index TrueBroker (iTB)
Measures the value of the premises
index TrueBroker (iTB)
Measures the value of the premises
* Next Update: 01/31/2023
Source: TrueBroker
Until the month of December, we will publish FREE TrueBroker indexes, with the current month's consumption, to help you manage the reopening of stores, rents, anticipate decisions and reach agreements for the next month.
Our company has created a mathematical model, the TrueBroker Index (iTB), which measures the value of commercial premises, both their communication value and their commercial value, how people move in cities and what changes affect, and how much they affect, their consumption and the value of the premises. It allows analytical decisions to be made that respond to prior expectations in the purchase, investment and leasing of premises by owners, investors and brands.
From the outset, the R&D Department was tasked with answering the question of how to find out how much each brand could be billed at each location. The purpose was to eliminate the high level of error and turnover in the choice of brands in the stores, and to create a methodology that could easily scale the company's knowledge to anyone.
The idea was that the knowledge that our CEO had, as a researcher of consumer behavior for years around the world, could be turned into an easy-to-use tool that would allow scaling that knowledge so that everyone on the TrueBroker team could offer it to any client who wished to engage our expertise.
iTB Initials
iTB Initials
Initially, the index was created for internal use, applied to clients in specific operations, and out of our CEO's curiosity that we needed to understand why people did what they did in their consumption and to understand why each location had a different value, for our efforts and work to do things well and to help us internally in our decision making.
The index had the initial name of SMEx, and was used in large and far-reaching operations, such as the 2013/2015 operation of El mercado de Fuencarral, which was one of the record operations and a reference in the European real estate market, and which would not have been possible without the iTB.
It allowed us to demonstrate quantitatively, with data, to a major US fund, that the value of the property was much higher than they were forecasting, and put it in context so that they could compare it with premises that were in much more expensive areas. This allowed them to make a much higher estimate of the rents, almost double what the market was indicating, and thanks to this they obtained such a high result.
Initially, the iTB was only intended to help us better understand our business rationale and conduct successful operations, reducing uncertainty as much as possible.
Evolution
With the arrival of Covid, we received calls from several relevant clients who were aware of the index, asking for our help. Our founding principle states that we have a commitment to the people, our profession and the city of Madrid, and that made us realize that we should provide that help free of charge to the entire industry, across the board, including direct competitors, owners, investors and brands, with the sole purpose of helping the sector at such a difficult time.
Thus, we entrusted 90% of our resources to this task, during the entire Covid, and we prepared the first general indexes by areas of Madrid, since the index by streets was already done, and we began to disseminate them free of charge to the entire market.
Suddenly, the major national press, brands, investors and the market began to ask us for more help and information, and we began to provide it monthly in an open way, becoming, in a short time, a reference in decision-making during the months of Covid. The success surprised us, making us realize that we had a different tool that could be of value to the industry and that would allow us to innovate and transform the traditional model.
We started to receive calls from leading Spanish and European retail brands, requesting more information and hiring for the first time the TrueBroker index to choose their locations, reorder their stores, etc... Then, several brands requested to use the iTB for their expansion in Madrid, allowing them to successfully reorder their stores in the city and choose the locations predicting their potential sales.
Between 2020 and 2022 we have located streets from which people are leaving and streets to which people are leaving (emerging streets), thus varying the value of the premises. In 2022, with that verification confirmed, we launched the Truebroker Index (iTB) as a contractible product and expanded the budget and human resources of the i+i Department to increase its research.
It is an excellent tool for:
Knowing the upward and downward trends of the market.
Make variable rents that are not subject to the tenant's sales, but to the intrinsic oscillation of the real estate value.
Monitor the health of the asset portfolio in order to anticipate and reposition real estate investments, as well as to optimize the income that an owner/investor can obtain at any given moment in the face of unexpected situations in the life of the contracts.
Discover trends, perceive and identify changes in society and the environment and how they affect, and in what way, consumer behavior and, therefore, the value of the premises.
Measure and contrast the conclusions of our research.
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