Site Selection Analysis Lincoln Property Company

1
Site Selection Analysis Lincoln Property Company

• Paula Dzuck
• University of Texas at Dallas
• Final Presentation GIS Workshop Summer 2004
• July 28, 2004

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Introduction

• Lincoln Property Company (LPC) is one of the
  largest, private real estate service firms for
  both residential and commercial management within
  the United States. Currently, LPC manages over
  300 hundred properties in the U.S. and 40
  properties in Dallas.
• Objective the purpose of this research project
  was to evaluate if Lincoln Property Company is
  taking advantage of potential land area or areas
  for multi-family housing development within the
  city of Dallas?

3
Problem Statement

• Decisions about land development, construction
  issues, and property take-overs are typically
  made by analyzing rough numbers from Excel
  spreadsheets, graphics such as pie chart as well
  as digital ortho maps displays of current
  properties on conference room walls.
• There is a technological drag within this
  company. It is very difficult to incorporate
  new and/or emerging technologies.
• With that in mind, there is obviously a lack of
  spatial perspective due to the current methods of
  site selection.

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Literature Review

• Time is buy is still nowbanks are more eager to
  lend money for land development at relatively low
  interest rates.
• There has been a recent influx of multi-family
  housing development within the city of Dallas.
• Development is still occurring at a rapid rate
  that thorough assessment of the given land is not
  being fulfilled.
• Webb, S. (2003). Oversupply Hinders Multifamily
  Recovery Electronic version. National Real
  Estate Investor. Retrieved
• May 27, 2004, from http//nreionline.com/microsite
  s
• Author Unknown (1996). New apartment report makes
  strong case for renting Electronic version.
  National Real Estate
• Investor. Retrieved May 27, 2004, from
  http//nreionline.com/microsites

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Data Sources

• Data was obtained for this project from the
  following sources
• LPC Properties addresses inputted into a table
  and geocoded
• North Central Texas Council of Governments
• Dallas County shapefile, rivers, railroads,
  freeways etc.
• University of Texas at Dallas, Green lab (3.206,
  P drive)
• Dallas Landmark data schools, hospitals and
  shopping centers
• DCAD and Dallas County Parcel data obtained from
  Dr. Curtin
• FEMA Federal Emergency Management Agency
• Q3 flood shapefile for Dallas County obtained
  from Dr. Curtin

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Analysisbackground

• When searching for an apartment home, each
  individual has a different set of objectives that
  needs to be fulfilled. Hence, there is not a
  universal method of analysis when trying to
  select the perfect site location to construct
  multi-family housing.
• From an LPC standpoint, my own expertise in the
  industry as well as personal observation, in
  Dallas, proximity is the key. It is an important
  factor when living in this city. People here want
  to live close to things. Ex Looking for an
  apartment near my childrens school. etc.
• With the city of Dallas in mind, there is a lot
  of parcels close to many things.where to begin?

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Analysis

• Tried to find some spatial relationship between
  parcel values and proximity to given features.
• Created a 1/8-mile, ¼-mile and ½-mile zone buffer
  around each feature.
• Within each zone-buffer, obtained the average
  market parcel value.
• GOAL establish within what proximity range to
  start the analysis process.

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Analysis

• Select Best Location
• Freeways Shopping Schools Hospitals Lakes
  Rivers Rails Airports

1/8-mile ¼-mile ½-mile
1/8-mile ¼-mile ½-mile
1/8-mile ¼-mile ½-mile
1/8-mile ¼-mile ½-mile
1/8-mile ¼-mile ½-mile
1/8-mile ¼-mile ½-mile
1/8-mile ¼-mile ½-mile
1/8-mile ¼-mile ½-mile
9

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Analysis

• Majority of the features average parcel zone
  value decreased the further away from the feature
  itself, which still did not provide a solid basis
  for choosing any zone-buffer.
• Taking it one step furthercreated a
  proximity-weighted model, following the AHP
  method, in order to assist in the process of
  determining the best location for multi-family
  housing development.
• The Analytical Hierarchy Process is a systematic
  method when comparing and contrasting numerous
  variables and the alternatives associated with
  those specific variables.
• STEP 1- pair wise comparison matrix showing
  preferences for the three buffer zones for each
  feature.
• Result of this step was to establish zone-buffer
  priority (8 values).

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Analysis

• Results from STEP1 Zone-buffer priority for each
  feature
• Freeways ½-mile zone-buffer
• Shopping ½-mile zone-buffer
• Schools ½-mile zone-buffer
• Hospitals 1/8-mile zone-buffer
• Lakes ¼-mile zone-buffer
• Rivers ½-mile zone-buffer
• Rail Roads ½-mile zone-buffer
• Airports ½-mile zone-buffer
• STEP 2 Pair wise comparison matrix for 8
  features based on the total parcel-zoned values
  for all three buffer zones. (EX All three zones
  for Shopping Center equaled to 187,450.)
• The outcome of STEP 2 is establish the overall
  priorities (8 values).
• STEP 3 Develop overall priority ranking by each
  value derived in STEP 1 and multiple by each
  value obtained in STEP 2 for each zone-buffer.
  And last, added the 8 values together resulting
  in the three final weighted values, one final
  value for each buffer-zone.
• FINAL WEIGHTED VALUE ½-MILE BUFFER ZONE (highest
  value)

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Analysis

• Final weighing factors in the site selection
  process
• Find a parcel that was in close proximity to at
  least two of the given features.
• Per LPC standard, parcel size equal to or greater
  than 6.5 acres (283,000 sq.ft) or multiple,
  smaller parcels that equal to 6.5 acres.
• Parcel designated with a flood plain code of X
  (An area that is determined to be outside the 1
  and 0.2 annual chance floodplains.)
• Designated zone classification of MF1, MF2,
  MF3, or MF4

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Results

• Parcel 00000174334000000
• Zoned MF2
• 2,048,354 Sq. feet
• ½- mile proximity Freeways/Rail/Schools/Shops
• Flood Plain X

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Results continued

• Parcel 001357000201B0000
• Zoned MF2
• 378,059 Sq. feet
• ½-mile proximity to Freeways/Schools
• Flood Plain X

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Future Research

• For the property management industry, the
  projects concept is positive, and it is a good
  start. Though, proximity is not the only thing
  that is evaluated. Demographics is another
  important aspect for site selection for LPC.
  Finding a way to analyze area demographics and
  proximity to spatial features would be beneficial
  for this company and to the industry itself.
• LPC has a property size standard of 283,000
  sq.feet, which could be one parcel or a
  combination of many parcels. Finding a way of
  incorporating more than one parcel in this
  spatial model could be quite useful.
• Find a faster yet more efficient way of dealing
  with large datasets such as the DCAD with the
  Dallas County parcel shapefile. Much time was
  wasted due to slow processing of the large
  datasets.

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References

• Webb, S. (2003). Oversupply Hinders Multifamily
  Recovery Electronic version. National Real
  Estate Investor. Retrieved May 27, 2004, from
  http//nreionline.com/microsites
• Author Unknown (1996). New apartment report makes
  strong case for renting Electronic version.
  National Real Estate Investor. Retrieved May 27,
  2004, from http//nreionline.com/microsites
• Church, R (2001). Computer Operations Research
  Geographical information systems and location
  science. Retrieved May 27, 2004 from the
  University of Texas at Dallas, McDermott Library
  Web of Sciences.
• Nyerges, T., Montejano, R., Oshiro, C., Dadswell,
  M. (1998). Transportation Research Part C
  Emerging Technologies Group-based geographic
  information systems for transportation
  improvement site selection. Retrieved May 27,
  2004 from the University of Texas at Dallas,
  McDermott Library Web of Sciences.
• Vlachopoulou, M., Silleos, G., Manthou, V.
  (2001). International Journal of Production
  Economics Geographic information systems in
  warehouse site selection decisions. Retrieved May
  27, 2004 from the University of Texas at Dallas,
  McDermott Library Web of Sciences.
• Overmyer, S. (n.d.). GIS in Business Education.
  Retrieved May 27, 2004, http//spatial.maine.edu/u
  cgis/testproc/overmyer.html
• Francica, J. (2002). Fredericks of Hollywood
  uncovers the secret to retail site selection
  Electronic version. Directions Magazine.
  Retrieved May 27, 2004, from http//www.directions
  mag.com