Trade Area Analysis Block by Block: Why are Small Area Estimates Important?
Real estate professionals need the most accurate and precise demographic data in order to evaluate locations and markets. Businesses need to select sites with the right customer fit using trade area level demographic information in order to efficiently drive revenues and, more importantly, to avoid bad locations. Never has the use of highly accurate small area estimates been more critical than in today’s recovering economy. Cautious, scaled back expansion plans and relocations are the rule at many retail and restaurant chains, and every real estate investment is under the tight corporate scrutiny and expected to deliver results quickly.
Nielsen continues to lead and innovate in the area of demographic estimates. We first incorporated micro-level data in our processes in 1980 when we utilized household address information to add granularity to our estimates. Our latest breakthrough is the recent introduction of the Nielsen Master Address File into our demographic estimates. The Nielsen Master Address File is a multi-sourced file of every available address in the U.S., and is extremely valuable for detecting post census shifts in population. By creating and updating this unique dataset and incorporating it as the bedrock of our estimates, Nielsen is able to more accurately estimate population and households. These bottom-up estimates are created from the lowest level of geography—the address—and apportioned to blocks, block groups, and tracts.