This company is selling a software-based, decision-support tool that helps users in the retail leasing industry to determine (or "value") what rent they should be paying / charging for a specific retail lease. Since most retail leases run for a minimum of 3 years and may extend up to 20 years, getting the value right can be the difference between business success and failure.
Both retail tenants and landlords (or their advisors) can benefit by using this step-by-step method that incorporates all of the steps a competent Specialist Retail Valuer would follow in making a retail lease valuation.
How does it work? The user enters standard information contained in every lease (for their own lease and those of similar leases) as basic evidence, as well as important numbers from the retail business' P&L. Additional comparison evidence and benchmark data about overall industry performance is collected automatically from external data sources such as the Australian Taxation Office, and all of the information is analyzed using a unique methodology which blends property and business economics with accountancy and valuation principles. The result of this analysis is displayed in a series of straightforward graphs and commentary that provides more standardized and accurate information upon which to base the lease valuation.
Our goal is to provide a decision-support tool that can be used by everyone involved in retail leasing industry and also one that promotes "fair and equitable" lease outcomes for any given retail lease location/business type.
Initially, the software will be marketed in Australia to our database of retailers of all sizes, franchisees and professional advisors. We think it will be particularly useful to small retailers (those with one or two stores) when they are dealing with large, corporate landlords such as those who manage major shopping centers. We also foresee a good market within legal and accountancy firms as it would allow them to provide more substantial guidance before needing to bring in expensive external expertise (in the form of a Specialist Retail Valuer).
Although we have selected "Accounting & Financial" as our industry, it might also be "Retail" depending on your perspective.