team should be well-equipped. Each potential location will be ranked based on qualitative and quantitative factors such as labor market scalability, workforce demographics, cost of living, operating costs, etc.
When it comes to the retail industry, which is constantly changing, using data-driven systems to increase your footprint strategically is the most important decision you can make early on.
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