Market Analysis for Shopping CentersTerms and DefinitionsSlide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Building TermsSlide 17Types of GoodsTrade Area TermsPrimary Trade AreaSecondary Trade AreaTertiary Trade AreaUnique caveatsMarket Analysis ProcessStep 1: Define the Product (Property Productivity Analysis)Slide 26Step 2: Define users of the Property and Trade Area (Market Delineation)Step 3: Forecast Demand FactorsStep 3: Forecast Demand Factors, con’tStep 4: Inventory and Forecast Competitive SupplyStep 5: Analyze the Interaction of Supply and DemandStep 6: Forecast Subject CaptureSlide 33Slide 34Slide 35Slide 36Slide 37Slide 38Slide 39Slide 40Slide 41Slide 42Slide 43Slide 44Slide 45Slide 46Slide 47Slide 48Slide 49So That’s Market Analysis for Shopping Centers1Market Analysis for Shopping CentersMarket Analysis for Shopping CentersThe Subject and its LocationThe Subject and its LocationWayne Foss, DBA, MAI, CRE, FRICSFoss Consulting GroupEmail: [email protected] and DefinitionsTerms and DefinitionsShopping Center -Shopping Center -A tract of land, under individual or joint real A tract of land, under individual or joint real estate ownership or control, improved with a estate ownership or control, improved with a coordinated group of retail buildings with a coordinated group of retail buildings with a variety of stores and free parking.variety of stores and free parking.Types -Types -Neighborhood, Community, Regional, Neighborhood, Community, Regional, Specialty or theme center, highway related, Specialty or theme center, highway related, strip commercialstrip commercial3Terms and DefinitionsTerms and DefinitionsNeighborhoodNeighborhoodTypical tenants - Convenience goodsTypical tenants - Convenience goodsGrocery, Drug, Personal ServicesGrocery, Drug, Personal ServicesTypical Size and Trade AreaTypical Size and Trade Area30,000 to 100,000 square feet gross leasable 30,000 to 100,000 square feet gross leasable areaarea4 to 10 acres of land4 to 10 acres of land5,000 to 40,000 population, 5 to 6 minute 5,000 to 40,000 population, 5 to 6 minute driving time; 1 to 1.5 mile primary trade areadriving time; 1 to 1.5 mile primary trade area4Terms and DefinitionsTerms and DefinitionsCommunityCommunityTypical tenants - Convenience goodsTypical tenants - Convenience goodsJunior department store or discount store, variety Junior department store or discount store, variety store, home improvement centerstore, home improvement centerTypical Size and Trade AreaTypical Size and Trade Area100,000 to 300,000 square feet gross leasable 100,000 to 300,000 square feet gross leasable areaarea10 to 30 acres of land10 to 30 acres of land40,000 to 150,000 population, wide variation in 40,000 to 150,000 population, wide variation in travel time & trade area; 3 to 5 mile primary trade travel time & trade area; 3 to 5 mile primary trade areaarea5Terms and DefinitionsTerms and DefinitionsRegionalRegionalTypical tenants - General MerchandiseTypical tenants - General Merchandiseat least one full-line department storeat least one full-line department storeshopper goodsshopper goodsTypical Size and Trade AreaTypical Size and Trade Area300,000 to 1,000,000 square feet gross leasable area300,000 to 1,000,000 square feet gross leasable area30 acres (or more) of land30 acres (or more) of land150,000 to 400,000 population, 15 to 30 minute 150,000 to 400,000 population, 15 to 30 minute travel time; 10 to 15 mile primary trade areatravel time; 10 to 15 mile primary trade area6Terms and DefinitionsTerms and DefinitionsSpecialty or Theme CenterSpecialty or Theme CenterTypical tenants -Typical tenants -fashion goods, handicrafts, gourmet foodsfashion goods, handicrafts, gourmet foodsTypical Size and Trade AreaTypical Size and Trade Areasame size range as neighborhood or community same size range as neighborhood or community centerscentersmay resemble a regional center - 10-15 mile primary may resemble a regional center - 10-15 mile primary trade area, 15 to 30 minute driving timetrade area, 15 to 30 minute driving time7Terms and DefinitionsTerms and DefinitionsHighway relatedHighway relatedprimarily serve passing motoristsprimarily serve passing motoristsmotels, restaurants, truck stopsmotels, restaurants, truck stopsStrip CommercialStrip Commercialsingle business along major streetssingle business along major streetsserve the community or neighborhoodserve the community or neighborhoodmay include highway-related usesmay include highway-related usesconvenience stores, fast-food restaurantsconvenience stores, fast-food restaurants8910111213141516Building TermsBuilding TermsGross Leasable Area (GLA)Gross Leasable Area (GLA)The total floor area rented to tenants. It can include The total floor area rented to tenants. It can include basements and mezzanines. Rent is paid according to basements and mezzanines. Rent is paid according to the GLA occupied, measured from the outside wall the GLA occupied, measured from the outside wall surface to the center of interior partitions.surface to the center of interior partitions.Gross Floor Area (GFA)Gross Floor Area (GFA)GLA plus all common areasGLA plus all common areasGross Sales Area (GSA)Gross Sales Area (GSA)GLA less storage and work areas.GLA less storage and work areas.17Building TermsBuilding TermsCommon AreasCommon AreasMallways, parking, and other areas available to all Mallways, parking, and other areas available to all center customers; not part of GLAcenter customers; not part of GLAParking AreaParking AreaIncludes parking surface, aisles, stalls, islandsIncludes parking surface, aisles, stalls, islandsParking RatioParking RatioParking area to GFA or GLAParking area to GFA or GLAParking IndexParking Indexnumber of spaces per 1,000 sf of GLAnumber of spaces per 1,000 sf of GLA18Types of GoodsTypes of GoodsConvenience GoodsConvenience GoodsGroceries, drugs, personal servicesGroceries, drugs, personal servicesSpecialty GoodsSpecialty Goodsinfrequent purchases, involves some comparison infrequent purchases, involves some comparison shoppingshoppingShopping GoodsShopping Goodshard goods and fashion goods, involves comparison hard goods and fashion goods, involves comparison shopping, usually large-ticket itemsshopping, usually