Data Accuracy and “Noise” in Location Intelligence: More Than a Technicality

I have heard a lot lately about both data fatigue and disparate data in #CRE. The former relates to the industry being swamped with data and trying to make sense of the noise. The latter comes once you decide on the data you need (a feat in itself), and none of it plays nice in the sandbox together. Whether its different formats, how its consumed, or trying to put it all together to tell the story, these challenges are real...and expensive to resolve.

But there is one piece of the data puzzle that often gets overlooked and is more important than either of the above. It lurks in retail site selection and development, consumer analysis, real estate investment decisions, and more: not all data is created equal and truly reliable.

Let's Talk Mobile Location Data

The proliferation of GPS-enabled devices and data aggregators means decision-makers often rely on mobile datasets riddled with “noise” - irrelevant, imprecise, or erroneous entries that can distort reality.

Noise in mobile location data can stem from technological limitations, such as imprecise device tracking, signal interference, and sparse or inconsistent data sampling. Aggregated data sets, especially those collected from third parties, may blend high-precision points with unreliable sources, obscuring the true picture.

For commercial real estate professionals, even minor discrepancies matter. Noise can skew market analyses, site selection models, and foot traffic estimates, leading to misguided investments or missed opportunities. Retailers making location-based marketing decisions risk wasted budget on poorly targeted audiences if the underlying data has not been rigorously cleaned and validated.

This doesn't mean that mobile location data should not be used. It is 100% better than old metrics (for some things). It just means it should be questioned and understood for what it is and what it can do.

Addressing the Data Challenge:

• Transparency: Stakeholders should demand transparency about data sources, collection methods, and system limitations. They should understand sampling rates, sparsity areas, demographic skews, etc and not accept a "black box" response where proprietary algorithms rule the conversation. If the conversation is too technical, bring in additional support to help you wade through the terminology and get to the answers you need. Providers are there to sell you data...you need to be comfortable that they are giving you the answers you need...and deserve.
• Tell the stories you are able to tell: Don't try to make the data something that its not and certainly don't fall for the marketing hype without questioning everything. Too often we look to push data beyond its limits, whether its the need for granularity or to tell the story we want to tell (vs reality). As an example, this data is awesome for understanding trade areas...store performance, not so much.
• Stay away from FOMO: Just because someone else is using data to gain an "apparent" competitive advantage, does not mean they are successful at it.

Don't get competitive and fall into the FOMO trap of if they have it...I have to have it. Look for the data that's best for you and your use cases and remember that this is first and foremost a boots on the ground industry. Cool data does not equal perfect decision making. The right data will get you a lot closer to that goal!

Moving Forward

As location intelligence grows in influence and insights, businesses must address data accuracy and integrity head-on. The quality of insights will always depend on the integrity of the underlying data. Ask questions of the providers and demand transparency and openness in your discussions. If a provider is unwilling, that should tell you all you need to know!

IN THE NEWS

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The Outlook for Industrial - W.P. Carey

"The industrial real estate sector continues to stand out as a resilient and adaptive asset class, even amid economic uncertainty and shifting global dynamics."

Consumer spending may be up, but so is household debt, a new report from the New York Fed shows - Paywall to access

"Household debt rose to $18.39 trillion, and delinquency remained "elevated," the New York Fed said. Credit card balances hit $1.21 trillion, with rising student loan debt and mortgages. Economic signals are mixed, with a strong stock market and spending, but weakening job growth."

The new American shopping mall is less Macy’s, more church, bowling, Barnes & Noble

"But as mall tenants change, some are seeing as much as triple the revenue from former Sears or Macy’s locations from bookstores, grocery stores, and even churches that lease square footage."

Consumer Behavior Sees Lasting Shifts Five Years Post-Pandemic

"The 2020 pandemic upended consumer shopping habits in ways that are still felt today"

Nostalgic Restaurant Spotlight:

BURGER CHEF

Founded in Indianapolis in 1954, Burger Chef was created by Frank and Donald Thomas as a result of their patented flame broiler (patented under the parent company, General Equipment Corporation).

Burger Chef grew at an astounding pace with a core focus of small, suburban towns across the United States. In 1968 General Foods Corporation purchased the 600-unit chain with plans to continue aggressive expansion including internationally with Australia being the first market (the Australia experiment failed by 1975)

By 1972, the company had grown to 1,200+ locations with only McDonald's being larger (1,600+). This was also the year that Burger Chef introduced the Funmeal. "the first kid’s meal that included a burger, french fries, a drink, a cookie, and a small toy; with expanded packaging that included stories about Burger Chef and Jeff's adventures and friends (including the magician Burgerini, vampire Count Fangburger, talking ape Burgerilla, and Cackleburger the witch), with riddles and puzzles. When McDonald's introduced their Happy Meal in 1979, the chain sued, but ultimately lost." [Wikipedia]

Sold again in 1982, this time to Imasco (a Canadian company that also owned Hardee's), many of the Burger Chef locations were converted to Hardees, closed, or allowed to convert to other brands. By 1996, the last Burger Chef closed its doors and the once prolific chain was no more.