What s Next for Commercial Real Estate Leveraging Technology and Local Analytics to Grow Your Commercial Real Estate Business

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1 What s Next for Commercial Real Estate Leveraging Technology and Local Analytics to Grow Your Commercial Real Estate Business - A PUBLICATION OF GROWTH MAPS-

2 TABLE OF CONTENTS Intro 1 2 What Does Local Mean to You? The Benefits of Analytics 3 Current Gaps & Problems 4 Growth Maps: The Missing Link Conclusion

3 CHAPTER ONE What does local mean to you?

4 The Lingo: Definitions of Local Census Block Groups (BG s) are defined by the US government, and contain approximately 600 households. The BG is the smallest geographical unit for which there is reliable data available. There are 217,000 BGs in the U.S. and Growth Maps covers over 98% of them. Census Block Groups are identified by a series of unique numbers. BGs never cross the boundaries of states, counties, or major roads or rail road tracks, thus typically they define the "right side" and the "wrong side" of the rail road tracts. Without custom GIS programming, it is typically not possible to aggregate Block Groups (or Census Tracts) to all other types of geospatial levels, to Zip Codes, for example. Growth Maps technology blends together all geospatial levels, so they levels can be viewed instantaneously The BG trends are the most important variables to consider when investing and properly assessing risk. Census Tracts (CT) are clusters of Block Groups (BG) and typically have approximately 1,500 households. There are over 73,000 Census Tracts in the U.S. Census Tracts are designed to be relatively homogeneous units with respect to population characteristics, economic status, and living conditions, according to the U.S. Census Bureau. Census Tract boundaries are delineated with the intention of being maintained over a long time so that statistical comparisons can be made from month-to-month, quarter-to-quarter or year-to-year. Like Block Groups (BG), Census Tracts do not aggregate into Zip Codes, without custom GIS programming. Zip Codes are five-digit numbers established by the United States Postal Service, for the purposes of identifying a location and routing the mail to that location. Zip+4 is the five digit Zip Code, which indicates the state and post office or postal zone, plus four digits as an expanded code which denotes the box section or number, portion of a rural route, building, or other specific delivery location. There are approximately 41,000 Zip Codes in the US, and the boundaries of Zip Codes do not typically match with the boundaries of Block Groups or Census Tracts. The Zip Code may split a Block Group. MSA s (Metropolitan Statistical Areas) is a geographic area defined by the Office of Management and Budget (OMB). A MSA is a geographical region with a relatively high population density at its core and close economic ties throughout the area. MSA s are defined by the Office of Management and Budget (OMB) any vary by number. Currently there are 381 MSA s in the US. Often referred to as a "market" which is a huge area, a metropolitan area contains a core urban area of at least 50,000 people. Due to its very large size of MSA s, typically there is VERY LITTLE correlation to the local Block Group or Census Tract data or changes in any local market.

5 Location, Location, Location It s all about the location. Real- time local market analytics is the key to discovering profitable opportunities and ideal locations for own investments or for your customers. The growth of cloud servers, faster computing power, blending of offline and online public data, and new proprietary innovations can give your business an edge in both the commercial and residential real estate industries. Growth Maps evolved from a group of residential and commercial real estate investors, developers and brokers who have experienced first- hand the herculean effort and time required to find an opportunity, and huge risk of holding real estate short and long- term, not knowing when the next decline will occur, or where to reinvest. For the past four years we have been developing a proven solution that aggregates this crucial data at the Block, Track and Zip- Code levels. We wanted to make this data accessible and easy to use, so we've developed our system to express its output in easy to understand heat maps that can be displayed on both desktop and mobile devices Before we jump into the ways of leveraging local data and analytics, lets first talk about what local is and an explanation of the terminology.

6 The Benefits of Data of Real Analytics Time Data Analytics The benefits of real- time local analytics are vary by market segments and needs. What are your needs? Take a look below to learn what real time analytics can offer you. Home Owners The Quality of Life conditions is it a nice area? Neighborhood demographics They quality of the investment schools, growth, economic conditions, etc. Walking & driving distances Locate trending neighborhoods Investors Save time and reduce expense of time intense research Locate underutilized property in hot locations Improved decision making to buy and sell at the most advantageous time Maximize profits and returns Agencies & Brokers Maximize Efficiency Increased sales and commissions Locate the right listings & real buyers at the right price Become an informed salesperson and expert in the field Increase trust with clients Real Estate Industry RE data vendors receive missing data Utilize API to combine freshest data including demographics, economics and growth patterns Make instant conclusions with GIS mapping technology Improve product mix and offerings for increased revenue

7 The Benefits Current of Data Analytics RE Data Market Now that we how fresh data can perform, let s take a look at the difficulty in sourcing the data. While many tools and platforms exist, none of them can effectively pull all the data and the fresh data into one platform. 1. Search Engine Technology: Search Engines are designed to help advertisers, not necessarily users searching for useable data. They can be helpful in finding simple linear facts but not as discovering useful data. For example, if you search for top census tracts in San Francisco the results are a mixed bag of facts and definitions. 2. Real Estate Portals: These online sites, such as Zillow, are great for specific searches of MLS listings but do not include population trends, income or growth patterns. Pretty surprising, when you think about it, since for many homeowners, real estate and their home is their largest investment in their lifetime. And what drives prices, are changes in local economics and demographics - the leading indicators for future price changes. 3. Comparison Market Search Technology: These tools relay on data from the 2010 Census and others use scoring systems that are unreliable. They are easy to use, however, NONE of these systems have scoring systems based upon the local market or local growth patterns that have huge effects on the investment and ROI or any investment. 4. Mapping Technology Search: None of these websites have the ability to determine which local market is hot- or- not, which is growing, or a search ability where a user can find out if they should invest in any particular Block or Tract. 5. Driving Around: In real estate, what matters is NOT in our field of vision. And think about it. How many times would you have to drive around a Block, Tract, Zip Code or a 1,000 foot radius, to discover the latest economic or demographic growth patterns? The idea, that any consumer or real estate professional can drive around and thus learn about any local market, is a complete and false concept and idea.

8 What s The Benefits Next? of Growth- Maps Data Analytics is the Missing Link At Growth Maps we focus on growth patterns and what WILL affect future price changes. What matters in real estate is growth, and how this growth has and WILL affect future price changes. By pulling the most recent data and combining the technology of GIS mapping and complex, patent pending predictive modeling, Growth- Maps is the next generation of real estate technology. How we Do It We aggregate years of monthly datasets from 18+ reliable data brokers and sources (e.g.: FFIEC, BLS, Analytics firms etc.). We overlay this with hundreds of monthly variables like income growth, mortgage risk, new jobs index, population changes and others. We then build and test different predictive models on over 360,700 local markets, with combinations of advanced mathematical processes. This powers our unique technology, capable of delivering accurate local forecasts and the reason why a local market WILL go up or down in the future. We then deliver this in a fast and easy to use graphic interface data mapping format. We can also deliver customize reports to specific client s portfolio needs. Growth Maps combines up- to- date local monthly and/or quarterly demographic and economic data, and delivers this information to real estate professionals, in real- time. With Growth Maps, anyone from home owners to institutional investors can access accurate, reliable data on the factors that are critical to you or your business. Using the Growth Maps technology, investors can now access the most current local data online and make smart location- based decisions. This helps anyone know when to buy or when to sell or even where to relocate or build, and how to create wealth in any neighborhood. Growth Maps is an easy to use intuitive visual platform.

9 The Benefits Growth of Data Analytics Maps Data Growth Maps has assembled one of the most comprehensive platforms of real estate related local market data and insights. As a national analytics provider, we not only have the broadest coverage across all monthly and quarterly data sets, including: Job Growth Index Unemployment Rate Growth Median Income Growth Population Growth Migration Growth New Business Index Growth Vacancy Rate Growth Affordability Index Growth Quality of Life Crime Rating Additionally, we also have the deepest coverage in terms of hyper- local insights down to the Block Group, Census Tract, and Zip Code levels. We offer unique and compelling insights, such as: Growth Patterns Custom Heat Maps Custom Reporting Custom Filtering and Geo- targeting

10 Growth Maps Platform Remove the risk from your real estate decisions with Growth- Maps, the next generation in real estate data technology. Risk comes from not knowing what you are doing. Warren Buffet

11 See a Demo Contact us today and we will set up a free demonstration of Growth Maps Platform. CONTACT US EddieG@Growth- Maps.com