What data points really matter when comparing commercial real estate markets for future investments or business opportunities? Market revitalization and successful economic redevelopment depend on a variety of variables working in sync. More than that, it requires thoughtful planning and an opportunistic mindset to take advantage of the right circumstances at the right time. Having access to reliable, real-time data doesn’t hurt either.
As we develop strategies for comparing key markets that may be primed for revitalization, it’s helpful to evaluate examples of past success. By evaluating cities and neighborhoods that have undergone successful revitalization, we can tune into some of the key data points that are useful when trying to replicate such success.
Here are a few important ones to keep in mind:
• Number of new businesses (and in turn, jobs) – Job growth and business development are critical to economic prosperity. How many new businesses took up real estate in your market? More importantly, what were the driving forces behind the uptick?
• Vacancy rate – Vacancy rates can speak volumes in terms of business and job growth. How have the vacancy rates shifted over time, and what kind of longevity is there among businesses? Are the commercial properties frequently turning over, or is there stability in the market?
• Transit/walk score – Through economic development, transit and walk scores can be improved significantly. What impact have improved infrastructure projects had on the success of an area’s redevelopment efforts?
• Price per square feet – How has supply and demand affected the prices of commercial real estate properties in your market? Has there been a shift after a successful revitalization, and how big was the shift?
Evaluating these data points and numerous other factors can be insightful when trying to hone into a potential new neighborhood’s opportunity for success.
Professionals in a variety of fields (REIT’s, tax pros, financial institutions, etc.) rely on market data to make educated business decisions critical to their organization’s success. Solely relying on quarterly market reports and dated commercial real estate data can possibly hinder these decisions. Pros can stay ahead of market trends with custom commercial real estate data sets that are updated in real-time. Know what’s going on in your market, now. Get in touch with us today to learn more.