How Location Impacts Commercial Rental Prices in Switzerland
The price of commercial real estate is never consistent, location is often the most important value determinant, space is secondary. In Switzerland, there is a major impact of location factors in the cost of rental, which generates a high price dispersion within cities and between cities. A business organization that is in need of office space should know what motivates price variations among neighbourhoods, transportation, and regional centres.
These geographical aspects divide cheap space and high prices, and their comprehension will allow making smarter choices of real estate. Swiss companies that base their rental decisions without understanding the effects of location pay too much on space or sacrifice on essential location factors. The revelation in the way location influences commercial rent prices brings to view what determines the actual value of real estate and makes it possible to make sound strategic choices.
Favorable Geographic Location
The commercial rental price in Lausanne is dramatically determined by the geographical location. Lausanne is an economic centre of the French-speaking Swiss region (Suisse Romande) and is located on the Vaud Plateau with instant access to both France and Italy. The strategic location of the city renders it especially appealing to those companies that operate international business with the French and Italian partners.
The location of the city in Leman Basin, including Geneva and Vaud cantons, forms the compressed commercial demand. Firms that are in the competitive position of this economically relevant region cannot afford but to charge high prices that reflect on the business significance of the location in Lausanne.
Regional Economic Centers
The rental rate of an average office in Lausanne is about 3,485 CHF per month, however, the price is significantly affected by the neighborhood. Ouchy, Sous Gare and the Old Town are the premium areas that have a high demand, good standings in security, breathtaking lake view with green areas that fetch a significantly higher price. These regions are appealing to any company that places more emphasis on the quality of life of its employees and the impressions with their clients.
On the other hand, new neighborhoods such as the renewed Sebeillon industrial area are much cheaper in terms of rent and accommodate growth oriented businesses aiming at finding affordable space in an upgrading neighborhood.
Infrastructure Transportation Impact
The accessibility of transportation has a tremendous impact on the commercial rental pricing. The strategic location of Lausanne on the highway (Route 1) that links Geneva to Berne opens up regional students who commute to school. The CFF train station is a key network that links the regions of Switzerland besides providing international TGV access to Paris as well as links to other parts of Europe.
The properties adjacent to the transport centers will attract high prices as they will allow the employees access and meet clients in Switzerland and Europe. The emerging metro is also adding value of accessibility to the served neighborhoods which warrants the increase of rents.
Economic Specialization and Industry Clustering
The development of Lausanne as a technology and life sciences center has a great impact on commercial pricing. Large corporations such as the Philip Morris, Logitech, and Nespresso opened their office in the region, which made multinational corporations demand office space. The Biopole life sciences campus concentrates more than 130 companies and startups, which generates specialized demand of pharmaceutical and medical technology space.
The concentration in this industry provides pricing premiums to neighbourhoods that serve these economic activities- notably those areas which are close to the Dorigny campus and central business districts where access to the university and research centres is good.
Digital Infrastructure and Future Investment
Digital infrastructure is increasingly reflected in the modern commercial rental pricing. The extensive fiber-optic network of the city and the future multimillion investments of Lausanne in ICT infrastructure are some of the reasons why the city should be priced at the premium. IT and biotechnology firms rent more expensive space that has a high connection rate enabling their data-demanding measures.
Conclusion
The Swiss commercial rental price affects the location on a variety of levels: strategic geographic location, economic relevance of a region, characteristics of a neighborhood, the availability of transportation, the specialization of the industry, and digital infrastructure. Knowledge of these factors helps the businesses to make strategic renting choices that balance cost, accessibility and positioning. The Swiss companies can make their strategic goals making the best out of the available locations by having rigorous platforms where they can get the best location information and can be charged well; a transparent pricing system will help them make good decisions.
