Site Selection Analytics for Property Development
September 22, 2021
Selecting the right site for development can be an expensive and risky investment; however, it can pay off in the long run if developers use data to identify the most suitable location. By analyzing foot traffic during the site selection process, developers can 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
Foot Traffic Data for Site Selection Analysis
Foot traffic data provides privacy-friendly visibility into where consumers are going in the real world. One of the most common uses of consumer foot traffic data is to identify business activity within a certain area over a period of time. Here are three ways foot traffic data can be used by property developers for site selection analytics.
1. Identify Sites with Long-Term Benefits
Property development 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 left by other types of data sets.
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 data can help with consumer market research. For example, a property developer can learn the preferences and habits of consumers who frequent a shopping center and learn what similarities and preferences they have in common. This allows the developer to determine if the site is a good fit. This information can be passed over to potential tenants to encourage them to purchase or lease the site.
3. Gain Competitive Insight
Location intelligence is key for a thorough market analysis of all potential sites. Property developers can compare sites against each other to determine which one has the most profitability potential. Locations with too much competitor saturation may be hard to break into and can diminish revenues. Competitive marketing intelligence can help property developers capitalize on opportunities and potential long-term investments before their competitors do.
Foot Traffic Data for Property Development
Property development companies can go beyond census data for site selection analytics. Foot traffic data allows developers to gain competitive insights, identify sites with long-term benefits, and understand consumer behavior. This increases a property developer’s chances of finding the best site that meets the needs of future residents and visitors.