Business situation
Under business situation is understood in the real estate industry , the situation of commercial real estate . The counterpart for residential property is the residential area .
General
The location as a determinative compound is the place where a property is geographically located. The location is of decisive importance as a location factor in general in the valuation and especially in the property appraisal. It is the most essential, non-material factor influencing price and value. Location and location are not synonyms. While every location has a location, a location first becomes a location "due to the usage-specific, differently assessed environmental conditions and the market conditions that change over time ...". The requirements for the location are essentially determined by the intended use.
In real estate project development, the three factors capital , idea and location are combined with each other for the construction of a property . While the idea and capital can still be described as largely variable and influenceable even after the construction of a property, once a location decision has been made, it can practically no longer be influenced due to the high transaction costs . The location is therefore one of the few factors that cannot be changed in real estate. The situation, however, can change in the medium term due to the environment.
Classification
Therefore, the location of a commercial property must be subjected to a thorough location analysis. The following criteria are particularly important for the success of the business ( income value ) at a certain location: population development , population structure , purchasing power potential , neighboring buildings , existing parking spaces , pedestrian frequency (in retail ), road connections , train station , port or airport ( industry ). These criteria can be condensed into the following situation assessments:
- 1A location
- 2A location
- 1B location
- 2B location
A good location is an essential evaluation criterion. Commercial properties in A locations have a pedestrian frequency of more than 10,000 pedestrians / hour (e.g. pedestrian zones ), B locations reach 40–75% of this frequency. It can be assumed that the street with the highest pedestrian frequency has the highest purchasing power in the city center. From this it can be concluded that this is a prime location. The lower the footfall, the worse the location of a property. In the case of commercial real estate, some authors add a 1C location for the least attractive location, which has a pedestrian frequency of less than 40% of the A location.
Commercial properties are already partially permitted in mixed areas ( Section 6 BauNVO ) and urban areas , but must not significantly disrupt living there. Core areas are primarily used to accommodate commercial operations and central business , administration and cultural facilities , but also housing ( Section 7 BauNVO). In the case of purely commercial areas, a distinction is made between commercial areas with exceptional residential development ( § 8 BauNVO) and industrial areas ( § 9 BauNVO).
Pricing
The business situation has a major impact on the rental or purchase price of a commercial property. In the 1A location, the highest price is achieved or paid for a shop , and in the 2B or 1C location the lowest price.
Others
Colloquially, the business situation is also used to describe the economic situation of a company or an industry .
Individual evidence
- ↑ Monika Walther / Günter Muncke / Maike Schwarte, location and market analyzes , 2001, p. 5
- ↑ Jürgen Platz, Real Estate Management: Test Criteria for Location, Substance, Yield , 1993, p. 49
- ↑ Michael Mütze (ed.), Immobilieninvestitions , 2009, p. 1 f.
- ↑ Martin-Dieter Herke, Bank talks lead like the professional , 2003, p. 116
- ↑ Christina Arndt, standard land values in areas with low purchase prices , 2014, p. 65
