Under a strict timeframe, Industrious was looking for custom office space rent optimization forecasting. They wanted to develop an industry-relevant algorithm capable of suggesting pricing ranges for real estate opportunities and produce a national blueprint identifying and scoring potential high price markets using that algorithm. As a client of CBRE’s Technology & Media Practice group, Industrious was referred to the Forum Analytics group for assistance with their data-driven request.
Forum Analytics conducted a pricing analysis for two competitors of Industrious. With data provided by Industrious, as well as demographics from PopStats and rent and vacancy information from CBRE Economic Advisors, Forum Analytics developed an Excel-based calculator with relevant data and internal scoring engine results for future internal analysis. The national blueprint results were visualized with a static heat map for Industrious to use in their strategic planning. The modeling solution was delivered within the tight deadline set by Industrious and was met with great enthusiasm by their team. The results provide a data point for consideration to be used alongside other relevant market factors and available institutional knowledge as Industrious continues its development.
Exceptional Client Outcome
- Forum Analytics developed a balanced, market-oriented pricing model with a median absolute accuracy of +/- 11.9%
- For each existing Industrious unit, the model was run to suggest a range of pricing based on the competitors potential pricing in those markets, identifying existing locations that may have untapped revenue potential
- The pricing model was across all US zip codes estimating pricing ranges for 11,377 markets with adequate workplace population. It identified 1,637 markets with high pricing potential
- The analysis identified the top 5 markets for high rent districts and generated pricing strategies within markets of interest for Industrious