Case Study of 1 N Main St, Rochester, NH

When it comes to leasing retail space, understanding the demographics of an area is essential. Demographic factors, such as population size, income, age, and education level can all play a significant role in determining the leasing potential of a retail space. Rochester, New Hampshire, for example, is a growing community with a population of over 31,000 and as with any growing community, the retail space in the area is in demand and the leasing potential is high. There are several factors to considered, however, when determining the leasing potential of a retail space, so that it’s possible to narrow down the highest and best use for each given location. In this blog post, we’ll explore how these factors can impact the leasing potential of retail space in a specific area. 

Analyzing Shopping Trends

Our team is always looking at new software that can assist with commercial real estate, and the latest addition to our team’s toolbox is Placer AI. Placer AI is extremely helpful for retail properties because its location analytics provide high level access to visit trends, trade areas, and demographics. This means Placer AI uses a combination of location-based data collected from smartphones of visitors and machine learning algorithms to analyze foot traffic patterns and consumer behavior in real-time. With this, our team now has access to visit frequency, visit duration, popular times, and even the types of stores that visitors frequent before and after visiting a particular location. By understanding foot traffic patterns and consumer behavior, we can determine which types of businesses would be most successful in a given location. 

We’ve found that the data Placer AI collects to be essential for determining leasing potential because it provides retailers and property owners with detailed and accurate insights into consumer behavior in a given area. By leveraging Placer AI data, retailers and property owners can make informed decisions about where to lease retail space and which locations would be the most suitable for their business.

What Retailers Want

Usually retailers want to lease space in areas with a large population because this can translate to a larger potential customer base. They also prefer to lease space in areas with a higher median household income, since this can indicate a higher level of disposable income among residents. We encourage our retail clients, however, to review and consider visit trends because an increase or decrease in the number of visitors can signal a change in the potential leasing market and therefore predict changes coming. This can make for better, educated decisions. 

Finally, a thorough understanding of the trade area, when assessing leasing potential, also creates better decisions. Trade Area includes understanding the demographics of the local population, the types of businesses that are already established in the area, and the competitive landscape. This can help retailers determine whether their business would be a good fit for the location and whether there is a demand for their products or services. Overall, understanding the trade area is essential for businesses and property owners who want to attract and retain customers and optimize the leasing potential of retail space.

Void Analysis

Another Place AI tool, in addition to basic demographic numbers and trends, is a Void Analysis. A Void Analysis uses a combination of location-based data and machine learning algorithms to analyze foot traffic patterns and consumer behavior in real-time. This analysis includes information on visit frequency, visit duration, popular times, and even the types of stores that visitors frequent before and after visiting a particular location.

By analyzing this data, we can identify areas where there is a high demand for certain types of businesses, but a low supply of the product/service. This information can be used to determine where to lease retail space and which types of businesses would be most successful in a given location. For example, in the graphic above, 1 N Main St, Rochester would be a great location for a gym – specifically a Workout Anytime location, since there is not one nearby.

Conclusion

In conclusion, demographic factors play a significant role in determining the leasing potential of retail space in a given area. The real-time data Placer AI provides access to is essential for determining the leasing potential of retail space because it provides detailed and accurate insights into foot traffic patterns and consumer behavior in a given area. By leveraging this data, retailers and property owners can make informed decisions about where to lease retail space and optimize their properties for maximum profitability. 

If you’re interested in learning more about our Placer AI data insights for your location and understand how our tools can be of value with your commercial real estate, we encourage you to reach out to us today. Our friendly team is ready to answer any questions you may have and provide you with the insights you need to make informed decisions. We look forward to hearing from you soon!

– Viktoria Alkova, Dave Garvey, & Ethan Ash