OPERATIONS
CRE KPIs
What to Consider When Establishing Commercial Real Estate KPIs YOU CAN MITIGATE RISKS AND BETTER RESPOND TO MARKET CONDITIONS BY ESTABLISHING AND MONITORING KPIs ALIGNED WITH YOUR BUSINESS GOALS.
By Andrew Flint
W hen it comes to commercial real estate, businesses and investors must consider a number of risks, including economic uncertainties, inflationary pressures, and even business growth itself. Brick-and-mortar retail, for ex- ample, is on solid footing right now.
But, a shift in consumer confidence and economic growth stagnation could lead to a downshift in the market. Retail sales growth saw some softening in the fourth quarter of 2022, and further slowdowns are expected in most major markets throughout the year. Although laying
off personnel, limiting stock on hand, and enabling other cost-cutting measures can help retailers weather an economic storm, the physical space itself can get pricey when in-store sales are on the decline. Inflation can also be problematic for the real estate side of almost
46 | think realty magazine :: may – june 2023
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