By using building footprint data, you can enhance your analytics and gain deeper insight into richly attributed Commercial Real Estate properties. Improved visualization, as well as appraisals and underwriting assistance, are both significant advantages of using building footprint data.
The immediate impact of footprint data is visual. Property information that includes images of the building footprints facilitates an immediate understanding of the composite formation of any CRE property.
Consider the visual below of a corner lot property depicted using both the building footprint and a traditional pin icon. The footprint image has several advantages over the pin;
- the idiosyncrasies of the building’s exterior shape are immediately apparent
- the building’s location within the parcel lot boundary is clear
- the building’s proximity to the nearby roads is quickly conveyed
- the relative size of the building in relation to the lot boundary is also apparent
Building Footprint versus Point representation of a building
When combined with parcel boundaries, appraisers and underwriters also benefit from the at-a-glance understanding that building footprints offer. Potential red flags, such as encroachment or redevelopment limitations due to zoning restrictions or lack of space, are more easily surfaced with footprint information.
Encroachment – #5 Race St extends into the parcel boundary of #3 Race St
Red flags such as these are important to CRE transactions as they can impact the current and future value of properties. Owners of buildings with encroachment issues potentially expose themselves to:
- Additional downside financial risk
- Potential liability if the encroaching structure poses any potential danger to any occupants of the primary building of the parcel
- Limitations on resale value of a property due to the additional downside risk it may pose
Learn more about how building footprints are a key element to your Commercial Real Estate Analysis here.