Geospatial analytics are being applied to transaction patterns in Southern California industrial markets, using algorithms that identify "market outliers" that present unique investment opportunities in one of the nation's busiest industrial regions.
Testing the theory that every real estate transaction provides a data point in a broader spatial pattern that can paint a picture that reveals where the outliers are, CBRE Econometric Advisors (CBRE EA) mapped all the industrial property sales in SoCal over the past two years.
CBRE EA applied geospatial analytics to identify trading patterns. The company says it algorithmically identified 47 deal clusters, which it numbered on a map, identifying which clusters had deals exhibiting low price and high rent, high price and low rent, and areas where prices and rents were low, and other possible permutations.
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