GeoPhy, one of the fastest growing companies in commercial real estate technology, has launched Evra, a new AI-powered valuation platform. Using Evra, commercial real estate investors, lenders, and researchers can now seamlessly access GeoPhy’s automated valuation model (AVM) — the first AVM to provide accurate, transparent valuations for U.S. multifamily properties in an instant.
With $15 trillion in U.S. commercial real estate held on balance sheets and used as collateral for loans, accurate commercial property valuations are critical to an efficiently functioning financial system.1 In contrast to other markets where technology has enabled improved efficiency and transparency, commercial property valuation remains predominantly manual, subjective, time-consuming, and inaccurate.
Unlike traditional valuation methods, Evra takes an automated, integrated, data-driven approach grounded on the GeoPhy AVM — an algorithm developed using proprietary property transaction and income datasets, combined with non-traditional data sources that capture quality of life, safety, and other indicators rarely utilized for real estate valuations. The GeoPhy AVM uses supervised machine learning and is 50% more accurate than traditional multifamily property valuations.2
“Evra and the GeoPhy AVM are the result of years of development in collaboration with real estate investors and lenders, industry experts, and talented data scientists. By taking an unconventional approach to data sourcing, integration and enrichment, Evra becomes the first commercial real estate valuation platform that provides the sector with trusted property values,” said Teun van den Dries, co-founder and CEO of GeoPhy.
The robust valuation algorithm underlying Evra uses an extensive breadth of data to identify global patterns, then applies hyperlocal data to refine analysis specific to a property. 3
The Evra platform also exposes the following structural features that drive the GeoPhy AVM property value:
- Value drivers. Evra identifies and reveals the influence of property and income, market, and location characteristics that drive property value and performance.
- Neighborhood deep-dives. Evra displays neighborhood views that identify schools, restaurants, transit options, nightlife and other information within the GeoPhy REACH walk and drive time calculations.4
- NOI sensitivity analysis. Evra sheds light on both downside risk and upside opportunity.
Used for property screening, diligence, asset management, and risk management, Evra enables users to save time, reduce costs, and make better-informed decisions. In addition, users gain deep insight into how property, market, and location characteristics contribute to the valuation.
“As one of the largest real estate finance companies in the U.S. we are very large consumers of data and valuations. Evra completely changes that workflow for us,” Willy Walker, Chairman and CEO of Walker & Dunlop comments. “I’m excited about how this platform supercharges our team and makes them that much more effective.”
Co-headquartered in Delft, the Netherlands and New York City, GeoPhy’s machine learning algorithms power the most accurate AVM for commercial real estate. We use a combination of proprietary technology and data to deliver a platform that provides lenders and investors trusted information to make faster, more informed real estate decisions.
1 Estimating the Size of the CRE Market in the U.S.: https://www.reit.com/data-research/research/nareit-research/estimating-size-commercial-real-estate-market-us
2 Accurate Assessments of Value: https://www.geophy.com/insights/the-geophy-avm-accurate-assessments-of-value
3 Big Data in Real Estate: https://geophy.com/insights/big-data-in-real-estate-from-manual-appraisal-to-automated-valuation
4 Location, Location, Location: https://www.geophy.com/insights/the-geophy-avm-location-location-location-2