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Buying plots: What to consider about the location
Choosing the right location is crucial for the success of your business. But what really matters when it comes to location? This article highlights the key aspects, from soil conditions to competitor analysis. Do you need support in choosing a location? Get in touch with our experts here.
The location choice is crucial for the success of your business. A careful analysis of the macro and micro location reduces risks and maximises opportunities.
Check the development plan, the soil condition, and any possible contaminants to avoid unexpected costs. Early involvement of experts helps identify potential problems and control renovation costs.
Consider the transport connections, parking facilities, and the future viability of the property. A good location can increase customer footfall by 20% and raise rental income by 10%.
Introduction: The Importance of Location When Purchasing Commercial Land
Are you looking to buy a plot? Choosing the right location for commercial land is a crucial decision that significantly affects the long-term success of your business. It involves much more than just the price per square metre. Location impacts the customer footfall, employee satisfaction, and logistical possibilities. A poor choice of location can lead to substantial financial losses. Therefore, a careful analysis and consideration of all relevant factors are essential.
Your Guide in the Location Jungle
This article serves as a comprehensive guide to help you understand the key aspects of location selection and make informed decisions. We show you what to focus on in a location analysis, which cost factors are relevant, and how to minimise risks. With this knowledge, you are well-equipped to find the ideal location for your business. The expertise of an estate agent can be crucial here to avoid costly mistakes, as this guide shows.
Mikro- vs. Makro-Lage: Ein differenzierter Blick
Die Analyse der Lage muss auf zwei Ebenen erfolgen: der Makro- und der Mikroebene. The macro location considers the region, city, or district. Here, factors such as economic development, demographic structure, and transport links play a role. The micro location refers to the immediate surroundings of the property. Here, aspects such as visibility, proximity to customers, and the competitive situation are crucial. A detailed site analysis helps you identify the advantages and disadvantages of each location and make the best decision for your business.
Infrastruktur: Mehr als nur Straßen
A good infrastructure is essential for smooth business operations. This includes not only transport links such as motorways, public transport, and airports, but also digital infrastructure with fast internet and mobile network coverage. The supply of electricity, water, and sewage must also be guaranteed. Inadequate infrastructure can lead to significant disruptions and additional costs. Therefore, ensure a comprehensive assessment of the infrastructure before purchasing a commercial property. For more information on the importance of infrastructure, you can also refer to our article on factors for land assessment.
Konkurrenzanalyse: Chancen und Risiken
Analysing the competitive situation is crucial for assessing market potential. Ask yourself: Is there a high concentration of competitors nearby? How is the market share distributed? What are the strengths and weaknesses of the competitors? A well-founded competitive analysis helps you determine your position in the market and adjust your competitive strategy accordingly. Also consider the provider advantages within commercial properties to identify potential barriers to market entry.
What the Development Plan Regulates
The development plan specifies what type of construction is permissible on a property. It governs the type of use (commercial area, mixed-use area, residential area), the building density (floor area ratio, plot ratio), and the construction method (open or closed construction method). Violating the development plan can lead to significant consequences, including the demolition of the building. Therefore, thoroughly acquaint yourself with the development plan before purchasing a commercial property and seek legal advice if necessary.
Early Consultation with the Municipality
Contact the municipality early to assess the feasibility of your project. A preliminary building inquiry provides early legal certainty. Address any outstanding questions with the building authority. Early engagement with the municipality can save you considerable time and money. Adhering to the development plan and the Building Code is crucial to understanding the potential and limitations for development.
Risk Minimisation through Development Plan Review
Reviewing the development plan is a vital step in minimising risks when purchasing a commercial property. Ensure that your proposed construction project complies with the provisions of the development plan. Consult a professional if there are any uncertainties. A meticulous review of the development plan protects you from unpleasant surprises and unnecessary costs. The expertise of an estate agent is essential in this process.
The Importance of Contaminated Site Inspections
Inspecting for contaminated sites is essential to avoid unpleasant surprises. Inquire about the previous use of the property. Have soil samples taken and analysed. Check with the municipality’s environmental register. Contaminants can lead to significant remediation costs and restrict the use of the property. The investigation of previous use is crucial for identifying potential pollutants or ordnance, the removal of which will be the responsibility of the new owner.
Soil Condition: Load-bearing Capacity and Soil Survey
The soil condition significantly influences construction costs. Is the ground capable of supporting your construction project? A soil survey provides information on the soil conditions. Poor soil can require complex and costly foundation measures. The condition of the soil is an important factor in property analysis, including the assessment of contamination.
Comprehensive Risk Assessment Before Purchase
A comprehensive risk assessment is essential before purchasing a commercial property. This not only includes examining for contaminated sites and analysing soil conditions but also considering other potential risks such as flood danger or slope. A thorough risk assessment helps you realistically estimate the total project costs and avoid unexpected expenses. The calculation of land costs should take all potential risks into account.
The Importance of Good Transport Links
Good transport links are crucial for accessing your business. Is there a good connection to public transport? Is the site well connected to the motorway network? Are the access roads adequately sized? Poor transport links can lead to loss of revenue and employee dissatisfaction.
Parking: A Must for Customers and Employees
Adequate parking spaces are an important factor for customer satisfaction and employee contentment. Are there enough parking spaces for customers and employees? Are the parking spaces chargeable? Are there disabled parking spaces available? An insufficient number of parking spaces can deter customers and diminish the attractiveness of the location. A thorough parking analysis, taking into account peak times and potential expansion needs, is thus essential.
Infrastructure as a Competitive Advantage
An optimal transport connection and sufficient parking options are not just a comfort factor, but a decisive competitive advantage. Companies with good accessibility are more attractive to customers and employees and can thus set themselves apart from the competition. Therefore, invest in good infrastructure and secure your success in the long term. The checklist for commercial properties should include a detailed assessment of communication facilities and access and parking capacities.
Der Kaufpreis: Verhandlungsspielraum und Marktwert
The purchase price is just one part of the total cost. Have the market value of the property assessed by an independent expert. Use your bargaining power. A purchase price that is too high can reduce your return. The early involvement of experts helps identify potential problems and control renovation costs.
Nebenkosten: Grunderwerbsteuer, Notar, Makler
Plan additional costs carefully. The property transfer tax varies depending on the federal state. Notary fees are legally regulated. The broker's commission is negotiable. Additional costs can quickly account for a significant portion of the total costs. Budgeting should not only include the purchase price but also additional costs such as notary fees, land register entry, and property transfer tax.
Erschließungskosten: Ein oft unterschätzter Faktor
Development costs can be substantial. These include the connection to the public network (electricity, water, sewage) and road construction (construction of access roads). Development costs are often an underestimated factor that can significantly impact the total cost of the project. Therefore, a detailed cost analysis is essential. The calculation of development costs should be carried out early to avoid financial surprises.
Flexibility and Reusability for Third Parties
Pay attention to the flexibility and reusability of the property for third parties. Can the property be adapted to changing needs? Is the property also attractive to other industries? A flexible and reusable property provides long-term security. The evaluation of the property's suitability for future leasing, taking into account potential demand in the area, is crucial.
Regional Development: Growth Potential and Future Prospects
Stay informed about regional development. How is economic growth in the area? How is the population developing? Are there support programs for businesses in the region? Positive regional development offers you good future prospects. The consideration of long-term strategic directions is critical, as purchasing commercial sites is a long-term strategic decision.
Securing Investment with Long-term Perspectives
The future security of a commercial property depends on various factors. In addition to flexibility and reusability, regional development and long-term perspectives also play an important role. A careful analysis of these factors will help you make an informed decision and secure your investment in the long term. The information regarding the purchase of property should also consider future developments.
The Importance of Careful Planning
Careful planning is the key to success. Create a checklist with all the important criteria. Seek expert advice from brokers, surveyors, and solicitors. Careful planning minimizes risks and maximizes your chances of success. Positioning yourself as a specialist with a broad network provides access to off-market properties and support in contract negotiations.
Location as a Competitive Advantage
The right location can give you a crucial competitive edge. A good location attracts customers. An attractive location makes it easier to recruit employees. Location is a crucial factor in the success of your business. Location-specific due diligence is vital to avoid costly mistakes in evaluating location factors.
Checklist for Purchasing Land
To ensure you don't forget anything when buying land, we've compiled a checklist for you:
Location Analysis: Macro and micro location
Infrastructure: Transport links, digital infrastructure, supply
Competitor Analysis: Competitive situation, market shares
Zoning Plan: Type of use, building density, construction method
Contamination Check: Previous use, soil samples, contamination register
Soil Condition: Load-bearing capacity, soil survey
Transport Links: Public transport, motorway connection, access roads
Parking Facilities: Number of parking spaces, parking fees, disabled parking spaces
Cost Factors: Purchase price, ancillary costs, development costs
Future Security: Flexibility, third-party usability, regional development
Choosing the right location for your business is a strategic decision that significantly impacts the long-term success of your company. A thorough analysis of the location, infrastructure, competition, and legal conditions is essential to minimize risks and seize opportunities. With this guide, you are well-equipped to find the ideal location for your business.
Auctoa supports you in making the best decision. Our expertise in property evaluation and analysis helps you identify the potentials and risks of various locations and make the best choice for your company. We offer comprehensive advice and support in location selection, cost analysis, and risk assessment. Rely on our experience and secure the ideal location for your business.
Would you like to learn more about our services and how we can assist you in choosing the right location? Contact us today for a non-binding consultation. Together, we will find the perfect location for your company and lay the foundation for your success. Register for free and receive an immediate initial assessment of the renovation needs of your property.
ifo Dresden offers an analysis of the determinants of international location choice for companies.
Statistisches Bundesamt provides information on regional economic structure.
Germany Trade & Invest (GTAI) informs about investment opportunities in Germany.
Wikipedia offers an introductory article on location theory.
Why is location choice so crucial when buying commercial land?
Choosing the right location significantly influences customer flow, employee satisfaction, and logistical possibilities. A poor choice of location can lead to significant financial losses.
What is the difference between macro and micro location?
The macro location considers the region, city, or district, while the micro location refers to the immediate surroundings of the site. Both levels are vital for a comprehensive site analysis.
What role does the development plan play when buying commercial land?
The development plan specifies what kind of development is permitted on a plot. Breaching this can lead to significant consequences. Compliance with the development plan and the building code is essential to understand development potential and restrictions.
Why is it so important to conduct a contamination check?
Contamination can result in considerable remediation costs and restrict the use of the land. Investigating previous use is critical to uncover potential pollutants or munitions.
Which cost factors should I consider apart from the purchase price?
In addition to the purchase price, consider the property transfer tax, notary fees, brokerage commission, and development costs. Calculating development costs early on is important to avoid financial surprises.
How important is transportation access for commercial land?
Good transport links are crucial for the accessibility of your business. Ensure good connections to public transport, the motorway network, and adequately sized access roads.
What does third-party usability mean?
Third-party usability means that the property is also attractive to other industries and can adapt to changing needs. Assessing the property's suitability for future leasing, considering potential demand in the area, is essential.
How can Auctoa assist with location selection?
Auctoa provides expertise in property valuation and analysis to identify the potentials and risks of various locations and make the best choice for your business.
