Mid-sized Real Estate Investment Firm with 100 shopping center properties

CRE Trends  |  Commercial Real Estate

The Challenge

A mid-sized real estate investment firm owns and operates 100 shopping center properties. These properties are adjacent to major big box retail stores.  Their worst nightmare would be a surprise closure of one of these adjacent anchor stores, which are the primary source of traffic for their centers.  In the recently volatile brick and mortar retail environment, this scenario is unfortunately increasingly likely.

In addition to reducing downside risk from possible store closings, this customer was looking for store-level retail traffic data to use for idea generation and due diligence for new property acquisitions, and to support and justify rent increases with current or prospective tenants. The customer was already using data from mobile phones/apps for traffic measurement, but found it while it was useful for broader trends, it was not accurate or predictive of individual store and shopping center performance.

The Solution

The customer was immediately able to begin using RS Metrics CRE Trends to look up the anchor stores adjacent to their shopping centers, and run analysis within the app, and download data for use within their existing internal models.

CRE Trends is a web app that provides satellite-imagery based traffic data, trends, and analysis for 100,000+ individual commercial real estate properties such as malls, shopping centers, stand-alone retail locations, and office and industrial parks, based on changes in daily, weekly, monthly, and year-over-year parking lot traffic growth. CRE Trends also allows users to compare and benchmark property trends against competitors and other relevant local, state, regional, and national properties, and create groups by property type, ticker, owner, etc. Users can create favorites lists of selected properties, automatically generate alerts and signals for each property by identifying periods of significant change, and generate shareable PDF report summaries for selected properties and competitors.

The customer was now able to rank their adjacent anchor stores by year-over-year traffic growth (which correlates highly to store revenue), by US region, to identify the lowest performing stores that are most likely to be closed. They also set alerts to indicate when “at risk” locations have significant changes in traffic growth. For further predictive insights and signals, the customer was able to create “head to head” groups of their adjacent anchor stores versus 1-3 nearby direct competitors in order to track ongoing trends in store-level competitive market share. After 6 months of integrating CRE Trends into their process, the customer has greatly reduced their exposure and risk from surprise store closures, and has used CRE Trends to strengthen its property acquisition ideation, strategy, and due diligence.