New Startup Uses Big Data To Predict Whether A Mall Will Close

A new big-data startup could help identify retailers at risk.

System2, a tech company based out of New York, works to arm bond investors with data sets that can predict the health of their potential ventures, something commercial mortgage bond investors and money managers are seeking given the volatility of the retail real estate market.

Data set forecasting has traditionally been more difficult when it comes to commercial mortgages because there are often a number of variables present given the wide range of tenants and customers for each property, Bloomberg reports.

System2 looks at mobile phone pings, demographic information, credit-card bills and other alternative data to accurately advise clients of the best way to invest in real estate.

Recently, the company used machine learning to analyze information about existing and closed JC Penney outlets to determine why they had been doomed to fail, Bloomberg reports.

Among the metrics used in the analysis were the number of people who visited the store, competition, location and vacant shops in the vicinity.

The model then predicted almost 200 more JC Penney shops faced a greater threat of dying.

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