Chapter 9 Trade Area Analysis and Site Selection
GIS is critical to the commercial real estate market. A less than optimal business location can make or break a business, no matter how good the service or product (ESRI, 2020).
Defining a trade area is an important step in any market analysis. This step identifies the boundaries that will serve as the basis for complex decision-making. Most importantly, it helps businesses explore potential opportunities to expand their business or customer base.
Acccording to Mappinganalytic, Trade area analysis and mapping tell you:
Where a store’s customers are coming from How many customers you have in a trade area Where to look for for more customers
9.2 Understanding Trade Area Analysis from a Technical Perpective
Before taking a deep dive into analytics, let’s look at how a geo-fencing app is designed to help track consumers within a certain radius:
Demonstrating a Geofence Application https://www.youtube.com/watch?v=NzD0QA0fYhU
Big data analytics tools and langugages like Python, R, and Tableau offer extensive capabilities in trade area analysis and geofencing.
Buffer spatial calculations allow you to perform trade area analysis in Tableau Desktop without any pre-processing of data. You can use buffer calculations to combine datasets and provide variable spatial selections.
##Exercise Perform a trade area analysis for your project client.
9.3 Readings & Resources
Why It Matters: Trade-Area Analysis and Site Selection https://courses.lumenlearning.com/wm-retailmanagement/chapter/why-it-matters-trade-area-analysis-and-site-selection/