Location Scoring

Location scoring is a quantitative evaluation technique that combines multiple geospatial variables into a composite index representing the overall attractiveness or suitability of a place for a specific purpose—typically a new store, service center, or investment property. Each variable is assigned a weight reflecting its relative importance, and individual scores are normalized and aggregated into a final rating.

Analysts select criteria relevant to the decision—population density, household income, drive-time accessibility, competitor proximity, foot traffic volume, and co-tenant quality are common inputs. Each criterion is scored on a common scale (e.g., 0–100), often using percentile ranking against a benchmark set of locations. Weights are applied based on the business model: a quick-service restaurant might weight drive-time traffic heavily, while a luxury retailer prioritizes affluent demographics. The weighted scores sum to produce a composite location score that can be mapped, ranked, and filtered.

Retailers use location scores to prioritize sites in expansion pipelines, focusing site visits and lease negotiations on top-scoring candidates. Commercial real estate investors score properties to identify undervalued assets in high-potential markets. Franchise systems use scoring models to evaluate prospective franchisee territories and set performance benchmarks. Location scoring transforms subjective site evaluation into a repeatable, transparent, data-driven process that accelerates decision-making and reduces expansion risk.