The macro location describes the geographically distinct sub-market in which a property is located. It is usually the city or region in which the property is located. Cities and regions come about through the symbiosis of benefits that occur from the physical grouping of companies and people. A functioning macro situation thus serves as a basis for maintaining attractive property locations and is therefore a prerequisite for an investment. For this reason, the analysis of the macro location in the location and market analysis is extremely important. The analysis is therefore not just useful in the context of the investment decision. Rather, a constant review of the macro location is advisable for investors and owners.1
Generally, the relative importance of the macro location compared to the micro location increases as does the project and property size.
A distinction is made between hard and soft location factors in the analysis. After determining the physical extent and structure of the macro location, which is dependent on the location and the respective type of use, the following key hard location factors are analysed:2
In addition to the hard locational factors, the results of which can often be objectified, soft location factors such as the macro location’s image and its nature appeal should also be examined in the macro analysis.3