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SITUATION:
A developer believes that, due to substantial office and hotel development
nearby, residential demographics don’t properly reflect the site’s
full retail potential. They need solid research to back up their instincts
and to use as a tool in their leasing efforts.
APPLIED EXPERIENCE:
Using a combination of data sources, ranging from the International Council
of Shopping Centers to the International Association of Convention and
Visitors Bureaus, Speer Consulting, LLC was able to ascertain that the
daytime population spending potential at the development represented three
times that generated by area residents.
OUTCOME:
A report which was posted to the client's website resulted in increased
leasing inquiries and closed lease deals for the project.
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SITUATION:
A land owner is seeking a regional mall development partner. The prospective
partner must be convinced that the market area which would be served by
the mall will support the development program at a sales level sufficient
to meet necessary pro forma rents.
APPLIED EXPERIENCE:
Utilizing years of regional mall feasibility analysis experience gained
at The Hahn Company, Speer Consulting, LLC prepared a study which demonstrated
market support exceeding the necessary threshold set by the prospective
partner.
OUTCOME:
A joint venture partnership was formed to develop the center.
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SITUATION:
A casino developer wants to understand market support for a proposed retail
element of its project. |
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The
questions:
What sales levels are the retailers likely to achieve?
How much rent will they be able to pay?
What additional charges will they be able to afford?
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APPLIED
EXPERIENCE:
Drawing on information gleaned from a wide network of industry contacts,
Speer Consulting, LLC was able to identify casino-based retail property
analogs and profile sales levels and market penetration rates achievable
at the development under review.
OUTCOME:
Targeted rent and occupancy cost charges were established which substantially
exceeded those originally set by a third-party management company.
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SITUATION:
An institutional owner of retail centers needs an independent assessment
of its redevelopment program for a regional mall property. |
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The
question:
Is there adequate market support for a full-blown remodel, or should the
program be downsized?
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APPLIED
EXPERIENCE:
Defining the center’s likely primary trade area based on its regional
access, competitive alignment and declining population
densities in outlying areas, Speer Consulting, LLC was able to establish
that, despite the property’s substandard performance,
it was achieving industry-average market penetration levels which were
unlikely to be increased significantly in the future.
OUTCOME:
A more modest rehab, which emphasized spending on tenant inducements,
entry and interior signage and parking lot improvements, was adopted,
resulting in substantial savings over the anticipated redevelopment budget.
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SITUATION:
A residential builder wants to know if a lifestyle center makes sense for
its masterplanned community development.
APPLIED
EXPERIENCE:
Based on cutting-edge collaborative research sponsored by the International
Council of Shopping Centers, Speer Consulting, LLC was able to define
the proposed center's primary trade area, identify expenditure potentials
by distinct retail category and
forecast likely sales and supportable rents for the project.
OUTCOME:
Knowing that the market would support the retail development under consideration,
the residential builder was able to set appropriate residual land values
for the property, which later would be contributed into a joint venture
partnership with a retail developer.
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SITUATION:
An institutional mall owner needed an assessment of the likely impact on
in-line retailers of a Kohl's addition to its center. Identifiable ancillary
benefits to in-line tenants would provide a rationale for setting a reasonable
ground rent for Kohl's.
APPLIED
EXPERIENCE:
Utilizing proprietary data which profiled likely “spin-off”
impacts associated with anchor additions to regional malls, Speer Consulting,
LLC was able to bracket the range of potential sales benefits which could
be enjoyed by mall retailers.
OUTCOME:
The in-line tenant sales uplifts quantified in the analysis were used
as inputs into a financial analysis model which provided the owner enough
information to make the deal with Kohl's, enhancing the center's competitive
market position.
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SITUATION:
A public agency required an independent assessment of the reliability of
a market research study prepared by another
consultant for a mall developer seeking substantial financial subsidies
from local governments.
APPLIED
EXPERIENCE:
Relying on decades of real-world experience in the shopping center development
business, Speer Consulting, LLC was able to establish that the developer's
consultants had both substantially overstated the size of the proposed
mall's primary trade area and the market share it was likely to achieve.
The prospective development was shown to be infeasible in light of market
dynamics in the area.
OUTCOME:
The public agency chose to develop the site in question with non-mall
uses, saving public monies for higher-priority objectives.
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