Property
Maximising yields by predicting demand
The Challenge
Demand for specialist industrial spaces is difficult to anticipate
Large capital outlays means that voids have substantial financial impact
Client was largely reliant on third parties for market insight
Preparing a bid for site purchase was slow and high risk
Our client was reliant on third party forecasts to decide which types of specialist industrial spaces were needed and at which locations. Every year they had some sites that failed to find occupiers – tying up capital and having financial complications that could last for months or even years. This client needed a solution which would reduce uncertainty and de-risk their development appraisal process. They needed a more assured way to make their investment decisions.
The Results
£8m lower costs to generate the same income, increasing yields by 8%
Pricing forecasts that are substantially more accurate than other sources
Insight about the drivers of local value, all at users’ fingertips
Local competitor information, allowing focused market targeting
+£8m
anticipated cost savings across first set of sites
Arca Blanca developed insight and a decision-support tool that uses data science to accurately predict demand at new sites and generates site mix recommendations for how to optimise income and yields. It does this substantially better than any human could. It also provides users with an unprecedented amount of local knowledge on demographics, past & future lease events and customer segmentation; allowing more targeted marketing.
“”
I wish we had this tool available when we were plotting for our last site. It would have told us to build different products. This would have saved us significant costs and eliminated the voids we have seen.
Divisional Head, Industrial Space Owner