(Walmart vs. Walmart) vs. Community
Hidden strengths and weaknesses of a location can be revealed by big data and its derivative metrics such as Location Risk Score and Location Liquidity Ratio produced by Habidatum.
Look how different they are for two similar Walmart outlets by applying Habidatum’s Best Use Finder. It is not just about the difference in the financial performances of those two Walmarts, it is about unused opportunities of their respective locations.
There is an alternative to conventional industrial view on the best economic use of the property. This view advocates location intrinsic potential, not the performance of the business hosted by the property at this location.
The performance of the business at certain location could be good enough to satisfy the owner, but the loss coming from unrealized potential of the multiple alternative uses that fit this location could be more impressive.
By selecting a specific use of the property at a location the landlord locks the opportunity for the alternative uses of the very same location for quite some time, so the opportunity value for the location could be extremely high.
The higher is the liquidity of a location (number of best uses it could accomodate) the better flexibility the owner of a property would have. But the opportunity cost would also be higher, meaning the loss of potential economic value deriving from the unrealized economic potential of the location locked by the owner’s choice of the current use of the property.
Current use of the property even being financially successful could be harmful for the location opportunities. This argument has always been ignored, if even understood, by our industrial silo-organization society.
It has always been a trade-off between location opportunities and industry performance. However, in this « dialogue » location happened to be the weakest party.
Not any more, as big data gives us a chance to see all unrealized opportunities of a location, …, of all locations actually.
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