Prepare retail market analysis for the Lakeforest Mall site. For this assignment, you will need to review the following report:
REIS Retail Gaithersburg Submarket (attached)
SiteWise Customer Spending Report (attached)
Capture Rate Evaluation Process (attached)
Please be sure to review any other relevant reports in this area, if needed.
- Begin with a review of the number of households and employees in the market area. Create a table to clearly show the number of households with direct access (in the market trade area) to a potential retail opportunity on the Lakeforest Mall site.
- Determine the total (aggregate) amount of retail sales currently being generated by residents in the trade area by retail category. Within the Customer Spending Report, Neighborhood Goods & Services retail spending line items are highlighted in blue; Food & Beverage is highlighted orange; and GAFO is highlighted blue.
- Research existing retail centers within close proximity to the Lakeforest Mall site. Leasing plans and brochures can be a good source of information regarding the number and type of tenants, as well as the total amount of square feet at each location. See the leasing plan for Gaithersburg Square Download leasing plan for Gaithersburg Squareas an example (attached).
- Prepare an expected capture rate for each retail category (see Capture Rate Evaluation Process link above). Please include a table that indicates how much of a percentage reduction you applied for each existing retail center (up to three each) for each retail category.
- Create a table where total sales per retail category are divided by a healthy expectation of sales per square foot for each retail category. For the purposes of your analysis, use $400/sf as an ideal sales figure for NG&S and $350/sf as an ideal sales figure for the F&B and GAFO retail categories.
- How much retail can the market area support? Use this formula to find out:
Total Aggregate Sales within each retail category X Capture Rate for Each Category X Sales Per Square Foot expectation for each retail category = Total Amount of Suppotable Retail Space (by square foot) for each retail category
- Document any plans for new retail development within five miles of Lakeforest Mall .For more information, visit the website, Development Activity Information Center for Montgomery County Link( https://montgomeryplanning.org/development/)
- Taking the retail development pipeline into account, determine how much retail space can be market-supported at the Lakeforest Mall site in total as well as in each retail category.
Develop your retail market analysis report using Microsoft Word. This analysis should be approximately 2,000 to 2,500 words.