Southern View Racing Spares Store Market Analysis: Achieving Business Goals - Essay Sample

Introduction

This analysis seeks to inform Southern View Racing spares store Managers on the best market practices to enable them to achieve their business goals. Many managers new to real estate businesses express high expectations before understanding their business environment. Market analysis is, therefore, necessary to inform them of the potential of the customers and competitors. The report is purposely for a realistic strategic plan and its success. It addresses issues of market rents; occupancy needs regional and neighborhood terrain in a metropolitan market structure.

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Comparison of Rent Rates and Occupancy Trends

This analysis focuses on addressing issues like distance to public service, convenience between tenants and their customers, and location access as discussed in the management plan. The most suitable approach used in this analysis is the supply-based model that recognizes property rental and lease business in the market. We start by researching on rent rates for similar go downs, the number of units available in the market, and average vacancy rates. Further, potential customer engagement research will also necessary. The research will include possible profile age and service preferences to allow for the creation of a favorable and competitive storage facility. Other factors considerable include length of tenancy, occupation, and preferable space sizes. The analysis will be done at the end of every tenancy period for purposes of improvement if need be and for the value of the investment.

However, the analysis intends to consider state-driven policies that automatically will affect the renting and leasing rates applied in the store. Issues concerning business funding, the effect of state involvement, and the number of going down related crimes are affecting market rates (Dolliver, 2019). Therefore, findings on how similar existing businesses are including these in their rent and leasing prices for competitive rental rate determination are necessary.

The capitalization approach will help in the valuation of the estimation of the value of income from the business (Betts & Ely, 2008). Determining the net income of this business in one financial year will inform the management of the viability of the company in the competitive market. Further, informing the control of the sustainability of the business and areas of change if the need arises.

Regional and Neighborhood Analysis

Southern View Racing automobile racing spares store lies on a one-acre sloppy terrain land in the northern Texas State on the outskirts of the city center. This geographical setting gives the store a unique physical look with the tenant-friendly business environment. However, the analysis compares this unique business setting with similar ones in the city center to validate the decisions of establishing this project away from town. The aim of doing regional and neighborhood research is to check the market gap and needs that Southern View Racing spares store can address.

It is evident that several similar godowns have engulfed the Central Business District (CBD) of Texas, and this business idea is going to help decongest the city. The neighborhoods have well-structured residential apartments with tenants who will be customers to the tenants in the store. Most of the similar businesses thronging the CBD have no future expansion space that Southern View has. As a start-up business, it has between 50 and 60 occupancy units and extra functional space to erect another 40 units and other social amenities structures like toilets and bathrooms.

Conclusion

This analysis report informs the managers of Sports View that they have more advantages compared to other similar businesses in the competitive store business. Therefore, it is essential to do this analysis at the end of every tenancy and rental period. The reports will help the company in decision making in areas that never worked to keep it more competitive and always the most preferred in entire Northern America.

References

Betts, R. M., & Ely, S. J. (2008). Basic real estate appraisal: Principles and procedures. Mason, OH: Thomson South-Western

Dolliver, D. S. (2019). A supply-based response to a demand-driven problem: a fifteen-year analysis of drug interdiction in Poland. Crime, Law and Social Change, 1-23.