Most people associate real estate agencies with helping to find residential apartments and houses, but real estate agents also help to find commercial property. In this article, we will explain its meaning and types.
Commercial real estate is a type of property that is usually used for business purposes. The importance of commercial property in Austria and in other countries is as follows:
⦁ Provision of business premises – commercial real estate provides space for offices, shops, restaurants, hotels, factories, warehouses and other types of businesses.
⦁ Investment and income – many investors and entrepreneurs invest in commercial property for the purpose of leasing or further developing the property for profit.
⦁ Storage and processing of goods – industrial and warehouse property is used for storage and production of goods, which is essential for supplying the market.
⦁ Job creation – locating businesses in commercial property helps to create jobs for the local population.
⦁ Development of local economies – commercial property contributes to the development of local economies, attracts tourists and creates prosperity in the region.
Commercial real estate in Austria covers a wide range of properties intended for business purposes. Here are some of the main types of commercial property in Austria:
Office space – there are office centers in Vienna, but they are not as widespread and popular as in other countries. Due to their conservative and aristocratic nature, Viennese prefer to locate their offices in the Altbau, especially in the center. Therefore, both large and small companies are looking for an opportunity to buy or rent an apartment in the central district that has been converted into an office.
For foreigners, it may seem unusual for a well-known law firm, real estate agency or financial services company to have its office on the 3rd or 4th floor of an old building. But for Vienna, this is not only the norm, it is very prestigious.
Shops and shopping centers – Shops and retail establishments are located in commercial districts and shopping centers to sell goods and services.
Hotels and restaurants – Hotels and restaurants offer hotel accommodation and catering facilities. As Vienna is considered to be a very touristy destination (13.2 million overnight stays in Vienna in 2022 alone), there are naturally many hotels and restaurants, so premises for this type of business are in high demand. Some of the hotel and restaurant business has lost ground due to the coronavirus, so many good premises are now looking for new tenants or owners.
Industrial property – includes plants, factories, warehouses and other premises for the production and storage of goods. Typically, these types of premises are located outside the city or on the outskirts, but Vienna has an extremely well-developed transport infrastructure, so there are no logistical problems.
Medical and healthcare facilities – hospitals, clinics, outpatient clinics and other medical facilities – also fall into this category. Vienna also has specifics with the location of private medical facilities. Very often, private medical offices (e.g., offices of narrow specialists such as dentists, otolaryngologists, neurologists, etc.) can be located not only on the territory of medical or office centers, but also in residential buildings. And not always even on the 1st floor. For the Viennese, the main thing is the neighborhood and accessibility for clients. The floor and year of construction are of secondary importance.
Entertainment facilities include entertainment complexes, cinemas, casinos and other entertainment venues. Vienna has a lot of entertainment centers for children and adults, but most of them are located away from the center. The center is a place of museums and cultural recreation.
Property for education – kindergartens, schools, universities, training centers and other educational institutions. Kindergartens and training centers (e.g. foreign language courses, driving courses, etc.) can be located in various locations – both in separate premises and in residential and non-residential buildings. For Viennese people, the main thing is that the premises meet their needs and legal requirements.
Land plots – land plots can be used for the construction of commercial facilities such as offices, shops or warehouses.
As you can see, commercial property in Vienna is very diverse. Some people need it for direct business, while others invest in commercial property to generate rental income. In any case, buying a commercial property in Vienna will mean making a profitable investment, as real estate in Austria is almost permanently growing in value.
If you are looking to rent or buy an office/warehouse or other type of commercial property in Vienna, the VigoImmobilien team will be happy to assist you.
