Commercial Property
Research and discuss the macro, meso and micro drivers that will influence the client’s decision to proceed with development or not:
Macro Factors: • The Role of Technology :Technology not only creates new products for retail companies to sell, but also plays a major role in changing the way retail companies do business. Technological advancements such as the Internet offer retail customers additional shopping options. Technology also opens new retail markets, such as the Home Shopping Network and web-based retailers such as Amazon.com. Barcoding and computerized billing systems have improved the retail industry by allowing retailers to develop new processes that increase efficiency. Point-of-sale systems increase sales by allowing retailers to process cash, check, credit- and debit-card payments. • The advancement of technology coupled with a move towards “Green” buildings increase cost of development including investments in solar power capacity through to tweaks to refrigeration to repurpose the surplus heat generated
The Role of Government : Laws, regulations and other government policies can have a number of positive or negative effects on the retail industry. Government assistance, such as government-backed loans and subsidies, can help fledgling retailers grow or allow an established company to keep costs low for consumers. However, government policies can also hinder businesses by imposing regulations that increase costs, such as requiring the development and integration of new systems or procedures or establishing a minimum wage that small retailers may not be able to afford. The retail industry also relies heavily on government-supported road, rail and water transport infrastructure to move goods and bring customers to retail locations.
The Role of Economic Factors: Retail sales are driven by the economic environment. A robust economy correlates to an increase in consumers' disposable income, increasing sales and
Macro Factors: • The Role of Technology :Technology not only creates new products for retail companies to sell, but also plays a major role in changing the way retail companies do business. Technological advancements such as the Internet offer retail customers additional shopping options. Technology also opens new retail markets, such as the Home Shopping Network and web-based retailers such as Amazon.com. Barcoding and computerized billing systems have improved the retail industry by allowing retailers to develop new processes that increase efficiency. Point-of-sale systems increase sales by allowing retailers to process cash, check, credit- and debit-card payments. • The advancement of technology coupled with a move towards “Green” buildings increase cost of development including investments in solar power capacity through to tweaks to refrigeration to repurpose the surplus heat generated
The Role of Government : Laws, regulations and other government policies can have a number of positive or negative effects on the retail industry. Government assistance, such as government-backed loans and subsidies, can help fledgling retailers grow or allow an established company to keep costs low for consumers. However, government policies can also hinder businesses by imposing regulations that increase costs, such as requiring the development and integration of new systems or procedures or establishing a minimum wage that small retailers may not be able to afford. The retail industry also relies heavily on government-supported road, rail and water transport infrastructure to move goods and bring customers to retail locations.
The Role of Economic Factors: Retail sales are driven by the economic environment. A robust economy correlates to an increase in consumers' disposable income, increasing sales and