The War For Tenants Is Costing REITS A Fortune – Nearly 5% of Gross Rental Income
Tenant acquisition costs for REITs have skyrocketed to a jaw-dropping 5% over the past few years, sending shockwaves through the industry!
With fierce competition for prime tenants, REITs are forced to throw exorbitant sums into skyrocketing digital ad costs, constantly fighting for attention in an overcrowded market. On top of that, they’re offering ridiculously generous incentives—rent cuts, extended leases, you name it—to secure tenants. The leasing process is dragging on longer than ever, pushing marketing expenses through the roof. It’s an unsustainable and costly game, demanding urgent action to find smarter marketing campaign measurement before your entire budget buckles under the pressure!
REIT Analytics & Marketing Challenges
REIT Data and Analytics
Leveraging Accurate Data and Avoiding Pitfalls: Relying on poor-quality data—such as in-person surveys, outdated camera data, or small, non-representative sample sizes—can lead to misleading insights and ineffective strategies. REITs must prioritize robust, actionable data sources and advanced analytics to inform decision-making and avoid costly missteps.
Measuring Campaign Success: Reporting the effectiveness of marketing campaigns can be challenging, as results may take time to materialize. Tools like foot traffic analysis and visitor behavior analysis are crucial for accurate marketing campaign analytics.
Location Analytics and Market Differentiation
Targeting the Right Audience: Identifying potential tenants, investors, and locations based on demographic profiling, location analytics, and visitor behavior can be complex, requiring precise data and segmentation.
Navigating a Competitive Market: With many properties available, REITs must differentiate themselves using location analytics and unique selling points to stand out in a crowded marketplace.
REIT Advertising Strategy and Messaging
Tailoring Strategies for Diverse Property Types: Different types of properties—residential, commercial, or industrial—require tailored strategies and marketing campaign analytics, complicating execution and messaging.
Limited Consumer Awareness and Education: Many potential investors and tenants may not fully understand REITs, necessitating efforts to educate the market about their benefits and investment potential.
OnSpot’s REIT Analytics & Advertising Solutions Platform
REIT advertising leverages a combination of REIT location analytics, foot traffic insights, and visitor behavior to optimize advertising efforts and drive strategic decision-making. By utilizing demographic profiling and foot traffic insights, marketers can promote high-potential locations and demonstrate an understanding of visitor behavior, ensuring that advertising campaigns speak to likely customers.
Marketing campaign analytics and measurement tools empower marketers to report on the success of their REIT advertising initiatives, fine-tuning strategies based on timely data. This approach not only elevates the precision of marketing efforts but also expedites engagement and conversion by aligning with the habits and preferences of actual visitors.
Make Data-Driven Decisions with Foot Traffic Analysis and Visitor Insights
With timely performance reporting, marketers can deliver actionable insights into what’s working and what’s not. OnSpot’s actionable insights will tell you how to quickly optimize multicOne of the key challenges for REITs is understanding visitor behavior and foot traffic patterns to optimize marketing and business strategies. By using advanced analytics, REITs can gain insights into which properties attract the most visitors and when peak foot traffic occurs. For instance, a location audit might reveal that one property gets more evening shoppers or maybe it’s more of a lunchtime crowd.
OnSpot’s commercial analysis tool helps REITs fine-tune their strategies, ensuring they are targeting the right audience at the right time and fully vetting their properties, ultimately leading to higher engagement and more effective leasing campaigns.hannel campaigns, adjust strategies, and meet campaign objectives, ultimately leading to better performance and higher ROI.
Gain insights into visitor patterns and peak foot traffic times to assess potential properties
Identify high-engagement areas within the property to focus marketing efforts
Adjust leasing strategies based on data-driven analysis of visitor behavior
Target the Right Residential Tenants with Precision Using Audience Data
REITs often face the challenge of targeting high-quality tenants effectively, as understanding their behaviors and location dynamics can be complex. By leveraging audience data, REITs can overcome this by segmenting potential tenants based on specific behavioral patterns, demographics, and geolocation. For example, if a property is located near a popular retail district, audience data can reveal which individuals frequent that area, allowing the REIT to target them directly with tailored marketing messages. This targeted approach ensures that marketing efforts reach the right audience, increasing conversion rates and minimizing wasted ad spend.
Segment potential tenants based on demographics, behaviors, and location analytics
Use location data to target tenants who frequent specific areas relevant to your property
Improve revenue by delivering tailored marketing messages to the right audience
Start Filling your Commercial Properties
Commercial and retail REITs can leverage data-driven insights, such as foot traffic patterns, parking utilization, and sales peaks, to attract visitors, optimize tenant performance, and secure the right business tenants for their properties. By identifying peak footfall times, REITs can guide retailers on scheduling promotions and events to maximize sales.
You can also use audience data to develop a tenant mix that compliments your property’s demographics, driving higher occupancy. Additionally, parking data can inform smarter space allocation, while tailored incentives for retailers help boost foot traffic and drive mutual success for the REIT and its tenants.
Attract tenants that match property demographics, promoting long-term retention.
Increase revenue using audience insights to help tenants optimize promotions and sales, boosting overall property value.
Strategically allocate resources and curate a tenant mix that attracts visitors and businesses.
Streamline Digital Advertising and Improve Efficiency with an Integrated DSP
Managing advertising across multiple platforms can be overwhelming for REITs, especially when trying to maintain consistency and optimize spend. The OnSpot Integrated DSP addresses this challenge by allowing REITs to automate and optimize ad buys across various media types from one unified platform. Using audience data, the DSP ensures that ads are shown to the right tenants—whether targeting business professionals or retail shoppers—at the right time and location. This not only streamlines the process but also maximizes advertising efficiency by leveraging real-time bidding and campaign adjustments to improve targeting and reduce wasteful spending.
Automate and optimize ad buys across multiple media types from one interface
Ensure precise targeting using audience data to reach the right tenants at the right time
Maximize ad spend efficiency with real-time bidding and campaign adjustments
Measure Campaign Effectiveness and Maximize ROI with Attribution Reporting
Measuring the effectiveness of marketing campaigns is a major challenge for REITs, particularly in reporting how digital ads translate to real-world actions like foot traffic or leases signed. Attribution reporting solves this by providing clear connections between marketing efforts and outcomes. For example, a REIT can measure how many individuals who saw a targeted ad actually visited the property or signed a lease. This insight enables REITs to assess which campaigns are most effective and optimize their marketing spend, ensuring that they are investing in the channels that provide the best ROI.
Report on the direct impact of digital campaigns on foot traffic and lease signings
Optimize marketing spend by identifying the most effective advertising channels
Use attribution data to fine-tune campaigns and improve overall ROI
Marketing Strategies for REITS
Utilizing Location-Based Data for Residential Tenant Targeting
Many REITs struggle to target tenants based on location dynamics accurately. By leveraging foot traffic insights and location analytics tools, REITs can target tenants at key moments when they’re most likely to convert.
For example, analyzing peak foot traffic times in nearby competing properties or capturing data on the movement of potential tenants between locations can enable REITs to identify the best time to market or adjust lease offers.
Integrating Competitor Foot Traffic Insights to Optimize Ad Placement
Many fail to capitalize on competitor foot traffic insights, which can reveal hidden opportunities for REIT advertising.
By analyzing foot traffic and visitor behavior at competing properties, REITs can gain insight into tenant preferences and market trends, identifying high-demand locations or underutilized spaces.
Advanced Data Integration to Create Hyper-Personalized Marketing Campaigns
REITs face difficulties in crafting marketing messages that resonate with specific visitor segments. By integrating demographic data with a foot traffic analysis, REITs can create hyper-targeted, personalized campaigns.
For example, a REIT could identify tenants who frequent both retail and office spaces in nearby urban areas and create a custom leasing offer that appeals to their lifestyle and business needs
60% Of REITs Ignoring Foot Traffic Analysis Data? You Might Be Leaving Millions On The Table.
Many REITs do not fully leverage foot traffic analysis tools, and if they do, the data leaves a lot to be desired. A report by S&P Global Market Intelligence indicates that investors can use foot traffic insights to identify REITs managing properties where activity remains robust and those that own properties attracting visitors with favorable demographic characteristics. This suggests that not all REITs are effectively utilizing foot traffic insights to inform their marketing and investment strategies. And none of that matters if you're using sub-par data from in-person surveys, cameras, or small sample sizes. OnSpot is here to help you drive revenue with clear and actionable marketing campaign measurement.
