Real Estate Journal — Mid-Year Review — June 24 - July 14, 2016 — 13C

M id A tlantic

A ppraisal

By Carlo Batts, MAI, Rittenhouse Appraisals Use the best tools for superior results

ver the past decade, the use of geographic information systems (GIS) in com- mercial real es tat e has g r o w n b y l e a p s a n d bounds. To- day, retail- ers, can use GIS to de- cide where to open new stores by analyz- O Carlo Batts Colliers declares record-breaking industrial demand PARSIPPANY, NJ — New Jersey’s industrial and office real estate markets are approaching mid-year 2016 with a mix of successes and challenges, according to Col- liers International Group Inc . The global commercial real estate services firm re- ports continued record-break- ing industrial demand and strengthening office leasing heading into the final weeks of the second quarter. E-commerce driven activ- ity led to 18.6 million s/f of industrial leasing in the first quarter, breaking the 12 mil- lion s/f record set during the fourth quarter of 2015. Col- liers International research findings show that big box leasing activity accounted for 12 transactions over 300,000 s/f during the first three months of the year – double the first quarter total. Net ab- sorption reached 9.2 million s/f, improving the availability rate by 120 basis points to 8.4%. New Jersey’s office market, on the other hand, has contin- ued to feel the impact of large blocks returning to the mar- ket. Following an uptick in tenant activity during 2015, the market stalled in the first quarter of 2016. “Office leasing activity to- taled 2.6 million s/f during the first three months of the year, representing the lowest level since the second quar- ter of 2014 and down 15% from the five-year quarterly average,” said John Obeid , senior director, Tri-State Suburban Research for Col- liers International. “As a result, the availability rate increased 20 basis points to 20.7%, and overall net ab- sorption totaled a negative 49,366 s/f.” n

ing traffic patterns, income, and demographic data over combined maps. Another ex- ample of the use of GIS is by pharmacies to complete their site selection process, using the GIS mapping platform to analyze sales trends. It has even allowed some of them to develop a flu index. Rittenhouse Appraisals uses GIS systems to help clients better understand the competitive market and opportunities of capitaliza- tion by providing geographic analysis of demographic data, intermixed with local real estate and municipal data.

Other services provided to market participants by Rit- tenhouse Appraisals using GIS data includes helping the client understand the strengths and weaknesses of a location. That is done by ar- raying data that is pertinent to the ownership and tenants. GIS systems allows users to make the most of a location and mix data from a plethora of sources – and lay it all out on a map. The Esri (Environmental Systems Research Institute) platform accommodates solu- tions to see where data is and how everything connects. It

helps businesses clarify data through the lens of a map, so they canmake better business decisions. Rittenhouse Appraisals uses Esri products to analyze real estate trends and activ- ity. They also use it with a mix of demographic data to project market changes and provide a map-based fundamental demand analysis. Rittenhouse Appraisals is based in Center City Phila- delphia and services the en- tire Mid-Atlantic Region. In addition to providing ap- praisal services, Rittenhouse also provides consulting, site

analysis, site visits and draw inspections. The staff at Rittenhouse Ap- praisals includes individuals who have attained the high- est designation available in the commercial real estate industry. They provide a custom analysis for proper- ties that include an in-depth examination of factors that are pertinent to its value and performance. Carlo L. Batts, MAI, is principal/chief appraiser at Rittenhouse Apprais- als. He can be reached at 267.314.8635 or c.batts@ rhappraisals.com. n

Serving the Philadelphia Metropolitain Area




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