Financial Investment Analysis Project Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Property Description

Address: 11222 Providence Rd W Charlotte, NC, 28277

Offering GLA: 74000 square feet

Year Built: 2004

Parking Count: 214 Spaces

Leased:100%

Asking Price: 111, 00,000

Source: Offering Memorandum

The location of the Charlotte Publix shopping center for which the investment analysis has been performed in this report is basically located in the most densely populated residential area where there are many retail centers and nearby there are many other shopping centers. Most of the retail centers in the surrounding area usually offer the everyday goods.

First of all, the demographics of the population and the Charlotte area need to be analyzed. The growth rate of the population over all the previous years is important factor and it needs to be considered. If we look within the radius of 1- to 3- mile, then it could be seen that the population in the area is growing and this means that the total number of the people in the area and the future users is also increasing significantly. Furthermore, it is also estimated that this rate would keep on growing in the future as well which is beneficial for a buyer of the concerned property. The population growth rates over the previous decades could be seen in the graph below:

Furthermore, the use of the Charlotte Publix shopping center by the residents of NC could be seen from the target groups which would be concerned about the stores. The age of the possible users of the shopping center and the distribution of the total population in North Carolina is shown in the bar chart below:

People QuickFacts	North Carolina	USA
Population, 2014 estimate	9,943,964	318,857,056
Population, 2013 estimate	9,848,917	316,497,531
Population, 2010 (April 1) estimates base	9,535,691	308,758,105
Population, percent change - April 1, 2010 to July 1, 2014	4.3%	3.3%
Population, percent change - April 1, 2010 to July 1, 2013	3.3%	2.5%
Population, 2010	9,535,483	308,745,538
Persons under 5 years, percent, 2013	6.2%	6.3%
Persons under 18 years, percent, 2013	23.2%	23.3%
Persons 65 years and over, percent, 2013	14.3%	14.1%
Female persons, percent, 2013	51.3%	50.8%

The estimated growth rates for the population for all the future years to come and the ratio of the female persons and the people under the age of 18 years shows that the number of the users for the shopping center is likely to increase in the future. Along with this, the distribution of the people and the spending pattern spend on such certain type of the services is quite high. The spending power is high and it shows that the amount which the people would be willing to spend in the country is high and it is increasing, which would ultimately lead to increased use of the Charlotte shopping center.

Market Overview

The Charlotte Publix shopping center consists of around 214 parking spaces and 80 stores. The current tenant of this property is leaving the store and vacating the location. On the lower level of the shopping center, there is a food court and the specialty of this food court is that it offers a wide variety of the ethnic food offerings. Furthermore, on the same site, there are areas including the Charlotte area transit hub and a former vacant store. On the eastern edge of the shopping center property lies an indoor flea market which is adjacent to the Central Avenue.

The usage of the land in Charlotte has diverted from historic downtown consisting of the inner beltway. The usage of the land has focused primarily upon the commercial, urban, mixed density and the mixed use density. The shopping center is further located between the outlying suburbs and the center of the city within the second tier. Along with this, the preferences of the customers also determine the nature of the market and these preferences vary from region to region. Charlotte is one of the fast growing areas and in such areas, the time becomes an important resource for the people and they prefer and become more convenience oriented.

Most of the tenants in the Charlotte area have the same pricing formulas and therefore, in order to create synergy most of them are co-locating in order to boost their sales. As a result of this, shopping centers and malls have to re-invent them in order to meet the changing needs of the customers. The Charlotte Publix shopping center would be targeting the hip hop, ethnically diverse, urban and discount consumers.Financial Investment Analysis Project Case Solution

Demand Potential

The profile of the property shows that the primary trade area for this property with the given preference of the consumers, competitive malls, threshold patterns and all the other factors lies within a radius of around 3 miles of the population..................

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