Unused potential in the cooperation between location promotion and the real estate industry

April 2021

Although location promoters and real estate players have a lot in common, the advantages of joint activities are still not being used enough. Those who exchange information, maintain personal networks and use online platforms can benefit.

At first glance, business promotion and the real estate sector differ significantly. While location subsidies are usually borne by the public sector – federal government, cantons, cities, municipalities – real estate service providers are in the vast majority of cases private companies. This means that the former are non-profit organizations and the latter are for-profit companies. Location promoters want to win companies over to their sphere of activity and keep them for as long as possible; they are therefore interested in a long-term relationship. Real estate actors, on the other hand, are usually deal-oriented, which leads to comparatively short customer relationships. What is at the center of the activities is only clear from the naming: locations on the one hand, real estate on the other.

More similarities than differences
At second glance, however, there are important similarities. First and foremost, there are the customers, who are often the same, since a company looking for a new location is always looking for a new property. In the opposite case, the same is not always true, but in most cases. Because when a company needs a new property, for example because the existing one has become too small, the evaluation process usually also gives thought to the advantages and disadvantages of a change of location. The second thing in common is the property itself: no company can do without the four classic production factors of labor, capital, knowledge and land. Both location promoters and real estate players support their customers in optimizing the land or property factor. In doing so, they make an important contribution to their customers and support them in meeting their goals.

Benefit from each other
Due to the common ground there is great potential to benefit from each other. For example, both sides can gain advantages in marketing: The real estate industry can serve as a potent multiplier of the message of a location promoter, because real estate service providers are in direct contact with companies looking for new properties. This channel is still underutilized by location promoters. Conversely, real estate professionals are very interested in knowing the real estate needs of those looking for a location as precisely as possible in order to be able to provide a competitive offer. This information can in turn be provided by the location promotion.

to create transparency
In order to be able to create synergies, transparency is first and foremost necessary: Instead of staying among each other, the promotion of the location and the real estate industry have to merge, establish common platforms and exchange information. Both physical and digital platforms are available to them for this purpose. Real estate fairs are a good opportunity to meet face-to-face, maintain existing contacts and make new ones. At the international level, the MIPIM in Cannes in March and the EXPO REAL in Munich in October each year. For more than 20 years, there has been a Swiss joint stand at both trade fairs, which allows Swiss companies and locations to present themselves at a reasonable budget. The IMMO'Messe in Zurich, which is held in January each year, has established itself in Switzerland. This is where real estate investors present themselves and meet market participants of all kinds. Although the IMMO 'has long since established itself as a meeting point for the industry, locations and their representatives are still seldom to be found there. In addition to the trade fairs, there is a wide range of congresses that offer opportunities to maintain contacts around lectures and expert discussions. In addition, location promoters and real estate players can choose from a large number of network events. They are offered by associations, interest groups, locations and private companies.

Online is catching up
In today's pandemic-ruled times, online platforms have gained in importance. On the one hand, industry experts can make themselves heard by appearing at webinars and ensure broad awareness. Examples include the Real Estate Brains or Metropole Insights discussion platforms. On the other hand, online databases have become established that can be used by location promoters and real estate professionals alike. For example, companies can contact swisscircle-member.ch
present. Realestate-experts.ch is ideal for individuals and top-projekte.ch for larger real estate projects. In addition to these offers, every market player is called upon to use social media tools such as LinkedIn or Xing for themselves.

Networking
There are hardly any projects that can be carried out on your own – be it as a location promoter or as a real estate professional. As a rule, every actor depends on useful information, benevolent market participants, efficient suppliers and / or cooperative partners. That is why a good network is essential. This requires personal commitment and a wise choice of platforms for maintaining and expanding one's contacts. Such networks are providers of such networks as SVSM, Swiss Circle, SVIT, RISC, ULI and Fiabci.

Ideas to improve collaboration
There are already numerous opportunities to intensify the cooperation between location promotion and the real estate industry. At the same time, however, there is also potential that is still largely unused. In this way, locations could present themselves on the major real estate portals and get in touch there with companies looking for a new property. Or more congresses or events could be organized that are aimed at both location promoters and real estate service providers. Ultimately, those offers will prevail which strengthen the participants' perception in the market, allow the exchange of experiences and support the maintenance of the personal network.

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