Technology and Commercial Real Estate: Part 2 THE SITE TO DO BUSINESS

Written By Kelly Lynch

By Bill Adams, President, MBA, CCIM, CRB, ALC

This is the second in a series of articles on Technology in Commercial Real Estate (CRE). The first article dealt with technology in the 1970s. This article and those that follow will deal with what CRE practitioners have available to them today and what the future might look like.

At Adams Commercial Real Estate four of our brokers have the prestigious CCIM designation. This designation is often called the PhD of commercial real estate. Members of the CCIM Institute have access, as part of their dues, to a state-of-the-art website, The Site to Do Business (STDB), powered by ESRI, the gold standard in demographic information. STDB is a commercial real estate and location analysis tool designed specifically for professionals in the CRE industry. Powered by advanced data analytics and Geographic Information Systems (GIS), it provides a suite of tools and data sets to help users make informed decisions about property investments, development, and market opportunities. Here are some of the key benefits of STDB:

1. Data-Driven Market Analysis

  • STDB provides robust demographic, economic, and consumer data. This includes data on population growth, income levels, average household incomes, spending habits, and other key metrics essential for understanding market demand and customer preferences.

  • Users can leverage this information to assess market trends, identify growth opportunities, and determine the viability of real estate projects.

2. Location Intelligence and Mapping

  • With GIS technology, users can visually analyze the geographic aspects of a market, such as traffic patterns, distances from key locations (like highways or retail hubs), and proximity to competitors.

  • Mapping tools allow for custom overlays, enabling users to view multiple data layers (e.g., income and population density) to make strategic decisions based on spatial analysis.

3. Customer Segmentation and Targeting

  • STDB offers tapestry segmentation tools to identify specific demographics within a market, such as age groups, income brackets, or lifestyle preferences. This helps in understanding target audiences better, allowing for more targeted marketing and property offerings.

4. Site Suitability and Location Selection

  • By analyzing factors like accessibility, visibility, and proximity to target customer bases, The Site to Do Business aids users in identifying the most suitable sites for commercial real estate projects. This is crucial for reducing risk and increasing the likelihood of property success.

  • CCIMs can use gap analysis tools to narrow down suitable locations, saving time in the initial stages of site selection.

5. Detailed Reporting and Presentations

  • STDB allows users to generate detailed reports that compile data, maps, and analysis. These reports can be used to present findings to clients, investors, or stakeholders in a professional format.

  • Customized reports save time and provide a clear, comprehensive view of the research, increasing transparency and confidence among stakeholders.

6. Competitive Analysis

  • The Site to Do Business helps users evaluate the competitive landscape in a particular area, such as the presence of competing businesses, density of similar establishments, and potential saturation points. This insight can guide positioning strategies and influence pricing or marketing efforts.

7. Investment Risk Management

  • With access to comprehensive market data and advanced analytical tools, users can make more informed, data-driven decisions, ultimately reducing the risks associated with real estate investments.

  • By analyzing multiple factors, including economic and demographic trends, users can assess potential risks early and adjust their investment strategies accordingly.

8. Time and Cost Savings

  • STDB consolidates a wealth of information that would otherwise require multiple sources and substantial research time. Centralized access to data and tools can reduce costs and speed up the decision-making process. In my earlier post looking at demographic analysis in the 1970s, I mentioned the cost per report, around $150.00, and the speed in receiving the report, usually several weeks. If a client asked you to change the variables in a report, then it would cost another $150.00 for the new report along with a wait of several additional weeks to receive the data.

9. Support for Various Real Estate Sectors

  • STDB caters to a range of commercial real estate sectors, from retail and office space to multi-family, hospitality, industrial and special use properties. This makes it a versatile tool suitable for various types of real estate professionals and investors.

Access to The Site to Do Business gives our Adams Commercial CCIMs a competitive advantage in the commercial real estate marketplace. The data, information and reports mentioned above are at our fingertips to better serve our clients in their decision-making process.

*Bill Adams, CCIM of Adams Commercial Real Estate in Atlanta, GA collaborated with ChatGPT on this article.

Kelly Lynch
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