{"id":275442,"date":"2019-10-15T05:15:00","date_gmt":"2019-10-15T12:15:00","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&p=275442"},"modified":"2021-11-19T13:57:59","modified_gmt":"2021-11-19T21:57:59","slug":"maximizing-real-estate","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/maximizing-real-estate","title":{"rendered":"Unseen: Finding the Hidden Value in Real Estate"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[1001,381312,282912,369792,365242],"tags":[141,281,388012,1261,388022],"department":[476822],"wherenext-category":[],"industry":[],"class_list":["post-275442","wherenext","type-wherenext","status-publish","format-standard","hentry","category-commercial","category-cxo-priorities","category-facilities","category-location-intelligence","category-retail","tag-drones","tag-location-intelligence","tag-property-owners","tag-real-estate","tag-smart-maps","department-data-and-ai"],"acf":{"short_description":"Drone landing pads, ride share areas, and other lucrative uses of real estate await property owners willing to think creatively.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"Boutique fitness clusters<\/a> are emerging in sleepy retail spaces around the country. Visitors to some local malls can spend 60 minutes sweating through a cycling class where they used to toy with Sharper Image gadgets. After class they might walk next door to an Instagram-worthy grocery store selling fresh juices and acai bowls\u2014right where an anchor retail store once sold suits and shoes."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"Article snapshot:<\/strong> As consumer preferences change, savvy executives are using smart maps to spy business opportunities and future proof their real estate.","snippet":""},{"acf_fc_layout":"content","content":"In North Carolina, a hospital is pioneering a new form of transportation, using drones to hasten the delivery<\/a> of medical samples\u00a0to a lab across campus. The program is shaving 30 minutes to three hours off test result times, which can be critical for some patients.\r\n\r\nWhat\u2019s the connection between mall owners creating an experiential economy and a hospital pioneering new transportation methods? They\u2019re part of a new generation of property owners tuned to new opportunities in a rapidly transforming world. As the economy and customers change, these owners are finding innovative ways to complement changing tastes, unlocking hidden value in their real estate.\r\n\r\nGregg Katz<\/a>, chief strategy officer for retail advisory firm TSCG (formerly The Shopping Center Group), believes the future of real estate will belong to those who leverage data and technology to predict the smartest use of every square inch of their space. \u201cI think the main driver is building, remodeling, and reusing space in a way that protects it for the future,\u201d he says. \u201cThe more flexibility, the better.\u201d\r\n\r\nTo stay ahead, creative companies are trend spotting with the help of location intelligence<\/a>. They are using reliable and predictive data to edge out competitors\u2014creating innovative uses for real estate in neighborhoods and regions most receptive to those changes.\r\n

Location Intelligence Unlocks New Value in Commercial Space<\/strong><\/h3>\r\nLocation intelligence is a form of business intelligence<\/a> gaining popularity in commercial industries. Fortune 500 companies analyze location-based data on smart maps to answer a host of questions, including, Where do people shop and how do they get there? How are merchandise and supplies moving from warehouses to storefronts and other pickup locations? Where do demographic changes indicate that we need to shift our product or service mix? For property owners, location intelligence can provide insights into the who, why, and how of commercial space utilization."},{"acf_fc_layout":"form","form_type":"aside","form_position":"Left","form_title":"CONSULT THE ESRI BRIEF","form_desc":"Stay up to date with this biweekly email featuring thought-provoking articles on location intelligence and critical technology trends.","form_button_label":"Sign up now","form_content":"https:\/\/go.pardot.com\/l\/82202\/2017-10-12\/jw1bmb","form_tag":"low-commitment-form\/sign-up-form"},{"acf_fc_layout":"content","content":"For instance, as car ownership in the US declines<\/a>, location intelligence helps identify regions and cities\u2014even neighborhoods\u2014where people are embracing alternative forms of transportation. That insight may inspire the owners of an office building or residential complex to allocate additional space for ride share pickup\/drop-off or install electric vehicle charging stations, ultimately attracting more tenants.\r\n\r\nLonger term, Katz says many owners are rethinking the design of parking garages so they can be repurposed if car ownership continues its slide.\r\n\r\n\u201cNow they're being built flat and with higher clearances,\u201d Katz explains. \u201cCircular ramps are being built on the outside of these spaces so that the parking lots can later be converted into apartments, offices, retail, or warehouse uses.\u201d\r\n

Societal Advancements Driving Changes in Real Estate <\/strong><\/h3>\r\nChanging attitudes toward car ownership and transportation are just one example of an economy in flux. As a recent Deloitte study<\/a> noted, cities are becoming smarter and residents more connected, forcing real estate owners and developers to be more aware of novel demands and preferences. In response, the smartest commercial owners are unlocking new value through ancillary services their buildings provide to the surrounding community.\r\n\r\nSome real estate owners are using location intelligence technologies such as a geographic information system (GIS) to spot trends and capitalize on them in several ways.\r\n\r\nUpdating Technology Infrastructure<\/em>\r\n\r\nCities are becoming smarter, but that doesn\u2019t mean every building has the technological infrastructure to meet a neighborhood\u2019s demands for faster connectivity. <\/em>Some property owners are using location intelligence to gauge local demand for advanced broadband connections<\/a> such as 5G and determine whether their property can host such equipment.\r\n\r\nA GIS-based smart map can help calculate how many residents and commuters use broadband services daily and identify areas with the highest bandwidth demands. It can also identify the slope and elevation of the land and the position of buildings and houses. That can reveal, for instance, how attractive a building\u2019s rooftop might be to a telco planning 5G infrastructure. It also gives the property owner the location intelligence it needs to negotiate wisely, given that many undervalue their buildings\u2019 worth<\/a>.\r\n\r\nDrone Delivery Flight Paths<\/em>\r\n\r\nDrones may seem like a distant reality, but this new transportation mode is quickly gaining commercial acceptance. In October, UPS, the logistics provider behind the North Carolina hospital project, received Federal Aviation Administration (FAA) clearance to expand drone service nationwide. A month before that, Walgreens announced a partnership with Alphabet subsidiary Wing<\/a> to begin delivering kids\u2019 snacks, cough medicine, and 100 other household staples via drone to homes in Christiansburg, Virginia.\r\n\r\nAs drone service expands across industries and geographic areas, GIS will help planners map ideal delivery routes<\/a> and ensure safe flight paths. It can account for FAA guidelines, such as no-fly zones, as well as aerial obstacles such as power lines and wind.\r\n\r\nAs consumers increasingly demand delivery when and where they prefer<\/a>, the prospect of drone drop-offs at office buildings becomes less fantastical by the day. Forward-thinking property owners have a chance to partner with drone providers to participate in\u2014and potentially profit from\u2014this growing opportunity.\r\n\r\nSustainable Urban Growth<\/em>\r\n\r\nIn the public sector, government officials are already leveraging location technology<\/a> to plan more sustainable urban environments. San Francisco city planners are using GIS to combat problems associated with boomtown growth<\/a>, including a rapidly rising cost of living and dwindling green spaces. With location intelligence, officials predict population migration patterns and utility demands to make better decisions about development and zoning into the future, all while maintaining the character and culture of the city.\r\n\r\nMalls Reimagined<\/em>\r\n\r\nAs traditional mall formats lose favor with consumers, some owners are using GIS to analyze the demographics and psychographics of area residents. With a better understanding of who lives nearby\u2014including how they choose to spend their time and how far they\u2019re willing to drive for certain services\u2014decision-makers are better equipped to find the right tenants for their space and attract a new generation of mall goers.\r\n\r\nIn another inventive use of real estate, creative executives are repurposing struggling malls as distribution centers, as in the case of Ohio\u2019s former Randall Park Mall<\/a>. Key to discovering which locations make good distribution centers is a supply chain analysis informed by location intelligence. Supply chain executives can model a delivery network on smart maps, revealing critical interdependencies such as, How does freight move from location to location, and at what intervals? Where does sorting happen? How is customer demand changing for certain SKUs in certain locations? With that insight, executives can make the right decisions to future proof their regional and national distribution strategies.\r\n

Predicting and Participating in Change<\/strong><\/h3>\r\nToday\u2019s property owners are stewards of a changing economy. From drones to 5G towers, fulfillment centers to hot yoga, revenue possibilities abound for those willing to rethink their property\u2019s identity.\r\n\r\nSpotting otherwise unseen cultural and economic shifts can point the way toward informed investments. For innovative executives, location technology grounds those investments in the demographic, economic, and spatial realities of the places where they do business\u2014now and well into the future."}],"references":null},"yoast_head":"\nEconomic and Consumer Shifts Point to New Uses for Office, Retail Space<\/title>\n<meta name=\"description\" content=\"Maximizing the value of real estate means using location intelligence to gauge the character of a place and sense ways to cater to its changing consumers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/maximizing-real-estate\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Unseen: Finding the Hidden Value in Real Estate\" \/>\n<meta property=\"og:description\" content=\"Maximizing the value of real estate means using location intelligence to gauge the character of a place and sense ways to cater to its changing consumers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/maximizing-real-estate\" \/>\n<meta property=\"og:site_name\" content=\"Esri\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/esrigis\/\" \/>\n<meta property=\"article:modified_time\" content=\"2021-11-19T21:57:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.esri.com\/about\/newsroom\/app\/uploads\/2019\/10\/wherenext-maximizing-real-estate-value-Card-826-x-465.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@Esri\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t \"@context\": \"https:\/\/schema.org\",\n\t \"@graph\": [\n\t {\n\t \"@type\": \"WebPage\",\n\t \"@id\": \"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/maximizing-real-estate\",\n\t \"url\": \"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/maximizing-real-estate\",\n\t \"name\": \"Economic and Consumer Shifts Point to New Uses for Office, Retail Space\",\n\t \"isPartOf\": {\n\t \"@id\": \"https:\/\/www.esri.com\/about\/newsroom\/#website\"\n\t },\n\t \"datePublished\": \"2019-10-15T12:15:00+00:00\",\n\t \"dateModified\": \"2021-11-19T21:57:59+00:00\",\n\t \"description\": \"Maximizing the value of real estate means using location intelligence to gauge the character of a place and sense ways to cater to its changing consumers.\",\n\t \"breadcrumb\": {\n\t \"@id\": \"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/maximizing-real-estate#breadcrumb\"\n\t },\n\t \"inLanguage\": \"en-US\",\n\t \"potentialAction\": [\n\t {\n\t \"@type\": \"ReadAction\",\n\t \"target\": [\n\t \"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/maximizing-real-estate\"\n\t ]\n\t }\n\t ]\n\t },\n\t {\n\t \"@type\": \"BreadcrumbList\",\n\t \"@id\": \"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/maximizing-real-estate#breadcrumb\",\n\t \"itemListElement\": [\n\t {\n\t \"@type\": \"ListItem\",\n\t \"position\": 1,\n\t \"name\": \"Home\",\n\t \"item\": \"https:\/\/www.esri.com\/about\/newsroom\"\n\t },\n\t {\n\t \"@type\": \"ListItem\",\n\t \"position\": 2,\n\t \"name\": \"Unseen: Finding the Hidden Value in Real Estate\"\n\t }\n\t ]\n\t },\n\t {\n\t \"@type\": \"WebSite\",\n\t \"@id\": \"https:\/\/www.esri.com\/about\/newsroom\/#website\",\n\t \"url\": \"https:\/\/www.esri.com\/about\/newsroom\/\",\n\t \"name\": \"Esri\",\n\t \"description\": \"Esri Newsroom\",\n\t \"potentialAction\": [\n\t {\n\t \"@type\": \"SearchAction\",\n\t \"target\": {\n\t \"@type\": \"EntryPoint\",\n\t \"urlTemplate\": \"https:\/\/www.esri.com\/about\/newsroom\/?s={search_term_string}\"\n\t },\n\t \"query-input\": {\n\t \"@type\": \"PropertyValueSpecification\",\n\t \"valueRequired\": true,\n\t \"valueName\": \"search_term_string\"\n\t }\n\t }\n\t ],\n\t \"inLanguage\": \"en-US\"\n\t },\n\t {\n\t \"@type\": \"Person\",\n\t \"@id\": \"https:\/\/www.esri.com\/about\/newsroom\/#\/schema\/person\/b890389919572d29641d24fc67eaf376\",\n\t \"name\": \"Chris Chiappinelli\",\n\t \"image\": {\n\t \"@type\": \"ImageObject\",\n\t \"inLanguage\": \"en-US\",\n\t \"@id\": \"https:\/\/www.esri.com\/about\/newsroom\/#\/schema\/person\/image\/\",\n\t \"url\": \"https:\/\/www.esri.com\/about\/newsroom\/app\/uploads\/2017\/04\/Esri-Chris_Chiappinelli_540x540.jpg\",\n\t \"contentUrl\": \"https:\/\/www.esri.com\/about\/newsroom\/app\/uploads\/2017\/04\/Esri-Chris_Chiappinelli_540x540.jpg\",\n\t \"caption\": \"Chris Chiappinelli\"\n\t },\n\t \"description\": \"Chris Chiappinelli is the editor of Esri\u2019s WhereNext magazine. 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