A tenant feasibility analysis enables shopping center owners and developers to determine the specific types of tenants that have the highest likelihood of success at a particular site. This information gives them a crucial head start in the process of targeting potential tenants who are most likely to perform well at the site and therefore ultimately pan out to be most motivated to lease space. Alternatively, the information can be used to generate interest from retail types that are found to be currently underrepresented in the trade area.
By providing a direct measure of retail and food service category performance in the trade area, a tenant mix analysis by ARA is able to reveal sales potential for a large number of potential tenant types. As with many retail types, potential sales performance is a mixture of the amount and quality of competition in the area, the proximity to the available existing and future potential and the complementary mix of tenant offerings that a particular center offers area residents. The process begins with our team conducting a complete inventory of trade area square footage for all retail categories. The inventory is then compared against known levels of sales to produce average outlet sales per square foot. By comparing these results to typical outlet performance, one is able to identify those tenant types that are currently performing above or below average and to quantify specific levels of additional supportable square footage by retail category. Data can be used for larger retail categories or more specific drill down analysis.