Best Use and Location Risk Score Assessment
Best Use Sample Report
Address
Mt Arlington, NJ 07856
Location Liquidity Rate
Best Uses
Location liquidity rate
29 of 188
Average
0
1
0.16
Area = 130,447 ft²
Number of Business Categories in the Best Use Basket as a % of total number of Business Categories. Higher rate offers better commercial flexibility and shows how quickly a property can be sold in the market, or re-profiled into a better-performing asset.
Best Use Basket・29
Composition of Best possible Uses represented by a list of Business Categories for the Selected Address.
Current use
Photographic studios
Vocational schools
Commercial sports
Dance studios, schools, halls
Theatrical producers, bands, entertainers
Child daycare services
Mailing, commercial art, photography
Research, development, testing services
Programming, data processing
Vocational schools
Commercial sports
Dance studios, schools, halls
Theatrical producers, bands, entertainers
Child daycare services
Mailing, commercial art, photography
Research, development, testing services
Programming, data processing
Special trade contractors
Carpentry, floor work
Electrical work
Plumbing, heating, air-conditioning
Heavy construction
Carpentry, floor work
Electrical work
Plumbing, heating, air-conditioning
Heavy construction
Retail nurseries, garden supply stores
Used merchandise stores
Used merchandise stores
Sports center
Important tourist attraction
United States Postal Service
Executive offices
Courts
Courts
Laboratory, analytical, measuring devices
Electronic components and accessories
Electronic components and accessories
Services
Construction
Retail trade
Sports
Tourism
Transportation and public utilities
Manufacturing
Public administration
Best Uses – statistics
This section justifies the above results, presenting the metrics accounted in the Best Use selection.
0
Current
Benchmark
Delta
ft²/$K/y/median
Best Use
All Best Use options are in the full report
Industry
Match rate ↓
Number
Frequency
%
N
%
Location Risk Score
Rental rate
—
0.2
5.3
5.5
15.6
33
92.9
Retail trade
Retail nurseries, garden supply stores
Important tourist attraction
Tourism
86.8
34
17.9
5.4
5.7
– 0.3
14
Executive offices
Public administration
81.0
35
13.8
5.4
5.9
– 0.5
18
Total number of businesses within the selected Business Category located in all the addresses of the Selected Geography*, and scored on LRS scale similarly to the Selected Address. This number shows how unique (a theater) or conventional (a grocery store) this Business Category is.
Photographic studios
Services
80.5
63
15.9
4.9
5.5
– 0.6
26
26
– 0.6
5.5
5.5
15.2
52
78.5
Services
Vocational schools
Lease price multiplied by target location area in office lots, located in close proximity to POIs in similar LRS locations. Based on available lease data from Loopnet.com in 6 NJ counties.
Measure of how well a Business Category matches the Best Use Basket of the Selected Address. 1% — low, 100% — high. Threshold: 60% and higher.
Indicator of the Commercial Potential** of the catchment area around the property at the Selected Address: from 1 for high risk, low potential, to 10 for low risk, high potential. The size of the catchment area depends on Business Category (i.e, small for grocery stores, large for corporate offices), as well as on the scale of the business.
Measure of how frequently businesses of the selected Business Category appear in all possible addresses of the Selected Geography*.
Frequency = Number of Businesses/All businesses in this Business Category in the whole Selected Geography* x 100%.
Frequency = Number of Businesses/All businesses in this Business Category in the whole Selected Geography* x 100%.
Annual rental revenue estimate
$1,826,000
Best Uses Match rate vs. Number
This quadrant maps Business Categories by Match Rate and Number of existing businesses in the Benchmark Geography. Blue represents Best Uses, grey for others.
Best Uses
Other
Current property uses
Best Use
Programming, data processing
Offices and clinics of doctors of medicine
Candy, nut, confectionery stores
Engineering, architectural services
Management, public relations services
Offices and clinics of doctors of medicine
Candy, nut, confectionery stores
Engineering, architectural services
Management, public relations services
Insurance agents, brokers, services
Food preparations, kindred products
Services
Finance
Manufactoring
Additional information on location
LRS Commercial potential
Commercial potential
• average
5.9
Visitation
Business
7.6
4.4
Location with moderate accessibility to top centers, and average concentration of visitors and businesses.
Visitation is above Business score, an opportunity to grow business diversity.
Visitation trends
Monthly visitors
2 min – 3 h
3+ hours
2+ minutes (total)
% of July 2019
Monthly visitors
% of July 2019
2+ minutes (total)
3+ hours
2 min – 3 h
Key definitions
Location Liquidity Rate
Best Use Basket
(BUB)
(BUB)
Number of Business Categories in the Best Use Basket as a % of total number of Business Categories. Higher rate offers better commercial flexibility and shows how quickly a property can be sold in the market, or re-profiled into a better-performing asset.
Composition of Best possible Uses represented by a list of Business Categories for the Selected Address.
Best Use
Business Category (BC)
A Business Category that extracts the highest possible economic value of the property at the Selected Address, compared to the other locations where this Business Category is present. Selection criteria: LRS value of the property address should be within statistically meaningful proximity of the most frequent LRS value in this Business Category.
Category of business defined under Standard Industrial Classification (SIC) 4-digit level.
https://www.osha.gov/data/sic-manual
https://www.osha.gov/data/sic-manual
Match Rate
BC to BUB, %
BC to BUB, %
Businesses
(Number)
(Number)
Measure of how well a Business Category matches the Best Use Basket of the Selected Address. 1% — low, 100% — high. Threshold: 60% and higher.
Total number of businesses within the selected Business Category located in all the addresses of the Selected Geography*, and scored on LRS scale similarly to the Selected Address. This number shows how unique (a theater) or conventional (a grocery store) this Business Category is.
Businesses
(Frequency), %
(Frequency), %
Location Risk Score (LRS)
Measure of how frequently businesses of the selected Business Category appear in all possible addresses of the Selected Geography*.
Frequency = Number of Businesses/All businesses in this Business Category in the whole Selected Geography* x 100%.
Frequency = Number of Businesses/All businesses in this Business Category in the whole Selected Geography* x 100%.
Indicator of the Commercial Potential** of the catchment area around the property at the Selected Address: from 1 for high risk, low potential, to 10 for low risk, high potential. The size of the catchment area depends on Business Category (i.e, small for grocery stores, large for corporate offices), as well as on the scale of the business.
LRS
Selected Address (LRS_S)
Selected Address (LRS_S)
LRS
Benchmark Addresses*** (LRS_B)
Benchmark Addresses*** (LRS_B)
Location Risk Score, calculated for a given Business Category at the Selected Address.
Location Risk Score average for all addresses where an occurence of the businesses within the selected Business Category is the most frequent.
Delta = LRS_S – LRS_B
*
**
***
Measure of commercial advantage (positive value) or disadvantage (negative value) of the Selected Address over Benchmark Addresses***. A higher Delta corresponds to a better Match Rate.
Selected Geography - an overall area, selected as background context: globe, nation, state, metropolitan area, county, and the like. In the current case the selected geography is represented by five counties in New Jersey: Morris, Sussex, Passaic, Hunterdon, Somerset.
Commercial Potential is the function of visitation and business diversity of the catchment area.
Benchmark Address is an address taken for a comparison with the selected address.