The Problem

Everyone in business who works with data to gain an edge in their respective marketplaces likes to fancy themselves a “water diviner” akin to Michael Lewis’ protagonists in Moneyball. Thanks to the widespread popularity of the film, this analogy works. However, it is overused and generally applied over too wide a spectrum of business cases. It’s too easy to run around telling people “we are the Moneyball of commercial real estate.”  What do we mean by this analogy and how are we changing the way people do business within our ecosystem?

 

Context

Before someone can understand how we are borrowing themes from Moneyball, it’s important to go over the broad strokes. The author, Michael Lewis, makes the observation that the goal of a ball club should be to buy wins, not to just buy and invest in players. In more specific terms, a player’s on base percentage and slugging percentage were undervalued and underutilized predictors of runs scored.  This meant a scout could recruit winning teams and spend less money while increasing a team’s overall ROI.

To bring it home, Billy Bean (the data guy in the film) discovered behavioral patterns that made the players unique in statistically observable ways. So using the Moneyball analogy at IdealSpot is about using our data to find the patterns across the real estate universe, in statistically observable terms, to make the best real estate decisions possible.

We utilize the arbitrage mindset through the lens of assessing unique behavioral patterns to establish identity. This allows us to stitch together a narrative that is unique to every business within the commercial real estate ecosystem to highlight the components for arbitrage.

The Solution

At IdealSpot, we live and breathe data science. By looking across all locations/assets, we can tease out the correlated behavioral patterns that persist across all our data sets. This establishes a success archetype that defines success for any business model. This archetype can then be applied to any geographical region throughout the US to identify highly attractive opportunities for acquisition or expansion efforts. This process utilizes a combination of our in-house data scientists and our on-demand platform.

Process

  1. Conduct a correlation study of all locations to tease out the success archetype and key performance indicators.
  2. Upload the KPIs to our web-based platform to establish a watermark for comparing all locations and expansion regions.
  3. Utilize the IdealSpot platform to make incisive, data-backed decisions on commercial real estate assets.
Brian Gourley

About Brian Gourley

Brian Gourley is a Partner and Chief of Strategy and Business Development at IdealSpot. Mr. Gourley spent the past 5 years creating, building and managing a $122 million hedge fund, Troubadour Capital (Austin, TX). The strategy used data science to extract value from inefficiencies in the long-tail of the $3.7 trillion municipal bond market. As the proud father of 3, Brian has traveled to over 40 countries including a 1 1/2 year round-the-world backpacking trip. Brian looks forward to bringing his experience monetizing data to clients of IdealSpot. View LinkedIn Profile

Your on-demand data and mapping platform

With our easy-to-use, all-in-one platform, anyone can get actionable location intelligence within 5 minutes of signing up.

Request a demo