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Overview
ALDI is a grocery store chain known for their affordably priced white label products. ALDI focuses on giving the customer the most efficient and shopping experience, while saving money without a compromise in quality. As an investment, ALDI attracts investors across the spectrum, due to their long-term leases (15 - 20 years) with no Landlord responsibilities. Their typical ground leases calls for rent increases every 5 years to help combat inflation. ALDI is a German-based private company, which has had tremendous success in the United States over the years. ALDI currently has over 1,800 locations in 35 states and is planning to have over 2,500 locations by 2022.
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Financial Fundamentals
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Welcome to NNN Trends, a free online resource we created at Equity Retail Brokers to empower investors with comprehensive data and tools, enabling them to make informed decisions about triple-net-lease retail properties quickly and efficiently.
Our comprehensive analytics allow users to access various metrics and data points, including Cap rates overall and by region. Our platform's user-friendly interface enables you to easily navigate sectors such as automotive, big-box retail, banking, convenience stores, and fast-casual/QSR restaurants.
Additionally, users can connect with brokers for professional opinions on property values, market trends, and financing quotes.
Retail Real Estate Market Research and Statistics for 2024
The retail real estate sector has shown massive growth in recent years, which contradicts the conventional wisdom that America has too much retail space. In fact, the aggregate vacancy has declined significantly since 2019.
This fact makes retail commercial real estate an attractive investment opportunity; the decrease in vacancy rates increases rental income potential, further driving the market value of the property.
However, the specifics of any investment depend greatly on several factors, such as location, property type, tenant stability, and economic conditions, underlying the importance of market research. In this post, we'll discuss the fundamentals of market research and why it should be conducted prior to any investment decision.
What is Retail Real Estate Market Research?
Real estate market research, also known as real estate market analysis or comparative market analysis, is the comprehensive analysis of the current market value of like or similar commercial real estate (CRE) properties.
This research should be performed by experienced professionals each time you're looking to buy or sell a commercial property; market insights will help you understand the current market and relevant trends, including the market value of comparable real estate property.
Real estate brokers regularly provide comprehensive market reports that buyers and sellers use to better understand the value of the asset or assets they are trying to buy or sell.
Why is Retail Real Estate Market Research Important?
In an era in which information is power, making an informed decision is among the most important reasons for conducting market analysis. Comprehensive analysis helps to identify real estate market trends and opportunities. It grants valuable insight into market conditions and dynamics, helping you identify different investment opportunities.
Real estate trends analysis also enables you to assess the demand and supply in the local and capital markets, allowing you to identify areas with undersupply or oversupply. This is important when making investment decisions, as investments into markets with high demands and limited supply can maximize your potential returns. (but make for more expensive investments, no?)
Lastly, the valuation of retail properties is important for making informed purchasing or selling decisions. Commercial real estate market analysis reports also evaluate property based on occupancy and vacancy rates, leasing activity throughout the year, its current market value, and several other metrics.
Retail Real Estate Market Research Process.
Performing real estate market research begins with clearly defining the purpose and objectives of your research and the specific information you seek upon which you would base your decisions. Defining the purpose of your research will help you focus your market analysis to gather the most relevant data.
Once the purpose and objective is established, you should identify your target market and target demographics, as well as your geographic area and property type. By narrowing things down, you can gather more specific and accurate data.
The collected data should include property pricing, rental rates, potential population growth, employment rates, and infrastructural development. Use this data to discern trends, patterns, and correlations within the analysis data; for example, you might be able to discern a rising demand for rental properties in a specific area, indicating a potential investment opportunity.
How Can We Help?
Equity Retail Brokers is a respected and well-established retail brokerage firm offering a comprehensive range of services, including tenant representation, landlord leasing, investment sales and asset management, as well as market research for potential buyers and sellers. If you're looking to identify opportunities, look no further than Equity Retail Brokers.
