Based on what I have read about Google's recent Panda and Penguin updates, I'm getting the impression that using semantic markup may help improve SEO results.

On a EMD (exact match domain) site, that may have been hit, we list location-based products. We are now going to be adding a itemtype="http://schema.org/Product" to each product, with relevant details.

However, that product may be available in Los Angeles and also in appear in a Seattle results page.

We could add a LocalBusiness item type on each geo page to define the geo location for that page. While the definition states:

A particular physical business or branch of an organization. Examples of LocalBusiness include a restaurant, a particular branch of a restaurant chain, a branch of a bank, a medical practice, a club, a bowling alley, etc.

We could add use the location property which would simply include the city/state details.

I realize that this looks like it is meant for a physical location, however could this be done without seeming black-hat?