We have all had some exposure to the color coded maps that show us, for instance, per capita income town by town or the distribution of two tone Buick Rivieras by census tract. G.I.S. brings into focus what once was hidden. Early applications have been to assist in matching product to consumer for instance, Starbuck's outlets to the high income, young adult neighborhoods in which they are popular. Given the slower turnaround time and largely unknown accuracy of standard appraisals, the product has proven attractive to clients. Reenstierna Associates has been at work to develop a G.I.S. based industrial valuation model.
Regression analysis is applied to a large data base.
Regression alone can produce price estimates. As with any new technology, G.I.S. based valuation is likely to result in both unforeseen hazards and unforeseen benefits. Standard analysis that makes use of a limited number of sales researched in depth will always have an important place. But where computer and G.I.S. based analysis prove more efficient, they too will find a place. Tools like G.I.S. are likely to expand our vision of how markets function in ways that could not have been guessed.