Best Use Sample Report

Best Use and Location Risk Score Assessment

Key definitions

Address

Mt Arlington, NJ 07856

Area = 130,447 ft²

Best Use Basket・29

0.16

0

1

Best Uses

29 of 188

Location liquidity rate

Average

Best Use Basket・29

Current use

Services

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

Construction

Special trade contractors
Carpentry, floor work
Electrical work
Plumbing, heating, air-conditioning
Heavy construction

Public administration

Executive offices
Courts

Manufacturing

Laboratory, analytical, measuring devices
Electronic components and accessories

Retail trade

Retail nurseries, garden supply stores
Used merchandise stores

Sports

Sports center

Tourism

Important tourist attraction

Transportation and public utilities

United States Postal Service

Best Uses – statistics

Best Use

Industry

Match rate ↓

%

Number

N

Frequency

%

Location Risk Score

Current

Benchmark

Delta

Rental rate

ft²/$K/y/median

Retail nurseries, garden supply stores

Retail trade

92.9

33

15.6

5.5

5.3

0.2

Important tourist attraction

Tourism

86.8

34

17.9

5.4

5.7

– 0.3

14

Executive offices

Public administ…

81.0

35

13.8

5.4

5.9

– 0.5

18

Photographic studios

Services

80.5

63

15.9

4.9

5.5

– 0.6

26

Vocational schools

Services

78.5

52

15.2

5.5

5.5

– 0.6

26

All Best Use options are in the full report

Annual rental revenue estimate

$1,826,000

Best Uses Match rate vs. Number

Best Uses

Other

Current property uses

Best Use

Services

Programming, data processing

Offices and clinics of doctors of medicine
Candy, nut, confectionery stores
Engineering, architectural services
Management, public relations services

Finance

Insurance agents, brokers, services

Manufactoring

Food preparations, kindred products

Additional information on location

LRS Commercial potential

Commercial potential

Visitation

Business

5.9

• average

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

% of July 2019

2 min – 3 h

3+ hours

2+ minutes (total)

Key definitions

Location Liquidity Rate

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
(BUB)

Composition of Best possible Uses represented by a list of Business Categories for the Selected Address.

Best Use

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.

Business Category (BC)

Category of business defined under Standard Industrial Classification (SIC) 4-digit level.
https://www.osha.gov/data/sic-manual

Match Rate
BC to BUB, %

Measure of how well a Business Category matches the Best Use Basket of the Selected Address. 1% — low, 100% — high. Threshold: 60% and higher.

Businesses
(Number)

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), %

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%.

Location Risk Score (LRS)

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)

Location Risk Score, calculated for a given Business Category at the Selected Address.

LRS
Benchmark Addresses*** (LRS_B)

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.

Habidatum International, Inc.

New York, US
Podgorica, ME
Tallinn, EE

ask@habidatum.com

+1-347-321-8220

447 Broadway 2nd Floor #378,

New York, NY 10013, USA