Real estate purchases can be expensive and risky investments; however, they can pay off in the long run if you can identify the most lucrative sites or locations. Location data, specifically foot traffic, can empower realtors during the site selection process.
Foot traffic data helps realtors mitigate risk when selecting the right property for their clients. By referencing consumer traffic information, real estate companies gain actionable insights that can guide their decision-making processes.
Foot traffic provides valuable information such as:
- The number of people visiting or walking near the site for a designated period
- The duration of their stay, also known as “dwell time”
- The frequency of site visits
- The most popular times and days for visits
Use Foot Traffic to Inform Site Selection
Foot traffic data provides privacy-friendly visibility into where consumers are going in the real world. A location intelligence company, like Gravy Analytics, collects location data based on pseudonymous mobile device signals. Gravy Analytics cleanses and verifies our data to ensure its quality and accuracy. This ensures the highest quality data for site selection.
Foot traffic is invaluable when comparing different locations because traffic spikes can vary tremendously depending on the time-of-day, day-of-week, and season. One of the most beneficial uses of foot traffic data is to identify where consumers go within a certain area. These areas are where sites have the greatest potential to stay relevant and profitable.
Benefits of Foot Traffic Data
Here are three ways foot traffic data can benefit real estate site selection:
1. IDENTIFY SITES WITH LONG-TERM BENEFITS
Real estate site selection is an expensive commitment and one that can prove costly if the wrong location is chosen. Proper preparation and research can be the difference between making a sound investment and a risky one. Foot traffic can fill in the information gaps you may have.
It’s important to think long term instead of making site selection decisions or planning based solely on current trends. This involves analyzing location data to look for shifts in interest and behaviors. Every area or community will experience some form of social or business shift, which will likely impact real estate pricing and consumer activity, and compiled foot traffic data with benchmarks on consumer activity can act as a compass to show what’s to come.
2. UNDERSTAND CONSUMER BEHAVIOR
For site selection to be successful, it is important to understand the consumers who visit the area. Your clients will require insight into the preferences and habits of those potential customers before they are ready to close on a property.
Foot traffic helps with consumer market research. For example, a realtor can learn the preferences and habits of consumers who frequent a shopping center and learn what similarities and preferences they have in common. The realtors can also compare spending habits and foot traffic movement to understand which people are most likely to visit a particular site and are more inclined to make a purchase. This allows the realtor to determine if the site is a good fit for a client’s business. This information can be passed over to the tenant prospect to encourage them to purchase or lease the site.
3. GAIN COMPETITIVE INSIGHT
Location data is key for a thorough market analysis of all potential sites. Realtors can compare sites against each other to determine which one has the most profitability potential or foot traffic. Locations with too much competitor saturation may be hard to break into and can diminish revenues. Competitive marketing intelligence can put your real estate company ahead of the curve. Location data can help realtors capitalize on opportunities and potential long-term investments before your competitors do.
Get Quality Foot Traffic Data
With Gravy’s high-quality location data, realtors can go beyond demographic data for their real estate market analyses. Foot traffic data allows realtors to find sites with long-term benefits, gain competitive insights, and understand consumer behavior. This increases a realtor’s chances of finding the best site for their client’s business.