Asset clustering offers a superior method of market segmentation compared to the traditional approach
The approach incorporates both traditional and alternative data sources to characterize individual properties and group them into a set of meaningful clusters with similar characteristics
The key benefits are to (a) Identify attractive market segments, (b) Understand the importance of various factors and characteristics, and (c) Support in the evaluation of specific assets
This approach represents a novel application of machine learning within commercial real estate to improve the investment and asset management process