Modeling software for predicting location

[Shannon Beavers]

What software do you use to predict the best location to buy or build real estate? Looking for retail real estate not residential.

[Joel Owens]

It's hard to take what you are saying seriously to open 1,000 to 10,000 locations in a span of 3 to 5 years.

If you model out other brands especially starting out brands the growth is not nearly that fast. You can have entitlements state by state that severely slow down the expansion process. Example in CA the time to open 1 location in a year you might could open 3 in the same span of time in TX. Business friendly states can make a large difference in cutting through the red tape.

Also if your concept is retail inline in a strip center versus a stand alone can affect timelines and availability of premium expansion option locations. Stand alone dirt there might not be as many options as vacancies in centers for an area to choose from.

If you are an existing retailer then you should already know how to model.

Sounds like you might want to PROVE your business model in a set area first and then possibly expand outward. Tenant rep leasing brokers have modeling software they use. It's a lot more work than people think. The more premium a spot is the more tenants want it.

Example if I have dirt that Chick fila wants and I can sell it at a 4 cap exit value then I have zero interest leasing to an unknown tenant just expanding because my cap rate resale value has to be a lot higher where I lose money. It's the B to C locations that start up tenants tend to land in a market that the top brands pass on. Top brands usually pay highest rents per ft but want the A to A+ location.