Javelin Solutions

Growing franchisors seek an intricate balance when selecting expansion markets. A strong economy is critical for success, however, the stronger the economy the higher the cost and greater the competition will be for retail space.

Javelin Solutions has created the Retail Market Bull's-Eye to track the condition of the retail markets in 20 major US cities. A “healthy” market will have a 5% vacancy rate and 5% of the retail inventory under construction. Healthy markets offer franchisors stable, growing economies to support their new business with attainable real estate options.

The Retail Bull's-Eye is broken into quadrants, Over Stimulated and Over Reactive, representing extreme market conditions, and Playing Catch-up and Back To Reality, representing transition markets.

Fourth Quarter Market Commentary

Of the fourteen cities surveyed, Denver and South Florida, comprised of Miami , Palm Beach and Dade and Broward Counties , are the closest to equilibrium, reflecting a healthy amount of both demand and new construction. Most cities surveyed fall into the Back to Reality quadrant, meaning these cities are recovering from excessive retail construction and lagging demand, with Dallas and Houston in the extreme. Orange County , Seattle and San Diego are difficult markets for retailers to penetrate given minimal new construction and excessive demand.

Disclaimer

Multiple factors should be considered when assessing new markets, including the condition of the retail market. Javelin Solutions Retail Market Bulls-Eye is intended to assist, but not be solely relied on, in a franchisor's due diligence process.

Marcus & Millichap, Trammell Crow Company and CB Richard Ellis Research provided vacancy and construction statistics. Javelin Solutions does not assure the accuracy of this information but does cross-reference the information from these resources.

Atlanta

(12.2%) Austin

Boston

Chicago

Dallas/Ft Worth (12.6%)

Denver

(9.8%) Detroit

Ft Lauderdale

(10.6%) Houston

Jacksonville

(10.8%) Kansas City

Las Vegas

Los Angeles

Miami

Minneapolis/St Paul

New York City

Northern New Jersey

Orange County

Orlando

Philidelphia

Phoenix

Portland

(9.1%) Salt Lake City

San Antonio (11.3%)

San Diego

San Fransisco

San Jose

Seattle

Tampa

Washington D.C.