Location Intelligence 101: A Guide for Real Estate

Pinpoint prime investments with data-driven decisions. We explain how location intelligence can unlock the keys to the right real estate - for investment and development that delivers.

In a market that is riddled with complexity – location intelligence helps real estate industry leaders gain vital competitive advantage and cut-through clarity. huq understands this data more than anyone. Some of the challenges facing the real estate sector you’ll be familiar with include rising inflation and spiralling interest rates (now, thankfully coming down or at least stabilising), the long tail impact of Covid 19 on decentralisation, and – of course – regulatory factors.

Post-Covid working, as an example, has led to a substantial flow of people and resources away from dense urban areas and into suburbs and even further afield. As ‘the local’ is experiencing a revival, the business district and so its property market – particularly commercial – faces a decrease in demand. How then does a portfolio property investor / developer choose the optimum space to purchase?

As ever, location intelligence and live demographic data is key. Real estate data insights have traditionally focused on conventional metrics like occupancy rates, rental fees paid by tenants, and local market trends. More recently however, there’s a growing appreciation of the power of non-traditional variables – like the growth and positioning of local pop ups and stores (think the proliferation of indie coffee shops), localised online reviews (Google, Yell, Trusted Reviews, and app-based Swarm – that was once Foursquare). It also pays to explore any influx into an area of businesses, retail, and hospitality; the latter would not open up if it wasn’t confident there’d be people willing to part with cash for their croissants, carrot cake, or Calamari.

Consider Wimbledon town centre as a microcosm of this phenomenon. The impact of Covid acted as a fatal blow for numerous brands relying on casual foot traffic in this south-west London town, famed more for its tennis than its shopping scene. As a result, the town’s primary retail hub, Centre Court, transformed into a deserted mall marked by boarded doors and misty white windows. The Broadway high street also suffered terribly. However, thanks to astute analysis of localised intelligence, catchment demographics, and geospatial data, Romulus has made an extraordinary property development investment—giving rise to the ‘Wimbledon Quarter’. This revitalised space stands in stark contrast to the old mall, catering to an economically mobile and environmentally conscious demographic, offering a dynamic environment for individuals to ‘connect, engage, and thrive.

Traditional brand staples within generic retail parks face a greater risk of failure amid the substantial shift to online consumerism, causing nearby towns to experience decreased footfall. Instead, we’re witnessing the pull of unconventional businesses—a bespoke wall-climbing franchise, an indoor golf entertainment venue coupled with a light food enterprise, and a sizable seasonal pop-up area featuring a modest ice rink, crepe stands, and Christmas gift outlets. The changing landscape demands adaptation from retail chains, and this is where huq steps in.

Only thorough yet user-friendly analysis of location data and demographics is crucial for making informed investments in property development. With such insights, we anticipate a further surge in housing development and alternative properties.

As the UK’s ageing population continues to grow, the landscape of housing for this demographic faces new challenges. With the possibility of multi-generational living arrangements and a strain on care facilities, there’s an urgent need to adapt accommodation options. The key to addressing these challenges lies in optimising real estate construction to cater to the evolving movements and needs of this population. Exploring this market presents a meaningful opportunity to develop top-tier real estate that fosters communities and offers support to individuals and families. Through prioritising dignity, independence, and affordable housing, we aim to create a nurturing environment for all. Only the real estate companies who have the data can best capture this arising new opportunity.

There are a myriad of ways huq’s core location expertise could help identify successful investment strategies for property location optimisation, including:

• Investment – Harnessing visitor insights from specific areas aids in informed decision-making for selecting promising real estate sites and capitalising on property investment trends.
• Marketing – Utilise real estate market insights to target the appropriate stakeholders effectively.
• Competitive benchmarking – Assess your position within the market by leveraging location intelligence solutions and market intelligence.
• Housing and rentals – Attract tenants and discover suitable vacant units through comprehensive real estate market research.

We aim to minimise risk in site selection, real estate investment, and portfolio management by fostering repeatability and reliance on data. These crucial factors can be further enhanced by incorporating layers of location-based data, leveraging huq’s expertise and cutting-edge tools as industry leaders. Let’s look at some examples.

Footfall

This data can identify what kinds of stores’ customers visit a given area or district. Are there out-of-the-way venues that are popular also, that could be reached by a close drive or transport? These are all decisions forming values.

Density

Better understanding behaviour and product popularity, gives retailers a strong hand to forecast demand, and therefore more accurately optimise supply – minimising stockouts and reducing overstock accordingly. Location data, and AI analysis can even help identify the busiest times and routes for last-mile delivery services. We imagine (for example) florists, and restaurants would benefit from this knowledge. This is the kind of intelligence that drives Amazon – but it’s yours at a fraction of the expense and hassle!

Dwell

How many people visit a business area? How long did they spend there? How does current foot traffic compare to last year or to 2021 and even before Covid? Which days are the most crowded? These are all key indicators for real estate investors that can support making sound, informed judgements – where premium investment is vital.

Catchment

By connecting visitors to geographic movement and - anonymised - demographic detail, developers and investors can see live and historic detail on demographic segmentation; aiding real estate market forecasting as to who these groups are and what they care about.

Don’t take our word for it, we work with some of the market’s largest retailers and hospitality merchants who use our proprietary data insights to make informed strategic decisions that support better business. One such client is JD Sports, who utilised our Catchment Areas insights to measure the size and fit of consumer opportunity. This drives decisions when assessing new store locations – taking into account competitive influence intelligence and the potential impact on nearby outlets - so as not to cannibalise existing customer segments.

This is a significant step-change for JD Sports when comparing data to, say, more generalised drive-time catchment information. As Alastair Browne, Group Head of Site Research and Strategic Insight at JD Sports puts it, “huq’s Catchment Insights allows JD to more accurately assess the impact of the wider retail catchment area of the sales potential of new store opportunities.”. With 900 store locations, and annual revenue of £10.12bn, huq’s core products for retail are a staple, and invaluable, tool for JD Sports to remain competitively advantageous.

Regis Schultz, JD Sports’ CEO, sums it up even more simply, “I don’t approve new stores unless they are planned after consulting huq’s data.”

How we work with you

Our customer success team works directly with you to ensure alignment with your aims and business objectives, providing a solid environment to create strong strategies and make game-changing decisions. We will support you to create compelling data-driven narratives that support your initiatives for stakeholders including Board, C-suite, internal, external partners and colleagues.

huq is trusted by over 300 partners, including major retailers, news institutions, the top 5 real estate brands, over 100 Government organisations, and internationally esteemed university research teams. Our experience demonstrates you’re in safe hands when it comes to leveraging crucial cutting-edge technologies – made straightforward by our experienced and personable team.

For Store Planners and Franchisees

Imagine a world where uncertainty fades away, and every decision you make is backed by precision. huq steps in as your partner, meticulously confirming the potential of new locations through both quantitative and qualitative success criteria. No longer will a location's performance remain a mystery; huq unravels the truth through side-by-side ranking with direct sales-informing metrics. Analysing trends across diverse timelines empowers you to discern correlations and take decisive actions with confidence. With a centralised view of all your locations, delve deeper into demographics and competitor capture rates, enabling unparalleled insights for your strategic planning.

For Market Planners and Strategy Leaders

In the realm of market expansion, huq emerges as your indispensable ally, elevating your strategy with real-time insights to identify and monitor potential locations for exponential revenue growth. Gain an unparalleled advantage by being the pioneer in discovering burgeoning areas before your competitors, supported by huq's cutting-edge data. With precision, huq crafts a curated list of high-quality expansion sites grounded in real-time data insights, ensuring every decision is underpinned by accuracy and trust. Benchmarking crucial KPIs becomes effortless, guiding your vital decisions with a firm foundation of reliable data. huq isn't just about expansion; it's about understanding consumer behaviour intricacies, refining development projects through in-depth consumer movement analysis. huq empowers you to boost sales predictions, seize lucrative opportunities, and sculpt an expansion strategy that leads the market.

For Optimisation and Portfolio Managers

huq presents the gateway to unlocking the full potential of your existing portfolio, transcending traditional strategies to meticulously optimise and maximise your investments. Seamlessly identifying gaps and circumventing cannibalization, huq’s data is built to help you ensure peak performance across your entire estate. It's not just about identification; huq delves deep into customer behaviours, distinguishing between successful and unsuccessful patterns to guide your decision-making. Picture a comprehensive ranking of potential locations, empowered by sales-informing metrics that validate your strategies against a myriad of metrics, guaranteeing confidence in every move. huq doesn’t just stop at identification—it captures your target audience precisely where they are, enabling swift and assured action driven by real-time data. Don't let opportunities slip away; huq illuminates the metrics underlying store triumphs or setbacks, giving you the power to optimise and elevate your portfolio to unprecedented heights of success.

For Impact

Retailers must be increasingly demonstrative of Environmental, Social and Governance (ESG) commitments, and transparent to an ever-demanding consumer and colleague base. New and existing customers smell, see, and sense any deviation from authenticity. And they let retailers know their disapproval through their purchase power, spending with social conscience.

So, our advice? Make the high-level business decisions easier with the right location, footfall, dwell and density, and catchment intelligence. Leaving you more time to concentrate on product, people, and planet.

Consider us a colleague and cheerleader – keen to see you put your best foot forward and stride on armed with the toolkit to take on the rest.

We would love to work with you – today – on your retail strategy, informing your leadership team with the insights that mean you can do what you do best. We’ll help you optimise and grow your customer base, and you can ensure colleagues are supported and driven by your company’s success. So, make the right decisions with data as unique as your offering. Visit Retail - Huq Industries to book a demo, call us with your questions, and we look forward to meeting you.