"Location, location, location" is the number one rule in real estate, and often the most underestimated. Big data from connected devices and location-based apps provides insights on status quo and future trends of locations. [PropLocation]
Habidatum transforms this data into synthetic metrics in order to inform location-specific decisions in real estate and urban planning.
This is the second article in a set of publications describing our approach to location and its growing importance to property values estimation and revenue forecasting in real estate.
Location as a basis of a commercial real estate portfolio
Managing a commercial real estate portfolio as a resource of steady income requires a thorough understanding of global, national, and local trends that characterize the dynamics of demand for various types of properties in particular locations. The type of urban space and the value of the urban community both play a key role in determining the ability of a commercial real estate asset to generate income in the medium and long term,.
Although many market tendencies often become global trends, they are largely a result of local contexts (geographically and/or economically etc.), which in turn depend on the steady spatial characteristics of the urban environment – accessibility, mobility patterns, consumer behavior, value of housing stock, and employment in a socio-cultural context.
According to Bond University, 44.6% of commercial real estate portfolio managers rated the risks of location and local context as high and 18.5% – very high. This means that various neighbourhood/local characteristics for different types of commercial real estate become key factors in the ability of an asset to generate financial flow of a certain size and level of sustainability.
Full analysis here.
This analysis is part of a series of publications resulting from FIABCI's partnership with Habidatum.
Habidatum is a software and data analytics company, assisting policymakers and businesses in understanding the hyper-dynamic urban environment through advanced analytics of diverse data sources driven by machine learning and interactive visualization.
Habidatum operates as a gateway between the professional communities who require data-driven insights and data carriers.
The company was founded in 2014 by a collaboration between professional urban planners and digital designers. Since 2014, the company has worked in more than 20 cities globally including London, New York, Moscow, Dubai, Singapore, Pune, Denver, and Miami.