Why Foot Traffic Data Is Vital for CRE Market Research
May 25, 2022
Selecting the right site for commercial development can be an expensive and risky investment; however, it can pay off in the long run if CRE companies use data to research the most suitable location. By enriching foot traffic data with other CRE data sets, commercial real estate companies can gain actionable insights into market trends.
3 Ways to Use Foot Traffic Data for Commercial Real Estate Market Research
One of the most common uses of foot traffic data is to understand business activity within a certain area over a period of time. Here are three ways foot traffic data can be used for commercial real estate research.
1. Understand Consumer Activity
Property development is an expensive commitment and one that can prove costly if the wrong location is chosen. Proper commercial real estate 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 CRE data sets.
It’s important to think long term instead of making site selection decisions based solely on current market trends. Historical data should be taken into consideration. This involves analyzing enterprise location intelligence to understand for changes in consumer interests and behaviors over certain periods of time. 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. Match Clients to the Right Location
For site selection to be successful, it is important to understand the consumers who visit the area. A commercial real estate company’s clients might require insight into the preferences and habits of those potential customers before they are ready to close on a property.
For example, a property developer can analyze foot traffic data at a shopping center near their new site. By understanding what consumers are interested in (ex. bubble tea shops, wholesalers), they can reassure potential tenants that their businesses are a good fit for a particular site.
3. Compare Potential Sites
Location analytics is key for a thorough market analysis of all potential sites. Commercial real estate companies 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 commercial real estate companies capitalize on opportunities and potential long-term investments before their competitors do.
Better Commercial Real Estate Market Research with Foot Traffic Data
With foot traffic data, commercial real estate companies can compare potential sites, match clients to the right location, and understand consumer activity. This increases a CRE company’s chances of finding the best site that meets the needs of future residents and visitors. For more information on using foot traffic data for commercial real estate research, contact our location intelligence experts today.