This is part 1 of our two-part series. Here's part 2.
Whether you work in retail, commercial real estate or operate any business with a storefront, you are likely familiar with the concept of a trade area.
It has been a long time coming, but it’s finally here: the end of 2020 and the strangest and perhaps most difficult year for many in the retail industry.
Throughout our many years in retail real estate research, we’ve heard businesses of all types simplify the assessment of their business’s trade area. So often, we hear economic developers and retailers describe their trade area as a certain-mile radius around a site, but in reality, there are many different ways to delineate a trade area.
In early 2019, SiteSeer made major updates to our flagship software, SiteSeer Professional, including the installation of the latest version of Freeway, a third-party plugin by partner Applied Spatial Technology. Freeway provides the calculations behind the drive-time trade area boundaries you see in SiteSeer.
If you’re a shopping center owner or a marketer for a shopping center, one of the most important investments of your time is to understand what your shoppers and area consumers think about your center.
If your town is large enough to have an economic development council, that council is probably tasked with analyzing your market in order to attract businesses and retailers to the community. To do this effectively, one of the very first steps you should take is to define your town’s trade area.
When you’re opening a new business or expanding an existing one, there are a lot of decisions to make, but perhaps none is more important than choosing the right location. A bad location could mean the difference between success and failure and a mediocre location could mean you’re leaving thousands—or even millions—of dollars on the table every week.
As a developer, property owner, or commercial real estate broker, your goal is to have the lowest vacancy rates in your shopping centers as possible. Sometimes that’s easy, other times not so much. But in the ever-changing retail market, what about when a shopping center loses an anchor tenant that was the main attraction for the entire shopping center? What is the best way to attract a replacement tenant that will prevent smaller retailers in the center from experiencing a significant decline in business or choose to leave?
Retail site selection done right is all about using data to your advantage. If you’ve been largely successful in leasing vacant space, it probably means you have a good process in place to determine what retail and service gaps are missing in a trade area and fill those demands in your shopping center.