Developers
Shopping center & mall owners use sales data to optimize their portfolio & measure its unique attributes.
The number one method for valuing a standalone retail property is it's cap rate. The number one component to raise that NOI? Strong sales performance.
A Capitalization rate is a property's income return relative to value. How many years in rental income will you need to recoup the purchase price?
A great cap rate is usually 5%. Let's assume you bought a free-standing building for $2,000,000 with $100,000 in annual rental income...
Book a DemoWell, turns out your tenant did $4,000,000 last year, meaning they're only paying 2.5% of their yearly sales to pay the rent. It varies depending on industry, but a good rule of thumb for fast food restaurants is to pay 5% of their rent to sales.
Book a DemoIncrease your equity: This tenant likely has tolerance to even double their rent to $200,000. In turn, your 5% cap rate now re-values your property at $4,000,000, dramatically increasing your investment.
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