Rental Assessments

In the retail environment, the value of premises is determined by the potential the premises offer for sales generation. The higher the sales potential, the higher the rental of premises & vice versa.

The factors that impact on the sales that can be generated from premises are:

• The shape of the premises;
• The customer traffic to which the premises provide access; &
• The income profile of customers to which the premises gives access.

Each of these factors can be quantified & our rental assessment software contains a methodology that uses these variables to rank different premises in terms of rental potential & to suggest the rental differentials that should exist between the different premises.

The software has significant filtering capabilities that allow assessments to be made across all premises, premises of a similar size or shape range or selling similar merchandise. It also provides users with the flexibility to include their own assessment parameters or to compel users to use preset parameters. Different parameters can be set for premises with different characteristics, so providing users with complete flexibility. This latter feature enables, for example, the owner of a number of malls to set rental parameters that managing agents have to adhere to, so ensuring consistency of approach to rental setting across all tenants in all malls. These parameters can differ based on size of premises (i.e. allows a different approach to small space & big box premises) or per merchandise category.