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success factors for business location
Choosing the right business location is a crucial success factor for your company. But which criteria really matter? From the integration of real-time data to adapting to regulatory requirements – we show you what counts. Learn more about our services in the field of location analysis and contact us now to find the optimal location for your success.
The choice of the right business location is crucial for business success. A strategic location choice can increase revenue by 3% and reduce operating costs by 2%.
Risk management, sustainability and digitalisation are key factors for future-proof commercial locations. The integration of these aspects ensures long-term competitiveness.
SMEs should develop formal risk strategies and implement regular risk monitoring to minimise financial risks and ensure stability.
The choice of the right business location is a crucial factor for a company's success. An optimally chosen location can not only reduce operating costs but also facilitate access to qualified employees and enhance competitiveness. The economic impacts of a location are diverse, ranging from the local infrastructure to the regional economic policy. Social impacts also play a role, such as proximity to residential areas and the acceptance of the business in the local community. Last but not least, environmental aspects are significant, especially with regard to sustainability and resource conservation.
This article provides you with a comprehensive overview of the key success factors for business locations. We show you how to identify the ideal location for your company using the latest methods and sound risk management. We consider both the perspective of businesses and that of municipalities interested in actively shaping attractive business locations. Our goal is to provide you with practical recommendations that you can directly apply to your location planning.
Auctoa supports you in finding the optimal business location by using state-of-the-art automation and AI-driven expertise to create accurate and market-oriented evaluations. Contact us today to learn more about our services and how we can help you optimise your investment decisions.
Risk management plays a central role in the development and operation of commercial properties. A systematic identification and assessment of risks is essential to minimise potential financial losses and ensure long-term profitability. The main risks include market risks, which arise from changes in the competitive environment and demand, operational risks, which affect the ongoing operation of the property, and environmental risks, which can result from environmental regulations and climate change. A comprehensive risk analysis helps you understand the potential impacts of these risks and develop appropriate countermeasures.
To effectively minimise risks, it is important to implement best practices in risk management. This includes early risk detection through continuous market observation and the analysis of leading indicators. Stress testing, or the simulation of extreme scenarios, helps you test the resilience of your property portfolios and identify vulnerabilities. Careful documentation of all risk management processes is essential to ensure the traceability and effectiveness of the measures. The growing importance of risk management is underscored by the subprime crisis and the subsequent economic crisis, leading to regulatory changes that require robust risk management systems for institutional investors.
The rising CO2 pricing has significant impacts on the operating costs of commercial properties. To minimise financial risks, energy-efficient refurbishments and investments in renewable energies are essential. This not only helps reduce CO2 emissions but also lowers operating costs and increases the attractiveness of the property to tenants. The Building Energy Act (GEG) mandates a transition to renewable energies for heating, requiring early planning and implementation of appropriate measures. Considering local heat planning is crucial to making the right decisions for the future.
ESG factors (environmental, social, and governance) are playing an increasingly significant role in the evaluation of commercial locations. Investors and tenants are placing greater emphasis on sustainability and social responsibility. This has direct implications for property valuation and the attractiveness of a location. Consequently, the consistent integration of ESG factors into investment strategies is essential for long-term success. Considering environmental aspects, social responsibility, and good corporate governance can not only enhance the image but also boost financial performance.
Energy efficiency and CO2 reduction are central elements of sustainable site development. Comprehensive measures are required to achieve the goals of climate neutrality. This includes energy-efficient renovations that reduce energy consumption and the development of CO2 reduction pathways focusing on renewable energy and innovative technologies. The implementation of energy efficiency strategies demands specialized expertise to enhance both revenue and asset value.
Climate change poses a growing threat to commercial properties. Increasing extreme weather events require proactive measures to protect properties. This entails adjustments to changing climatic conditions, such as protection against floods and heatwaves. A robust adaptation to extreme weather events is crucial to secure the long-term usability and value of the property. By implementing climate change adaptation measures, you can not only avert damage but also increase your site's resilience.
Die Digitalisierung bietet enorme Potenziale zur Effizienzsteigerung und Kostensenkung im Gewerbe. Data-driven decision-making enables you to make informed decisions based on real-time data. Nutzung von IT-Lösungen zur Identifizierung von Synergien und Einsparungspotenzialen ist dabei von zentraler Bedeutung. Effective Datenmanagement is the foundation for a successful digitalisation strategy. By analysing data, you can optimise processes, use resources more efficiently, and reduce costs. Integrating digital solutions allows you to gain competitive advantages and enhance the value of your location.
PropTech solutions offer innovative approaches to boost efficiency in immobilienmanagement. Digital modelling and simulation tools enable virtual planning and optimisation of buildings. Predictive maintenance helps you detect and fix damages early before they lead to bigger issues. The quality of property management is significantly influenced by the introduction of PropTech solutions, such as digital modelling and simulation tools, to improve work efficiency and scenario planning.
Künstliche Intelligenz (KI) revolutioniert das immobilienmanagement. AI-based systems can automate processes, enhance decision-making, and increase customer satisfaction. However, KI implementation also has its risks. Data security and algorithm transparency are crucial to avoid misuse and poor decisions. Careful selection of AI tools and providers is essential to harness the benefits of AI while minimising risks. The use of AI offers advantages in property management, marketing, and facility management, but also poses implementation risks.
The requirements for commercial properties are changing rapidly. To remain competitive in the long term, it is important to adapt to changing usage requirements. The adaptive reuse of existing buildings offers a sustainable alternative to new construction. Innovative usage concepts tailored to the needs of users can significantly enhance a location's appeal. The increasing shift towards home office and housing shortages requires adaptive repurposing of existing buildings, making innovative usage concepts in property management necessary.
The transformation of office spaces is a central trend in the commercial real estate market. Home office and flexible working models have reduced the demand for traditional office spaces. This necessitates the development of flexible office concepts tailored to the needs of companies and employees. Co-working spaces, flexible lease agreements, and modular office spaces are examples of innovative approaches that take the changing world of work into account. Adapting to new working models is crucial to ensure the occupancy and profitability of office properties.
A strategic portfolio management is essential to maximise the return on commercial real estate and minimise risk. A comprehensive data analysis and market evaluation form the basis for informed investment decisions. The effective management requires strategic administration and optimisation to maximise return and minimise risk through comprehensive data analysis and market evaluations. By actively managing the portfolio, you can seize opportunities and identify risks early on.
The Asset Management includes the operational management of properties. This encompasses the implementation of portfolio management decisions as well as the monitoring of financial matters. Professional asset management ensures that the properties are optimally managed, and the return targets are achieved. The Asset Management involves the implementation of portfolio management decisions, often segmented by asset classes (e.g. commercial, residential, logistics).
The Property Management covers the daily operational tasks, such as leasing, maintenance, and tenant support. The selection and monitoring of service providers play a central role. Professional property management ensures high tenant satisfaction and optimal management of the properties. The Property Management focuses on daily operational tasks like leasing, maintenance, and monitoring of energy consumption.
Investment Management requires careful consideration between return expectations and risk tolerance. The balance between return expectations and risk tolerance influences the relevance and weighting of factors such as investment costs, capital expenditure, risk diversification, and capital commitment. A solid financial plan is crucial for making the right investment decisions. The investment decisions depend on the balance between return expectations and risk tolerance, affecting the relevance and weighting of factors like investment costs, capital expenditure, risk diversification, and capital commitment.
Effective portfolio management strategies are vital to maximizing returns and minimizing risks. This includes determining the extent of modernization and ensuring high maintenance quality. Active portfolio management allows for the exploitation of opportunities and early identification of risks. Effective portfolio management requires strategic administration and optimization to maximize returns and minimize risk through comprehensive data analysis and market assessments. Key decisions include the extent of modernization, maintenance quality, and asset disposal.
Many SMEs show weaknesses in risk management. The maturity level of risk management in SMEs is often low, which can lead to increased vulnerability to financial losses. One of the biggest challenges is deficiencies in risk strategy, which is often not sufficiently documented and updated. The majority of small and medium-sized Austrian property developers operate at the "initial" to "basic" levels of risk management maturity.
Informal risk reporting is another issue. Lack of standardised templates and insufficient documentation complicate communication and the traceability of risk management processes. Additionally, there is often a lack of motivation to improve risk management because the potential benefits are not sufficiently recognised. Risk reporting is predominantly informal (e.g. discussions), with only a few companies using structured risk reports or standardised templates for immediate risk notifications.
To improve risk management, SMEs should develop formal risk strategies and implement them. This includes setting clear objectives, defining responsibilities, and introducing standardised processes. Regular risk monitoring and reporting are essential to identify risks early and take appropriate action. The development of formal, written risk strategies with defined methods and target values is an important recommendation to enhance risk management in SMEs.
The key success factors for commercial locations are risk management, sustainability, digitalisation, adaptability, and financial stability. Companies and municipalities that consider these factors are well-positioned for long-term success. Integrating risk management, sustainability, and digitalisation is crucial to ensuring the competitiveness and value of commercial locations.
The future prospects for commercial locations are promising, especially for locations that focus on innovation and adaptation. The trends and developments in the real estate market indicate that the importance of sustainability, digitalisation, and flexible usage concepts will continue to increase. Companies and municipalities that recognise and implement these trends early will be the winners of the future.
Would you like to find the optimal commercial location for your business and benefit from the advantages of a professional property valuation? Auctoa offers you comprehensive expertise and innovative solutions for your location planning. Contact us today to learn more about our services and how we can help you optimise your investment decisions. Visit our contact page to schedule a personalised consultation.
The University of Regensburg is investigating the growing importance of risk management, particularly in the context of financial crises and regulatory changes.
Wüst Partner analyses trends and challenges in real estate management and offers insights into strategies for increasing property value.
TU Wien examines the maturity level of risk management among small and medium-sized Austrian real estate developers and provides recommendations for improvement.
What are the key success factors when choosing a commercial location?
The key success factors are risk management, sustainability, digitalisation, adaptability, and financial stability. These factors influence the long-term profitability and attractiveness of a location.
How does risk management minimise financial risks in commercial properties?
Risk management minimises financial risks through the systematic identification and assessment of market, operational, and environmental risks. A comprehensive risk analysis helps to minimise potential losses.
What role do ESG factors play in evaluating commercial locations?
ESG factors (Environmental, Social, and Governance) play an increasingly important role as investors and tenants are placing more value on sustainability and social responsibility. This directly impacts the property valuation.
How can digitalisation optimise processes and reduce costs?
Digitalisation offers potential for increased efficiency and cost reduction through data-driven decision-making and the use of IT solutions to identify synergies.
What is the significance of flexible use concepts for commercial properties?
Flexible use concepts are important for adapting to changing usage requirements. The adaptive reuse of existing buildings offers a sustainable alternative to new construction.
How does professional portfolio and asset management maximise the return on commercial properties?
A strategic portfolio management is essential to maximise returns and minimise risks. Asset management involves the operational control of properties and the implementation of portfolio management decisions.
What deficits do SMEs often have in risk management?
Many SMEs exhibit deficits in risk management, particularly in risk strategy and informal risk reporting. Developing formal risk strategies is crucial.
How does CO2 pricing affect the operating costs of commercial properties?
Rising CO2 pricing has significant impacts on operating costs. Energy-efficient refurbishments and investments in renewable energy are essential to minimise financial risks.
