The three important attributes of a property, as the adage goes, are “location, location and location”. Especially for retail properties, this adage holds true.
For my analysis of retail properties, specifically in the context of REITs, I would expand the “three locations” into something more detailed; the location of influence, the location of competitors and the location of complements.
Before we begin, let us take out a map, and we use the Singapore map for reference, since we are more familiar with the local retail properties here. Next, on each of the retail property the REIT owns, draw a circle with a one kilometre radius.
With this circle(s) in place, we could clearly use the “three locations” for our analysis.
Location of influence
Back in our geography days, we had learnt something called “area of influence”, where a certain shop services a particular area. The location of influence is similar ...
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