Location Risk Score

Habidatum scores real estate locations by their commercial potential/risk considering people and business concentration in their catchment areas.

• So, first, we define property locations’ catchment areas by analyzing up-to-date travel time to them from other places during rush and non-rush hours. The catchment areas are specific to property types, so the ultimate scores are different for a location if considered as a spot for a shopping mall vs. an office building, for example.
• Then, we describe each and every place within these catchment areas by how many people and businesses are there. People's concentration and mobility are measured using hyperlocal GPS data, and business concentration means how many commercial points of interest there are in total, and how diverse they are. Altogether, the data we use includes walkability and transit scores, foot traffic, dwell time, statistically normalized occupancy by building polygons
• In the end, we sum up the values of all places within the catchment area and score these values on a scale from 1 to 100 within the target geography. We use two types of benchmarks for it: regional and national, which is important for properties and portfolios of different natures.

The scoring is seen over time and if there is a substantial change, it means that not only the property occupancy itself has changed, but its broad catchment area has lost or gained visitors and new businesses.

It is used for comparative analysis, market screening and portfolio monitoring. There is also a derivative calculation showing the location’s suitability for certain types of properties, i.e. its best use, best use’s match to the current use, and location’s flexibility to change uses (“location liquidity rate” – the number of suitable uses as compared to all possible options – the higher it is, the more optionality the property has to adapt to changing demand and market conditions).