MAPS & FACTS™ UNLIMITED, INC. specializes in GIS (Geographic Information System) produced, architectural, driven, based, demographic, educational, and real estate maps to home buyers, brokers, developers, attorneys and lenders.
Map of the Month – July 2019
"True" Trade Areas vs. "Ring" Trade Areas
Many analysts still use one (1) to five (5) mile “rings” to identify a trade area. Unfortunately, “True Trade Areas” do not radiate from a specific point. True Trade Areas are always a polygon, or a series of polygons, based on criteria other than simple geographic distances. Other criteria may include major roads, traffic sheds, similar uses, neighborhood age, incomes, and more.
The better approach to a True Trade Area is to “lay out” the most important trade area criteria on a GIS map to focus on data either similar to your target location, or, to help select your target location. This can be repeated by layering multiple criteria. I.e. Where are theyoungest householdswith the highestincomes?
For this month’s map we selected the intersection of Scottsdale and Lincoln Roads. While this submarket is in transition thanks to the Ritz Carlton and other recent resort projects, it is an excellent example of the difficulty in identifying a trade area.
As the following “ring” map shows, a 3-mile ring includes Paradise Valley residential, the Salt River Pima-Maricopa Indian Community and combined census tract median incomes from $64 million to $236 million.
If you’re thinking retail, where will your customers come from? Where is your competition? If you’re thinking office, how will your employees and clients get to you? Circular trade areas will not help and may mislead.
Below is a more realistic, “True”, trade area North/South along Scottsdale Rd. excluding Paradise Valley and the Salt River Pima-Maricopa Indian Community.