Edge Retail Group analyses and evaluates the viability of developing, improve the performance of static centres or expanding a retail shopping centre. The factors involved to determine if the proposed project can be successful. Below are the our key components of our studies:
- Market Analysis
Demographics: Assess the population size, income levels, and spending habits of the local community to ensure there is sufficient demand for retail services.
Competition: We analyse existing shopping centres and retail spaces in the area, including their occupancy rates, tenant mix, and sales performance.
Customer Preferences: Identify customer preferences and trends in the retail market, such as the types of stores and services that are in demand.
- Site Selection & Location Analysis
Visibility & Accessibility: We evaluate the ease of access for pedestrians, public transportation, and vehicles. High traffic areas with good visibility are more attractive to retailers.
- Financial Feasibility
Broad Operational Costs: Include property management, maintenance, utilities, security, and staffing.
Revenue Projections: We forecast rental income from tenants, potential sales revenue (for developer-owned retail), and any additional revenue streams (e.g., parking fees, advertising).
Return on Investment (ROI): Calculate expected returns by comparing projected revenues against the development and operational costs.
- Retail Tenant Mix
Anchor Retailers: Identify large or well-known retailers that can attract foot traffic, such as grocery stores, department stores, or entertainment venues.
Specialty Retailers: Include a mix of smaller, niche retailers that appeal to local preferences or trends.
Balance of Services: Include restaurants, fitness centres, and other service-oriented businesses to diversify offerings and increase customer dwell time.
- Risk Assessment
Market Risks: Include potential downturns in the retail market, economic conditions, or changes in consumer behaviour.
Financial Risks: Evaluate the risks of securing financing or encountering unforeseen operational costs.
- Legal and Regulatory Considerations
Lease Agreements: We review terms and conditions of leasing contracts with potential tenants.
- Competitor Benchmarking
Success Factors: We analyses what makes other shopping centres successful (or unsuccessful) in the same or nearby markets.
Rental Rates & Occupancy Levels: We compare with nearby centre to gauge competitiveness.
Tenant Mix: Study the mix of tenants in successful centres to understand what works in your location.
