Direction Sensitive Wedge-Casting for Trade Area Delineation

Abstract

Executive Summary.Real estate market analysis begins with the correct spatial delineation of the geographic market trade area. The less accurate the spatial delineation, the greater the error introduced into subsequent analysis such as calculation of competitive supply, demand, and absorption. Advancements in geospatial technology provide for greater ease of execution of traditional methods of calculation of market areas; however, trade area estimation methods have not changed along with advancements in geospatial technology. This paper discusses the gap between geospatial technological advances and analysts’ needs for improved accuracy in spatially delineating trade areas. The solution requires a software interface that integrates complex statistical analysis with geospatial manipulation and visualization of geographic data. The algorithm is a composite of traditional methods and in that manner remains intuitive to decision makers.