MITCenter for Real Estate Questionnaire

Market Area: Salem, NH, and Methuen, MA

Real Estate Development Course and Project Objectives:

The objective of the Real Estate Development course is to expose students to the general skills, techniques, and processes associated with real estate development. Our project team is studying the retail food industry—specifically grocery stores—in an effort to better understand how grocery stores make decisions regarding site location. Information collected from this study will remain confidential and be used for educational purposes in the form of class reports and presentations.Any public use of the data, and the form in which the data are presented, must first be approved by the affected data provider.

For further information, please contact David Hansen ().

Subject Store:De Moula’s Supermarket

Address:265 S Broadway, Salem, NH

Questions:

In cases where the requested information would require an unduly amount of effort to collect, feel free to provide the data in the form in which you collect them. In instances where you provide data in a form different than that requested, please provide a quick explanation of what the data represent.

(1)In what year was the store opened? ______

(2)What are the hours of operation? ______

(3)What is the size of your store at this location (in square feet)? ______

(4)How many employees work at this location? ______

(5)How many different items do you sell at this location? ______

(6)What are the average weekly sales for this location? ______

(7)What is the income level of your typical customer? (Please mark all applicable levels.)

  1. Less than $10,000
  2. $10,000 to $14,999
  3. $15,000 to $24,999
  4. $25,000 to $34,999
  5. $35,000 to $49,999
  6. $50,000 to $74,999
  7. $75,000+

(8)Market area size. At what distance (radius) do the majority (75%) of your customers travel to shop in your store?

  1. 1 mile
  2. 3 miles
  3. 5 miles
  4. 7 miles
  5. 10 miles
  6. Other: ______

(9)On a scale of 1 to 4, with 1 representing the most common, please rank which modes of transportation customers use to travel to your store:

  1. Motorized Vehicle (car, truck, motorcycle, etc.) ______
  2. Public Transportation _____
  3. Pedestrian ____
  4. Taxi ____

(10)Who are your three biggest competitors in the area?

(11)What types of local regulations do you consider when selecting a new site? Why?

(12)If possible, would you consider expanding the size of your store in the next year? In the next 5 years? Other than the cost of redevelopment and real estate, what are the three most important factors when making this decision?

(13)Hypothetically, if you were considering to open an additional location, what benchmarks would you consider for the following:

  1. Store size (square feet): ______
  2. Number of households/population within 5 mile radius: ______
  3. Average household income: ______
  4. Average daily traffic counts on frontage street: ______
  5. Distance from a national chain grocery store (miles): ______
  6. Distance from a local grocery store (miles): ______
  7. Anchor in a strip center or stand alone? ______

(14)Continuing the hypothetical scenario, under what circumstances would you purchase a site in a defense position to keep a competitor from acquiring the site? Please list any factors you would consider.

(15)Lease structure.

  1. What is the length of your ideal lease (without renewal options)?
  2. Would the ideal lease contain overage charges (base rent + % sales rent)?
  3. Given the subject area’s market, how much would you expect to annually pay per square foot in a new lease? ______
  4. Note: if this ideal lease contains overage charges, please indicate what the base rent and expected percentage of sales would be.

We greatly appreciate your time in filling out this questionnaire. Thank you.