Foot Traffic Is Vital for Retailers, so Why Do Lease Deals Lack Data

Brick-and-mortar stores are still reeling from the growth of e-commerce, which mushroomed during the pandemic. Today the retail real estate sector remains in flux, impacted by a recessionary environment and changing consumer preferences. Yet, the sector is not dead by any means. Around 85 percent of the shopping in the U.S. is still done in-store, and that figure is even higher for categories like grocery and value retail. To help retailers get the most out of their real estate, they have been turning to foot traffic data. It is becoming increasingly vital to retail destinations’ survival and retail property owners’ occupancy rates in the presently uncertain economic environment.

“Brokers are certainly leveraging foot traffic to demonstrate opportunities. But, critically, it’s just a piece of the wider location analytics puzzle that brokers are utilizing,” Ethan Chernofsky, a senior vice president with Placer.ai, told Propmodo. That puzzle includes understanding true trade areas, which can help identify opportunities at centers that might not be seeing the best foot traffic, and cross-visitation, which helps demonstrate co-tenancy benefits. Additionally, planned development analysis can help brokers reduce the risk that future projects may present. “The key for brokers is to have a wider understanding that they can use to find the ideal properties and then effectively make the case to the prospective tenant,” Chernofsky added.

Foot traffic is showing positive signs of late. In May, foot traffic nationwide increased 6.6 percent month-over-month, and the favorable figure appears even more promising on the heels of a 5.

Read more at Propmodo.

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