Part of working with retail clients is understanding the supply and demand conditions for the markets they are looking to, or should be looking to enter. This type of research is typically referred to as a retail gap analysis and luckily for Realtors®, it’s easier than ever to perform utilizing RPR Commercial.
Step 1: Define your geographical area based on the distance a typical consumer is willing to travel for said retail good either by using custom boundaries created with a drive time and radius tool, or municipal created boundaries like cities or neighborhoods.
Step 2: Choose which version of RPR’s gap analysis tools to use. The first helps you determine where a good location may work for a retail business and the second shows you what retail businesses would fit the needs of an area. click examples to the right to view the full reports.
Click here to view the reports.
What are these reports actually saying?
Gaps are created when retailers are not meeting the demand of consumers based on attributes such as price or product/service quality, so they have to go elsewhere to have those met. The other issue may be that there just aren’t enough retailers in the area to meet the overall demand of the community.
Closing the Gaps
The quickest way to do an assessment for this is to create the geographical boundary that holds the consumer base and run a custom Trade Area Report in RPR. This report combines economic, demographic, tapestry segments and even the retail gap analysis providing the insights to support your clients decisions to lease to a potential tenant, invest in a property, or operate out of a space.
Click here to view source article.