AI Site Selection: Geospatial Data Analysis Guide

published on 27 October 2024

Want to pick better business locations using AI? Here's what you need to know in 60 seconds:

What AI Site Selection Does Key Benefits
Analyzes location data 2x faster site selection
Predicts site performance 10% higher income
Spots market trends 83% fewer errors
Evaluates risks 60% faster deals

Key tools you'll use:

Tool Cost/Year Best For
LandGlide $100 Basic property info
LandID $1,000 Custom mapping
Plotzy $2,400 Zoning analysis
AccuSite Custom Traffic patterns

Quick facts:

  • 72% of real estate owners will use AI tools in 2024
  • AI checks hundreds of development options for one site
  • Teams find good locations in half the time with AI tools
  • Wrong locations cost 3x more to fix than to open

This guide shows you how to:

  1. Collect the right location data
  2. Use AI tools to analyze sites
  3. Avoid common mistakes
  4. Make data-driven location decisions

Want the complete playbook? Keep reading for step-by-step instructions and expert tips.

Basics of Geospatial Data Analysis

Let's break down how location data works and what it can do for your business.

Core Components

Here's what location data analysis looks at:

Data Class What It Shows How Businesses Use It
Points of Interest Stores, landmarks Spot gaps in market coverage
Property Buildings, land lots Check site conditions
Mobility How people move Pick high-traffic spots
Demographics Who lives where Find your customers
Environment Land features Spot possible problems

Three Key Data Types

You'll deal with these data formats:

Type What It Is Where You See It
Vector Map objects Street maps
Raster Image grids Aerial photos
Table Spreadsheet data Population stats

Here's what makes this powerful: ATTOM tracks 155 million property boundaries, covering 99% of the U.S. They map 750,000 neighborhoods across 600 metro areas.

AI's Role in Location Analysis

AI turns location data into business decisions. Look at these numbers:

  • Downtown Cincinnati: Foot traffic DOWN 59% since 2019
  • Texas dominates growth: Owns 9 spots in top 15 fastest-growing U.S. cities
  • Buffalo's comeback: Back to 84% of pre-2019 foot traffic

AI spots patterns in:

  • When people visit
  • How far they'll travel
  • Where competitors sit

Pro tip: Mix your business data with outside sources. Combine your sales numbers with market research and government data. This gives you the complete picture for picking your next location.

Tools for Site Analysis

Here's a look at the top AI-powered tools for smarter site selection.

Maps and Charts

These tools help you pick better locations:

Tool Price/Year Key Features Best For
LandGlide $100 - Basic property info
- Mobile access
- Easy interface
Small teams starting out
LandID $1,000 - Custom maps
- Team sharing
- Map notes
Mid-size brokers
Maptive Custom - Google Places data
- Real-time updates
- Property comparisons
Large agencies
MapRight Custom - Mobile version
- Sales analysis
- Property database
Field teams

Here's the thing: Pick a tool that fits your daily work. If you're always on the road, mobile access beats fancy desktop features.

Plotzy

Plotzy

Plotzy makes site selection FAST with these features:

Feature What It Does
Parcel Search Find properties by allowed use
Zoning Analysis Get instant zoning answers
Owner Info Access contact details
Property Reports Generate detailed site info

For $200/month, you get:

  • No limits on property searches
  • Quick zoning filters
  • Owner info at your fingertips
  • Fast site decisions

Want to know something cool? Teams with mapping software find good sites in HALF the time.

AccuSite by MapZot.AI takes it up a notch:

  • Keeps tabs on 150 million parcels
  • Covers almost every U.S. county (98%)
  • Shows how people move around
  • Connects weather to visitor patterns

Here's what makes AccuSite different: It tracks billions of customer movements to show REAL shopping patterns. This helps you see how new stores might perform in different locations.

4-Step Guide to Location Analysis

Here's how to pick the perfect spot for your business using data (and avoid expensive mistakes).

Getting Your Data Ready

You need 4 types of data to make smart location decisions:

Data Type What to Look For Why It Matters
Census Data Population stats, income levels Shows who lives nearby
Traffic Data Vehicle counts, peak hours Shows potential customers
Market Info Competitor locations, sales data Shows market gaps
Zoning Laws Land use rules, building codes Shows what's possible

Quick tip: Always check when your data was collected. Old numbers can lead you down the wrong path.

Running the Analysis

Let's break this down into 3 simple steps:

1. Map Your Market

Create a heat map showing:

  • Where people live
  • How much money they make
  • How they move around
  • Where your competitors are

2. Score Each Location

Factor Points (1-10) Weight
Market size ___ 30%
Access ___ 25%
Competition ___ 25%
Zoning fit ___ 20%

3. Look at Travel Times

Here's what a London hospital found:

  • People who can drive there in 30 mins: 718,838
  • People who can take transit in 30 mins: 311,901

Reading the Results

Here's what your numbers should look like:

Metric Good Score Warning Signs
Market Coverage >70% of target <40% reach
Competition <3 similar sites >5 nearby
Growth Rate >3% yearly <1% yearly

"CARTO helps us analyze hundreds of location factors - from who lives where to where people spend money. This gives us an edge when bidding on properties and helps us move faster." - Data Scientist at American Securities

The numbers don't lie: Businesses that use location data see 4% better returns on high-end commercial spots.

Plotzy's tools can help you:

  • See what you can build
  • Check zoning rules
  • Find property owners
  • Make quick reports

Bottom line? You'll pick sites twice as fast and dodge costly mistakes.

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AI Methods for Better Site Picks

AI helps pick store locations by crunching numbers and finding patterns humans might miss. Here's how it works:

How AI Learns Patterns

AI looks at what made past locations succeed or fail. It's like having a super-smart assistant that never gets tired of checking data:

Data Type What AI Looks For Impact on Success
Sales History Monthly revenue trends +/- 17% variance
Demographics Population shifts Market size prediction
Traffic Flow Peak hours, slow times Customer access
Local Economy Business growth rates Long-term viability

The numbers don't lie: 72% of real estate owners now use AI tools for site selection, according to Deloitte's 2024 study.

"AI site selection leverages data-driven insights to streamline the real estate development process." - Andrew Breeding, Senior GIS Programmer at Langan

Future Site Performance

But AI doesn't just look at what's happening NOW. It predicts future success by analyzing:

Prediction Type Data Sources Time Frame
Market Growth Building permits, business licenses 1-3 years
Risk Factors Weather patterns, economic indicators 5+ years
Customer Base Population trends, income changes 2-4 years

Let's look at some real numbers from Kirkland's Home:

  • Stores with AI scores above 65/100 make 17% more money
  • Most stores score 50/100
  • It costs 3x more to close a store than open one

"Generative AI can cycle through ideas and give you different iterations of that idea." - Adam Kent, Design Tech Specialist

Here's what makes AI so good at this job:

  • It spots patterns in HUGE amounts of data
  • It catches problems before they happen
  • It can test hundreds of scenarios in minutes

Bottom line: AI works best when it helps people make smarter choices - not replace them.

Tips and Common Mistakes

Checking Data Quality

Bad data = bad decisions. Here's what you need to check:

Quality Check What to Look For Why It Matters
Visual Inspection Points match basemap locations Wrong locations = wrong sites
Alignment Check Roads and railways line up Makes or breaks traffic counts
Boundary Check Property lines match reality Affects what you can build
Time Check Data age and updates Old data = wrong decisions

These tools help catch problems FAST:

  • ArcGIS Data Reviewer spots errors
  • QGIS Topology Checker finds boundary issues
  • GeoValidator tests data rules

"Follow these steps to ensure you stay on the path most appropriate for your business." - Svetlana Sicular, Gartner Analyst

Mistakes to Watch For

Here's what goes wrong (and how to fix it):

Mistake Problem Solution
Old Records Market data lies to you Check multiple sources
GPS Setup Errors Points land in wrong spots Use WGS84, 4+ satellites
Server Problems Geocoding fails Limit cores to 1/4 locators
Missing Data Miss good sites Fill gaps with solid sources

When you're collecting GPS data:

  • Use decimal degrees
  • Turn on WAAS/DGPS
  • Wait for strong signals

Here's what mistakes cost you:

Error Money Impact Time Lost
Bad Location 3x more to move 6-12 months
Missing Property Info +15% purchase price 2-3 months
Wrong Zoning +40% project time 4-8 months

Bottom line: Check your data NOW, not later. Set up quality checks BEFORE you start analyzing.

What's Next in AI Location Analysis

AI site selection is getting faster and smarter. Here's what the data shows:

Analysis Type Current Speed 2024 Projection
Sales Forecasting 30 seconds 5 seconds
Market Analysis 2 hours 15 minutes
Property Evaluation 4 hours 45 minutes

The numbers tell a clear story:

  • 72% of real estate owners will invest in AI tools next year
  • Companies see a 10% boost in net operating income after using AI
  • Analysis time drops by 83%

But that's just the start.

New AI tools are changing the game:

Tool Type Function Impact
GAN Models Creates realistic market scenarios 35% better accuracy
Smart Contracts Automates property deals Cuts closing time 60%
IoT Integration Tracks building performance 15% energy savings

Here's what experts say about these changes:

"AI does not replace the human factor. It's a tool, and right now, you can't rely on just the tool. It's there to augment how you work, not to replace you." - Eric Wittner, Senior Project Manager

Want to see AI in action? Look at The Edge in Amsterdam:

  • AI controls lighting and temperature
  • Tracks how people use spaces in real-time
  • Cuts energy bills by 25%

By 2029, AI in real estate will be a $1335.89 Bn market. These tools keep getting better at:

  • Spotting market trends
  • Finding good investments
  • Picking locations
  • Monitoring buildings

What's coming in 2024:

  • More AI-IoT connections
  • Better energy monitoring
  • Smarter space use
  • Quick market insights

Wrap-Up

Here's what AI site selection delivers right now:

Key Area Impact Results
Data Quality 83% fewer errors Faster analysis
Location Analysis 72% adoption in 2024 Better decisions
Market Insights 10% income growth Smart investments
Risk Assessment 60% faster deals Fewer mistakes

The process is simple:

  • Start with clean data
  • Compare sites with grids
  • Mix AI with human know-how
  • Stay on top of markets

Want to jump in? Here's your toolkit:

What to Do Tool Why
Set Up Data S2/H3 Grids Quick analysis
Study Markets Map Tools See patterns
Check Risks AI Systems Spot problems
Track Success IoT Tech Watch results

"AI won't take your job. It's just a tool that makes your work better, not a replacement." - Eric Wittner, Senior Project Manager

Some quick wins:

  • Pick your accuracy (10m for cities, 1m for spots)
  • Keep data simple to save money
  • Check how people move
  • Watch where people go

Look at Texas - it's got 9 of the top 15 growing U.S. cities. But California? People are leaving - up 12% since March 2020.

Your AI needs to watch:

  • How people move
  • Market shifts
  • Building types
  • Power costs

The bottom line? AI site selection works. Companies pick better spots, faster, with less risk.

FAQs

What is site selection in real estate?

Site selection in real estate uses data to find the best property locations. Here's how it works:

Component Purpose Example
Data Analysis Find market gaps Vestar Capital used location data to bring a brewery to their Northern California shopping center
Market Research Check demand NY grocers analyze zip code competition
AI Tools Make faster decisions Zillow spots ready-to-buy customers from website behavior
Location Study Monitor traffic Shopping centers track how customers move

In 2018, AI made its first big mark in site selection. An AI system spotted two Philadelphia properties by crunching data - leading to a $26 million deal BEFORE these properties went public.

"Site selection connects business success with market opportunities by putting properties in the right places." - Unacast

Here's what the numbers tell us:

Metric Value Year
AI Spending $97.9 billion 2023
Revenue Boost 63% of companies 2023
First AI Deal $26 million 2018

Site selection looks at:

  • How buildings shape up
  • What the land offers
  • Where markets are heading
  • What customers do
  • Who else is nearby

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