Real Estate Technology: GIS Applications Changing the Real Estate Business

Developed in the 1960’s for the Canadian Government, GIS was adopted quickly across the U.S.  It was initially adopted for use in agriculture, but was quickly implemented into a much broader array of applications. Simply put, GIS is a computerized method for collecting, storing, retrieving, transforming, and displaying spatial data. It transforms data base management systems into spatial maps. Anything that can appear on a map can be encoded into a computer and then compared to other maps. Using GIS as a tool in the real estate industry enables users to select a site for commercial or residential investment and generate in-depth reports on the selected site in a matter of minutes.

Site Tech System’s proprietary OneSource application offers a variety of GIS–based solutions designed for all segments of the real estate business such as map–based content management and sophisticated investment analysis.

 "Site Tech’s OneSource application saves a phenomenal amount of time, legwork and redundancy on the part of the real estate professionals,” states Site Tech Systems’ Director of GIS Eric Schmidt, GISP. “Through OneSource,

we are able to deliver the benefits of GIS to the non-GIS user. Our subscribers receive all of the benefits without needing the expertise or expense of GIS software. OneSource has the potential to change the face of the real estate business.”

According to Schmidt, GIS allows the user to integrate a wide variety of data into one, common format—a map. GIS presents a visual representation of all the information affecting the desirability and value. It provides a far more accurate picture of a property's suitability to the clients needs. The GIS-based OneSource contains a wealth of information that it searches during queries and displays once that information matches the criteria requested. Massive amounts of data in OneSource’s service areas are immediately interpretable.

“The OneSource system is so good that I built my office comp file around it. Utilizing OneSource’s data formats that distinguish improved from unimproved sites, I add property layer exhibits to my property files that help me evaluate property conditions that ultimately impacts value,” says appraiser Buddy Magrath, MAI, Magrath Appraisal. “It allows me to locate and collect quality comps, in a matter of minutes I can work with, and that save me a tremendous amount of time and effort.”

GIS technology enables users to evaluate and analyze key factors when researching commercial sites including transportation infrastructure, flood zones, topography, aerial imagery, environmental, contour elevation, and traffic counts. Real estate investors are empowered by GIS technology to further quantify their investment portfolios.

Site Tech System’s OneSource users can gain a competitive edge over fellow real estate professionals. OneSource integrates GIS throughout its reporting mechanism thus simplifying the research time and enhancing productivity and profitability of its users.

“OneSource has a big advantage over other GIS software and property information tools we have used in the past.  Its level of completeness and ease of use really makes it nice to use. When clients come in our office with a new project, the first thing I do is to open OneSource to conduct a site evaluation with them. Within minutes we can determine various site conditions that will affect their potential use of the property.  It really saves

a lot of time and money for us and them and they appreciate that,” says Steve Powell, President, Venture Engineering. “OneSource helps me to produce more accurate construction and engineering services quotes because I can understand the soils, wetland potential, grade and drainage conditions.  This all is valuable for me to qualify my time and material for initial design and construction estimates, often on their first visit!”

“As the real estate market changes, the ability to query is critical. That can best be done with GIS technology. OneSource’s functionality allows complex searches based on buffering, databases and a plethora of other elements,” Schmidt states. “One will never be able to distinguish by data alone ALL that OneSource allows users to do with it.”

“With the click of one button, OneSource brings volumes of information to your desk. Sure, the same information is available to anyone but you have to visit literally hundreds of web sites and they may not have user friendly data or you could need special software to run the reports – which might cost more than OneSource,” explains Cody Jetton, MAI, CRE, FRICS, Managing Director with Cushman & Wakefield of Washington, DC, Inc.

“Brokers, Commercial Investors, Real Estate Professionals, Appraisers, and Bankers are just a few industry professionals who will directly benefit from using GIS applications such as OneSource in their daily operations,” states Schmidt. “Overall benefits include being able to make decisions based on comprehensive data and visualization of the investment property in question. GIS users are able to save time thus increasing productivity and profitability. They’ve moved on to the next project while others are still researching data.”

 “As a commercial loan officer, I perform in-house appraisals for loans $250,000 and less.  With OneSource I can quickly research a property and qualify property value based on their comps, property detail, property conditions as well as see market activity surrounding the subject.  It gives me great confidence in the values I lend money on for the bank’s collateral,” Bob Moore, Vice President with Crescent Bank comments.

A real estate company’s investment in GIS software can be quite expensive. Initially, a firm could easily spend between $1,500 and $25,000, depending on the particular software and hardware functions as well as any additional data needed. However, OneSource provides GIS reporting via web interface and is much easier to learn than spending months in classes learning how to use GIS software, notes Schmidt.

According to Schmidt, “no one should expect to learn GIS by playing with the software for a few hours, or even a couple of days. Once a solid understanding of GIS tools is gained, the user will still need to determine how to apply those capabilities profitably to daily real estate activities. With OneSource, we have simplified that process for non-GIS professionals who could still benefit from GIS functionality.”

“I find OneSource invaluable in preparing property packages and briefs.  In a global economy, being able to communicate effectively is critical. The GIS maps, layers of information, and data sets in OneSource all give my research meaning to buyers and sellers wherever they are.  Additionally, I save the reports to files I can e-mail to clients so we can talk about a property more effectively from our computer screens,” comments Sig Buster, CCIM, Commercial Broker. “OneSource makes brokers like myself more competitive because we know more. Not only about what people see above ground, or data like sales, but also environmental, or below ground conditions like soils. It all matters. And, OneSource helps me avoid property problems for me and my clients.”

Founded by commercial real estate entrepreneurs Jim Parker and John Jobson,       Site Tech Systems is dedicated to simplifying the process of gathering, consolidating and analyzing real estate information. The proprietary web-based OneSource product is the most comprehensive tool for the real estate industry serving more than 700 leading real estate professionals, developers, investors, engineers, appraisers and lenders in the Eastern Carolinas. For more information on Site Tech Systems, OneSource application or OneSource Foreclosure application, visit www.sitetechsystems.com or call 1-800-470-2895.