Nik Sudhakar

Director, Digital Solutions, Asia

David Gerrelli
APAC Product Manager, Digital Innovation
Jonathan Hills
Senior Director, Research, Asia Pacific

WORK_IT: TECHNOLOGY | WORKPLACE | JOBS

GEOGRAPHIC INFORMATION
SYSTEMS: DEEPENING LOCATION
INSIGHTS
INTRODUCTION
Systems (GIS), which can transform raw information into data-
While location continues to be the leading factor
driven map-based visualisations illustrating complex analytics
determining leasing decisions, guiding investments and
and geospatial relationships, helping uncover hidden
assessing property values, the technology used to inform
opportunities and significantly enhancing the real estate
the site selection process has evolved considerably in
decision making process.
recent years.

No longer reliant upon traditional column and row

WHAT ARE GEOGRAPHIC INFORMATION
spreadsheets, occupiers, developers and investors are now
SYSTEMS?
deploying powerful new tools that integrate science into
GIS are software that combine cartography and databases to
location decisions and are revolutionising how information is
gather, analyse and present reference information on
connected to its geographic position.
computer-generated maps. First developed in the 1960s as
desktop-based software, many industries now utilise GIS via the
Spearheading this trend are Geographic Information
cloud and mobile devices.

CBRE Research | WORK_IT 1 @2019 CBRE,lnc.

GIS have a broad range of applications and are critical
decision-making tools due to their capacity to clearly analyse
and present data. Examples of how GIS are used include
identifying traffic accident hotspots; mapping habitats for
endangered species; and planning efficient transportation
routes for product distribution to customers.
The use of GIS is especially relevant to the real estate industry
due to property being geospatial in nature. Residential
brokers and buyers have been using GIS for some time to
visualise locations and evaluate them according to their
specific requirements. For example, GIS can harness data to
identify areas in which there is a higher concentration of
certain demographic groups such as retirees, millennials or
young children.
Other data such as home sales, income levels, transportation
networks and crime statistics can be overlaid to identify
optimal locations and inform purchasing decisions. Listings
can then be added to GIS maps enabling clients to visualise
the properties available for sale in desired neighbourhoods.
Figure 1: Drive time analysis
Source: CBRE, 2019
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In the office sector, GIS can evaluate how different locations
affect employees’ commute times and experience and
guide decisions around new office locations. GIS can
calculate the number of employees positively or negatively
impacted by the move and provide a detailed breakdown
of the degree of impact based on travel time (Figure 1).
Other commercial property sectors where GIS can add value
include retail. For example, a restaurant chain looking to
enter a new country could use GIS to identify top metro areas
and create heat maps of optimal locations based on criteria
such as average income, eating habits, typical spend per
visit and location of competing facilities. These maps can be
created by consumer analytics tools such as Calibrate by
CBRE, which analyses the digital footprint of mobile phone
users across different markets to generate big data relating
to consumer behaviour.
In the industrial sector, GIS can be used to identify prime
locations for distribution warehouses by ascertaining
distances to key infrastructure; planning routes to minimise
distance, time and cost; and calculating the number of
trucks required to deliver and unload goods to end-users.
2 @2019 CBRE,lnc.
Figure 2: GIS heat map
Source: CBRE, 2019
GIS PLATFORMS FOR REAL ESTATE
GIS has been widely used in the urban planning,
transportation and extractive industries for several decades
and has been led by companies such as Esri, which designs
and supplies GIS software products for desktop, server, and
mobile platforms.
One of the core strengths of CBRE’s Esri-based GIS platform,
Dimension, is its ability to leverage a wealth of proprietary
real estate data across all asset classes, market knowledge
and understanding of client requirements, and to use this
information to create highly-visual, leading-edge mapping
technologies.
This helps users visualise the impact of potential real estate
decisions and gives them the insight necessary to make
quicker and more educated decisions.
For example, a retailer reviewing its store footprint could use
Dimension to create a weighted formula from hundreds of
variables such as public data related to population and
neighbourhood income and integrate this with broker
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knowledge including competitor locations and market rents
to create a heat map. This map could then be used to
identify the best locations to open a new store; pinpoint
underperforming stores that may need to be closed; and
even ascertain the ideal merchandise mix. The retailer is then
able to better understand the market and position itself
accordingly.
This technology can also provide value for property owners
seeking to create narratives around specific assets and
opportunities. For example, a landlord wishing to fill a vacant
space could create maps based on the number of residents
and office workers in the vicinity of its mall, combine this with
income and spending data and then use this information as
a marketing tool to approach suitable retailers whose
offering caters to an appropriate demographic.
Should the same landlord wish to sell its mall, it could use GIS
to create marketing collateral highlighting the qualities of the
property, such as its connectivity to mass transit networks or
proximity to high-income residential areas.
3 @2019 CBRE,lnc.
WHAT NEXT FOR GIS?
GIS tools require specialists to create and manage
content, meaning that it is challenging to scale them
to many users. However, rapid progress is being made
towards creating automated tools that are entirely self-
service.
Self-service GIS tools enable any real estate
professional to take data such as property market
information, demographic trends, consumer spending
patterns and traffic models, and feed it into the
system. The platform can then display this information
in a visually compelling way, enabling anyone to
create persuasive data evidence to support real
estate decision making.
While it remains challenging to obtain data that can
be used to visualise a three-dimensional model of a
building, it is far easier for people to consume
information in 3D as it is how they process it in the real
world. CBRE therefore expects to see an increasing
emphasis on augmenting the visual capabilities of GIS,
rather than data collection and analysis.
Figure 3: 3D City Map Created by GIS
Source: CBRE, 2019
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With developers continuing to build ‘up’ as well as
‘out’, 3D GIS enables stacking plans to be visualised in
full 3D whilst providing greater context for landlords,
occupiers and investors as it relates to amenities and
other key services.
For example, this would enable GIS to play a key role
in the construction process as they could be used to
enrich developers’ understanding of an asset by
creating 3D models displaying detailed features such
as plumbing and electrical points.
While many firms are already utilising Building
Information Modelling (BIM) platforms, GIS maps can
paint a more comprehensive picture of both the asset
and the surrounding area.
This may involve on-site maintenance staff wearing
augmented reality headsets into which GIS maps are
uploaded, enabling them to more efficiently identify
and resolve building management issues.
4 @2019 CBRE,lnc.
Other potential applications include enhancing information
for investors by displaying 3D city maps showing precisely
how their asset connects to transportation systems and fiber
optic networks. 3D city maps are based on geospatial data
such as building heights and shapes which are collected by
aircraft and drones. Using this information, real estate
technology experts can generate entire 3D cities without the
significant costs involved in modelling them. However,
availability of this data varies and can be more expensive in
some markets then others.
Whilst developing 3D city maps has many challenges, the
future also promises other innovative opportunities for GIS
mapping technology.
Digital Twins, which are digital replicas of living or non-living
physical entities, are starting to gain traction with various
major software firms providing IoT and Digital Twin services
and platforms.
When combined with 3D GIS, it would be feasible to visualise
an entire portfolio of Digital Twins across a 3D city, providing
owners with an immediate view of how their assets are
performing and where any problems might exist.
Digital Twins also provide opportunities for smart building
services, which CBRE expects to initially emerge as insights for
owners and investors with future capabilities around
command and control for building systems.

CBRE GLOBAL RESEARCH

This report was prepared by CBRE APAC/EMEA Research Team, which forms part of CBRE Global Research –
a network of preeminent researchers who collaborate to provide real estate market research and econometric forecasting to
real estate investors and occupiers around the globe. For more information regarding this research report, please contact:

David Gerrelli
APAC Product Manager, Digital Innovation
David.Gerrelli@cbre.com

Bani Muttaqien
Senior Analyst, Advisory & Transaction Services
Bani.Muttaqien@cbre.com

Stephen Fleetwood
Head of Location Advisory, EMEA
Stephen.Fleetwood@cbre.com
WORK_IT:
TECHNOLOGY | WORKPLACE | JOBS
Nik Sudhakar
Director, Digital Solutions, Asia
As technology exerts a greater influence on all aspects
Nik.Sudhakar@cbre.com.hk
of our lives, this report series examines the various
dimensions and impacts of technological change in
Jonathan Hills
the workplace.
Senior Director, Research, Asia Pacific
Jonathan.Hills@cbre.com.hk

Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While
we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your
responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE
clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission
of CBRE.

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