1. MARKET AND COMPETITIVE ANALYSIS
The important attributes to consider when analysing the supply and demand considerations that affect a specific retail market are the consumer's disposable income, population and household numbers, and consumer expenditure percentages for certain retail products and service categories such as food at home, food away from home, apparel, and furniture. A Lightstone report and/or desktop study is compiled on the property.
2. LOCATION AND SITE ANALYSIS
The successful location of a retail store is linked primarily to the residential base – customers who reside adjacent to or near the retail store. In addition, the retail establishment can serve the needs of customers who work near the property but do not reside nearby. These customers are a part of the daytime population in the subject property's trade area. A site evaluation is compiled on the property to determine its grading.
3. POLITICAL AND LEGAL ANALYSIS
Political considerations and societal issues are so pervasive that no feasibility can be evaluated and no decisions can be made outside the context of them. Zoning jurisdictions provide necessary comprehensive plans for current and future permitted land use. Zoning then determines the use of a particular site. There may be opportunities to pursue changes or get zoning variances. Building codes determine the type of building, allowable signage, and parking lot requirements for the site. Licensing requirements can restrict the type of use for a site, such as requiring special license for the sale of alcohol and fuel.
4. FINANCIAL ANALYSIS
The results of the first three areas of the strategic analysis ultimately lead to the financial analysis, which determines the financial feasibility. Financial feasibility answers the question “Is the profit sufficient to attract the capital needed to fund the project?”. Further financial analysis compares the alternatives of selling the project upon completion or holding it as a long-term investment.