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What is a health ratio?

July 2, 2019

A health ratio can predict the probable success of a retailer. 
Dividing annual gross rent by annual gross sales gives a health ratio percentage.
What is a good health ratio?
Health ratios are affected by particular tenants and locations, but health ratios between categories of tenants look like this:
Grocery: 1%-5%
Restaurants: 6-10%
Fitness: 15%-25%
Apparel: 10-15%
How to determine potential sales.
Retail void analysis reports
Segmented demographic data
Analyzing key anchors 
Interviewing nearby tenants

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