Business Vitality measures the commercial health and dynamism of an area. It tracks net business openings vs closings, the diversity of business categories present, rating trajectory trends, and overall business density. A high Business Vitality score indicates a thriving commercial ecosystem with growing diversity and improving customer satisfaction.
For CRE investors and site selectors, Business Vitality is the single strongest predictor of near-term location value. Areas with rising net openings and diversifying categories signal growing demand for commercial space. Declining vitality often precedes rent drops and vacancy increases by 6-12 months, making this a critical leading indicator.
The ratio of new business openings to closings in the area over the trailing 12 months.
Tracked via first_seen_at and business_status changes across all POIs in radius. Normalized using fixed-range scaling.
Shannon diversity index of business categories present, measuring commercial ecosystem breadth.
Computed as H = -sum(p_i * ln(p_i)) over all primary_type categories. Higher diversity = healthier ecosystem.
Average change in Google ratings for businesses in the area over the past 6 months.
Computed from poi_snapshots rating deltas. Positive trajectory indicates improving service quality.
Number of active businesses per square kilometer.
POI count within radius divided by area. Normalized using fixed-range scaling.
Growth rate of total review counts, indicating increasing foot traffic and engagement.
Review count delta from poi_snapshots over trailing 6 months. Higher growth = more activity.
New business license applications and renewals indicating commercial formation.
License filings within radius from municipal open data portals. Higher filing rate = more new business formation.
A Business Vitality score of 75 means this location scores 75 out of 100 for commercial health. Each sub-score is normalized using fixed-range scaling against national benchmarks and combined using the weights above.