Category: People

«Together we can achieve more»

The Greater Zurich Area (GZA) initially comprised the cantons of Glarus, Graubünden, Schaffhausen, Schwyz, Solothurn and Zug bordering Zurich. Uri and Ticino are new. Why did you decide to take this step?
In the beginning it was Zurich, Schaffhausen and Graubünden, then over the years other cantons were added. Zug joined them in 2007, Uri in 2015. Ticino has been a member of the GZA since 2019. In order to become a member, an application must be submitted, which will be examined by our Board of Trustees. Cooperation should make sense for both sides. With the accession of Ticino, the Board of Trustees wanted to strengthen our technology skills in the Zurich economic area and expand the network. The technologies that are important to us, such as life sciences and mechatronics, are of particular interest. Ticino has a lot to offer here: For example, the Dalle Molle Research Institute, which deals with artificial intelligence.
Is the name Greater Zurich Area still appropriate when it includes so many areas further away from Zurich?
The name has long since become a brand – like «Switzerland» or «Geneva». We invented the name “Greater Zurich Area”, but it is not only used by us for a long time. The Ceneri Base Tunnel has brought Ticino closer to Zurich. Important research projects in Ticino work well beyond the Gotthard. Cantonal borders are completely irrelevant – but a functioning economic area is relevant for companies.
So it is conceivable that other cantons will join the GZA?
It is not planned. But if someone knocked, the same considerations would be made as with Ticino. In Switzerland a lot is voluntary. In other countries it is different: in Finland, for example, there are no regions or cantons, everything is decided in Helsinki. Of course, one can also be happy with a centralized organization. But we are organized on a federal basis, so the cantons can decide for themselves: Do you want to do location marketing in your own region? Or do you want to join forces and work with someone else? Our Chairman of the Board of Directors always emphasizes that our doors are open.
The number of resident companies from abroad in the GZA fell to 103 in 2019. What are the reasons for that?
Seen globally, there are developments that are anything but business-friendly. This includes the trade dispute between China and the USA or Brexit. In the last few years the uncertainty in the global economic area has increased. This worsens the investment environment. In Switzerland, we have been registering declining numbers of settlements since 2016. This development arrived with a slight delay in the Zurich economic area: the number of settlements only declined in 2019. Interestingly, the number of jobs in the GZA has risen anyway: The companies located there generated 40 percent more jobs than in the previous year. Projected over the next five years, a quarter more new jobs are planned than at the companies that settled in 2018. The quality of the projects has increased.
"Switzerland offers stability and reliability."
Then do you expect the numbers to continue to decline?
Definitive. We expect the corona pandemic to further intensify this global downward trend. The Organization for Economic Cooperation and Development (OECD) estimates that the global market will collapse by 30 percent this year. There are certainly industries that are even more successful than in the past. For example, those that specialize in digital tools. For video conferencing tools like Teams or Zoom, the share price has risen tremendously during the pandemic. In general, however, Corona is of course a damper for the global economy.
Why should a company choose its location in the GZA or in Switzerland?
Switzerland is chosen so that European business can be carried out from here. This requires the right specialists. These can be found in Switzerland or can easily be recruited from other European countries via the Free Movement of Persons. We are already very internationally positioned: We are not the center of Europe, but we are very central, especially in Western Europe. Switzerland also has good bilateral agreements with the EU and is innovative. We can also offer stability and reliability. Corporate taxes are cheap in this country. You don't come to Switzerland to pay high wages. You come to Switzerland because there are people here who earn high wages.
Does the GZA approach companies more or vice versa?
We have a double function: We market the economic area, but we are also the point of contact. However, customer inquiries only make up around 11 percent of all settlements in the cantons. We are open and check everything. But of course we invest our time and resources primarily in worthwhile projects. We actively acquire around 60 percent of all settlements and around 15 percent are recommendations from the strategically maintained network, which includes partner organizations, consulting firms and business lawyers.
Foreign companies are important as employers. How many jobs are you currently generating in the GZA?
The pure number of jobs for the settlements from 2019 was 651. These companies will create 1676 new jobs in the next five years. That is then 24 percent more than those of companies that settled in 2018. This is the second time we have commissioned a consulting firm to prepare a comprehensive analysis in this regard: between 2009 and 2018, at least 8,618 jobs were created through location marketing.
What other added value does the GZA create for the cantons it belongs to?
We contribute to the fact that the innovative strength is strengthened and that we remain networked above all with the growing markets in Asia. There are also certain cantonal added value effects within the cantons. Maybe someone works in Zug, but lives in Zurich. The nine cantons come together in the GZA to jointly pursue location marketing. Together you can achieve more. A single Swiss canton is too small to survive in international competition. We bring important interfaces together and see ourselves in the role of mediator.
How has the quality of the GZA location changed specifically in the last five years?
The uncertainties have increased. We see reasons for this in Brexit and the EU crisis, among other things. Italian banks are still a big question mark. The trade dispute between the USA and China and the unresolved relationship between Switzerland and the EU are also causing problems. In an international comparison, however, Switzerland certainly offers very stable conditions. The laws don't change overnight, taxes are neither suddenly increased nor unreasonably decreased. The tax reform is now through, and certain areas of technology have advanced extremely. In terms of robotics and drones, Zurich does not need to shy away from comparison with Silicon Valley at the moment. In Switzerland we score with qualified specialists: We have very good graduates from our universities and at the same time offer an attractive environment for the brightest minds from all over the world.
"The competition has increased."
How does the corona crisis affect the GZA?
It also triggered a surge in digitization in us. We travel less and work more virtually. This is likely to continue, or perhaps even become standard business practice. As before, we conducted webinars, but supplemented them with a question-and-answer session with experts in Korea, for example. This new format has been very well received. In general, we are doing video broadcasts at the moment instead of traveling to another country ourselves.
What consequences do you expect in the long term?
In the near future, more events are likely to be held in hybrid form. A two-day conference is planned in Zurich in September. This will take place virtually on the first day, and you can meet in person on the second day. The organizers don't just want to create something special for this year, they want to create something that gives you flexibility. Especially with regard to future similar scenarios.
What other challenges does the GZA have to contend with?
The competition has increased. When we started a good 20 years ago, there weren't that many efficient location development organizations. Today even the smallest countries and even cities have some. Another challenge: There are many foreign organizations that offer benefits. For example, grants for employment so that the recruiting process is less expensive for the company. Something like that is inconceivable in Switzerland, because tax money would have to be used for it. We also do a lot of persuasion – not everything is more expensive in Switzerland. And if someone earns $ 200,000 in the USA, he also earns it in London, Madrid or Amsterdam. In Zurich you may even have to pay less wages, because taxes here are cheaper for the individual than elsewhere.
How does the GZA counteract the restrictions and probably also the further decline in settlements caused by the corona crisis?
In the future, we will not only use social media channels for communication, but also for acquisition. We try to win new customers using a data-based approach.
The most important markets for GZA are the USA, Germany, China and Italy. Which other countries / cities is the GZA still concentrating on and why?
We have been active in Korea since 2014. In Israel we are just starting. As soon as the crisis is over, we can start with activities – everything is in place. We regularly check where we could still be active. For example, India was a focus market from 2006 to 2008. In the absence of results, however, we gave up on this again. If Russia or Brazil didn't have a recession, these markets would definitely be an option. Within the markets we serve, we select the regions according to the technology hotspots. ■

October 2020
"You have to offer your customers alternatives"

What exactly does Swiss Circle do?
Swiss Circle is the network for the Swiss real estate industry. We look after our around 250 members, network them with one another and support them with marketing tools. Our members want to get to know each other better, but also want to be more noticed in the industry. We also give them the opportunity to expand their know-how in special disciplines of the real estate industry.
How exactly does that work?
We offer various platforms: We are present at the major international real estate fairs such as MIPIM in Cannes or the Expo Real in Munich. We have been active on international stages for 25 years. At these trade fairs, we present our Swiss companies at a joint Swiss stand. In addition, we regularly organize networking events and various congresses on current real estate topics spread over the year. Online tools such as realestate-experts.ch complete our offer.
Important trade fairs will be canceled this year due to the corona crisis. How does this affect Swiss Circle?
We are creative and have created replacements for unusual activities. Including the online series “Real Estate Brains”. Here we produced a program online every Tuesday morning. This year we implemented the “The Marketing Round” congress entirely digitally via Zoom. We are launching the “Innovation Day” as a hybrid event: using two programs that we stream live and a print product that offers our customers another platform to present themselves. As a replacement for the Expo Real in Munich, which is not taking place, we are organizing the “Swiss Networking Circle” at Zurich Airport in October. Members who would otherwise have gone to Munich are given the opportunity to network and present themselves.
How are registrations for the Swiss Networking Circle going in autumn?
We have already received numerous bookings. However, we do not yet know how many guests we will actually be able to invite – that depends on the federal regulations for events in October. Certainly not everyone can take part. However, partners who are actively involved in the event will definitely receive a quota of invitations for their customers. We at the Swiss Circle will also be inviting a contingent of members. The need of our customers to meet again in person is definitely great.
"Immo21 takes place in a larger hall."
How are the online offers received by the members?
“Real Estate Brains”, for example, is very well received – we have 200 to 300 viewers at a time. The speakers come from Germany, Austria and Switzerland. We usually recruit the Swiss speakers from among our members. After the summer break, we will continue this format on a monthly basis until further notice.
How do you assess the current situation on the real estate markets?
The situation is controversial. The retail market is critical. The corona crisis acted as a fire accelerator, the retail trade had it difficult even before the corona. Hotel properties are another loser. Office buildings are likely to give way only slightly – we have to wait and see whether and how much home office will become established and how digitalization trends will develop. The housing market is stable – at best there are still long-term effects. But of course there are also winners: for example logistics real estate.
What feedback do you get from your members?
Real estate service providers such as facility and property managers are hardly affected. On the other hand, there is a certain reluctance to deal with transactions; trading is currently more defensive than before the crisis. This should be reflected in the sales of marketers or lawyers.
What long-term consequences do you expect due to the corona crisis?
I don't expect a long-term negative effect in the real estate business. However, it is possible that business will be a bit more resinous this year due to the prevailing uncertainty and the lack of personal contact. As far as the Swiss Circle is concerned, however, I am confident that next year events and trade fairs will run almost as usual again. Which changes will remain remains to be seen. The motto of the time is: be flexible and expect different scenarios. We do that too. If you want to get out of the crisis as unscathed as possible, you have to offer your customers alternatives.
Immo21, which is co-organized by Swiss Circle, will take place in January next year. Are there any changes due to the corona?
We have already reacted to the situation and with Hall 550 in Oerlikon we have chosen a larger location than before. In this way, we can offer a possibly still limited number of visitors more space so that the distance rules can be adhered to. This could also prevail in the future: that you have to factor in more square meters per participant.
What is your advice to young entrepreneurs in the real estate sector during this time?
Of course, they very much lack contact with the established industry. Young entrepreneurs are usually looking for investors and platforms to present their new ideas – and are dependent on growing quickly and showing success. The handbrake effect is certainly more serious for start-ups than for an established company. At the Swiss Networking Circle and the Innovation Day we have special offers to involve young entrepreneurs and give them preferential access. Since the exchange between young and established will continue to gain in importance in the future, Swiss Circle and SwissPropTech will increasingly appear together in the future. I would like to extend a warm welcome to all future-oriented real estate decision-makers! ■

October 2020
"The Limmattal is more than an alternative to Zurich"

Limmatstadt AG was launched 6 years ago. Where do you see your core tasks as managing director?
I see myself as a service provider and ambassador for the entire region from Baden to Zurich, within the Limmat Valley and beyond. In my job I am always on the move and bring people and ideas together across the cantons. Network is the be-all and end-all. I supply those interested in the location with information, open doors, join committees or drive projects forward.
What milestones have you reached today?
Limmatstadt AG has established itself as a relevant partner and regional player. In the past few years it has been possible to win important supporters for the idea of the Limmatstadt as a networked and strong living and economic area: first companies as shareholders, numerous municipalities as clients, then the planning association and various network partners came along. The public can also participate via public shares. We reach the region with the establishment and operation of various communication channels – from the print magazine “36 km” to the digital 3D Limmat city model to the daily “punkt4” business newsletter.
What are the next goals?
It is of central importance to continue to bundle forces and use resources sensibly. In other words: to enter into cooperations where it makes sense and to make the value of our platforms and networks even clearer in order to win further communities and partners. Anyone who wants to settle in the city on the Limmat or is pursuing a project idea must know that we have come to the right place. Image is also important in the competition for locations. The aim here is to showcase the advantages of the entire region.
At the beginning of 2019, Limmatstadt AG took over the function of Limmattal Location Promotion, the former association of the Zurich Limmattal municipalities. How important was this step?
This step was central. The location promotion of the association stopped at the canton border. Our sphere of activity is the entire region. The complex challenges do not stop at canton borders. The dissolution was preceded by a broad-based strategy process. The realization: The privately owned Limmatstadt AG is an organization with a track record, the establishment of which has been privately financed and ensures a seamless succession. The municipalities have new performance agreements with us, so they are our customers, and the bottom line is that they benefit from significantly more performance for the same money.
"If you want to settle in the city on the Limmat, you've come to the right place."

How popular is the Limmattal when it comes to company settlements?
There are over 80,000 jobs in the region, which are expected to increase by around 30 percent by 2040. Due to the lively construction activity, we can offer ideally located areas, especially for retail and services. The preferred location, the proximity to leading educational and research institutions and the good development make the location extremely attractive. With the Limmattalbahn we get an urban mode of transport and even better connections. This will also attract companies that have not previously had the Limmat Valley on their radar.
How realistic do you think a merger of the communities Schlieren, Urdorf and Dietikon will be in the next 15 years?
It is undisputed that the municipalities will have to intensify their cooperation in the future, because problems of regional scope can hardly be dealt with at the municipal level alone. But I don't think that mergers are always profitable. If we look at the small parts in our region, a merger, especially smaller communities, could certainly help to gain more strength. But I don't think a major merger is realistic. There are, however, municipalities in the Aargau Limmat Valley that are willing to merge: The municipality of Turgi is aiming for a merger with the city of Baden.
Many residents fear for their identity in a merger.
This argument is always at hand. Just because you come together to form a political unit, you don't have to lose your local anchoring. A new affiliation can also arise. Every change harbors loss and gain. The question is what outweighs. With an early, open dialogue, politics can succeed in picking up the population, feeling where the shoe pinches and identifying opportunities. It also takes courage from a local council to touch this hot topic. As the example from Turgi shows, this can be very promising.
What do you think of the objection that a Limmat city lacks history and the past and that the Limmat valley could therefore never become a single city?
Every story has a beginning. Why can't the change from an agglomeration to an urban area start in the 21st century and create identity for future generations? I find it rather absurd that we are still guided today by political borders that are more than 200 years old. The Limmat Valley is already a spatial unit – connected by the Limmat and embedded in hills with forests and vineyards. Soon the tram will connect the region and the people even more. The best prerequisites so that a new togetherness can arise.
The Limmattalbahn is under construction. The project was particularly controversial among residents of the Limmat Valley. Did you expect this reaction?
A local concern always makes the emotions go high. I was surprised by the violence. This, too, is an example of how important it is to maintain a close dialogue with the local population on regionally important projects. That went wrong in the first campaign. But in the second vote, the Limmat Valley voted in favor of the construction by a large majority. The Limmattaler have understood that half a Limmattalbahn makes no sense.
"It is a good sign that the federal government and the cantons believe in our region and are investing millions."
Why does the Limmattal need the Limmattalbahn?
The railway means a long-term upgrade for the entire region. It's a generation project. One argument was always: Repentance does it too. But a bus is not a commitment to a region. The Limmattalbahn are rails that will be laid in the ground for the next few decades. Every stop is a nucleus where something new can arise. A city emerges where a tram passes. It is a good sign that the federal government and the cantons believe in our region and are investing millions.
Isn't there a risk that the area will be paved too much with apartments, workplaces and streets?
On the contrary: the railway helps to channel growth and to protect certain places. That is why the Limmattalbahn does not run along the village-like right side of the Limmat. That would develop
trigger flare-ups that you don't want there. The train travels where there is already the greatest potential today, where most people live, where traffic flows and where unused properties such as the Dietiker Niderfeld are located.
A lot is being built in the Limmat Valley. Schlieren, for example, has already changed a lot. Completely new quarters have also emerged in Dietikon. Will the building potential soon be exhausted?
The large Limmattal industrial wastelands are now being converted into city quarters. In the future it will be more about internal development. We have to be careful with the limited ground. Ultimately, this is extremely ecological. A pulsating and attractive city needs a certain density of people, offers and uses. Transport is also part of it, both private and public. A clever network of cycle routes in the flat valley floor can relieve congested roads. This potential is far from being exhausted.
Can the Limmattal compete with the Glatttal?
No question about it, we are the two most attractive boom regions. I envy the airport region and its managing director Christoph Lang for some companies that we would also like to have as taxpayers. At the same time, I am glad that we are not so intensely concerned with the airport issue. As location organizations, however, we are set up differently. The airport region is a very successful business network with countless events throughout the year. Our focus, however, is also on society and urban development.
How deeply is the idea of a “Limmat City” anchored in the minds of the Limmattal population?
If you were to do a street poll now, the result would likely be sobering. Some would say this is Zurich, others Baden. And that's exactly what we're building on: we're reinterpreting the term Limmatstadt and charging it positively. It serves perfectly as a bracket for the region between two strong poles. We do not place the Limmat Valley on the edges of two canton areas, but in their center.
What measures should this perception be further supported?
By consistently working to make the region and all its advantages even better known to the resident population as well as to companies and those interested in settling in. For this we need all the communities behind us and a steadily growing sponsorship. We feel that our idea is becoming more and more anchored. In Spreitenbach, for example, the largest coworking space in Switzerland recently opened under the name “Office LAB Limmatstadt”. The term Limmatstadt is intended to convey precisely this future-oriented new self-image to the outside world.
How should the Limmat Valley be perceived by the population in five years?
As a place where you want to go, a destination. The Limmat Valley is more than an alternative to Zurich. It should be perceived as a self-confident region that has managed to shed its dreary aggloimage and transform itself into an attractive urban space that surprises again and again with its contrasts and peculiarities. The development of the last decade is enviable – including the renewal. It could also be different: standstill or emigration – those would be problems. We can count ourselves incredibly lucky with the dynamism and definitely look positively into the future. ■

October 2020
"Large projects are becoming more and more difficult to implement"

You are a politician and an entrepreneur. At the end of 2019 you withdrew from active politics, why?
After having been active on the cantonal council for 15 years and a total of 13 years on the municipal council, it was time to close this chapter. I wanted to make room for fresh, new employees and have more time for my family, my employees and for new projects.
As a politician, you are campaigning for a S-Bahn station in Silbern, for example, or for an elevated railway between the Niderfeld development center and the Silbern area. How important is such a transport connection for these areas?
A transport infrastructure is always important for a region. The Limmat Valley has good infrastructures, but we still have a few bottlenecks. The S-Bahn station Silbern could provide a great relief for the area Silbern-Lerzen-Stierenmatt and later also for the Niderfeld. The planned elevated railway between these areas would of course be the ultimate – especially if the Limmattalbahn were then directly connected to the new station.
Has there been any progress yet?
Unfortunately, the wheels of politics are very slow. It takes patience and tenacity. The concern of an elevated railway is deposited. It is currently also actively being used in the planning for the Niderfeld area. The S-Bahn station in Silbern is anchored in the cantonal structure plan with a high degree of urgency, but we are still biting into granite at the federal level. It is believed that the traffic problem of the bottleneck in the rail link between Zurich and Aarau must first be resolved. But we're staying on the ball.
You are the fourth generation to run the family company, J. Wiederkehr AG. How strongly is your political commitment linked to representing your own interests?
I have always deliberately excluded executive activity in order not to be confronted with accusations that I am doing politics for my sake. Of course, my political experience also helps me professionally. I know how certain mechanisms work. In this respect, my political work definitely benefits me. But I would like to use this knowledge in the interest of the common good and not to make a profit for myself and my company. I am particularly committed to the concerns of the trade and homeowners.
You are one of the three largest landowners in the Niderfeld. How did that happen?
Most of the land we own goes back at least three generations. In addition, over 30 years ago we had the idea of creating a storage space for our scaffolding company. So more plots were added – but unfortunately the idea could not be implemented, but we kept the land.
Does such a huge reserve of building land like the Niderfeld get your “building blood” going?
Not only. I am worried because I have noticed that in Switzerland and the Canton of Zurich in particular, large projects are becoming increasingly difficult to implement. Just think of the football stadium in the city of Zurich or the congress center. Large projects in particular have many hurdles to overcome. The density of regulations is now very high. Such rules were often created in the past and are not very helpful for the development of a new area. Here, too, it takes patience and persistence so that in the end something beautiful emerges on the Niderfeld.
Would you be given a free hand, what vision do you have for the Niderfeld?
I would not have done it the way it is now planned. Dietikon already has many beautiful local recreation areas. I would have invested the money to upgrade the existing local recreation areas and make better use of them. It will be a great challenge to fill the very large park in Niderfeld with life in a meaningful way.
What is the current status of the planned project?
The planning work is still in full swing. The neighborhood plan has now been submitted to the canton for review. We are eagerly awaiting your feedback. But it will still be a long and arduous road.
Are you confident that construction can start in 2028?
I don't dare to give a year. A few years ago there was still the opinion that construction would take place first in the Niderfeld and then the Limmattalbahn would come. Today it is obvious that the Limmattalbahn will travel through the area long before construction begins.
How did you experience the change in Dietikon over the past ten years?
I even go one step back: When I was in school, Dietikon was the third largest city in the canton of Zurich with around 25,000 inhabitants. Dietikon then did not develop much for many decades. In contrast, Uster practically exploded. Only in the last few years has Dietikon grown again with the development of the Limmatfeld, for example. But there is still a lot of older building fabric that should be renewed.
What will Dietikon look like in five years?
Not too much will change in five years. The Limmattalbahn will run safely. Hopefully by then we will have the traffic more or less under control and have implemented the accompanying measures for car traffic. Personally, I think it's good when change happens steadily and not in one fell swoop. What is being built today will be older again in 30 years. Therefore, in my opinion, regular constancy is better for the development of a community or city.
Why is it worth living in Dietikon?
I particularly like the local recreation areas. Even if you live in the center of Dietikon, it only takes a few minutes to get to the Limmat, which offers kilometers of walking paths. We also have the beautiful Guggenbühl forest. In contrast to other regions, the local recreation areas are not completely overcrowded.
You are a shareholder in Limmatstadt AG. What made you take this step?
I am fascinated that the Limmatstadt tries to open the focus, to see the Limmatal broader – beyond the canton's borders. She dares to take a visionary look at the region. Nobody knows what the Limmat Valley will look like in 40 or 50 years. Nevertheless, it is important that we also deal with such ideas. I think the city on the Limmat is a good platform for this.
The Limmat Valley is seen by the Canton of Zurich as a growth region. Isn't there a risk that the area will be paved too much with apartments, workplaces and streets?
I don't think this risk is very great. The settlement area is excluded from the cantonal structure plan. That cannot increase in the next 15 years. The recreational areas as well as green areas and forests are also excluded. I think we would do well if we take appropriate care of our natural spaces and carry out upgrading measures here and there.
The Limmattal is also heavily burdened with traffic infrastructures. How big is this problem today?
That is perhaps the fate of the valleys, that they are also often a connecting axis. The advantage is the good infrastructure, which makes the Limmat Valley attractive as a place to live. This is also a huge advantage for the economy, but it still harbors burdens. A certain need for infrastructure has built up. Too little has been invested here in recent years. It is important that traffic flow on the motorway. This is the only way we can prevent alternative traffic through the cities and municipalities.
What could the solution look like?
The Limmattalbahn will have a certain capacity and is certainly a good solution. But the expansion of the Zurich-Bern motorway with an additional lane, the expansion of the Limmattaler Kreuz and the expansion of the Gubrist should help to get the traffic on the motorway flowing again and to stop crawl traffic through communities. We still have to fight for Dietikon to finally get a usable bypass option – be it an above-ground road or a tunnel, as the idea was decades ago. A bypass road is provided for in the cantonal structure plan. But this is difficult to achieve because it would mostly lead through an inhabited area.
How realistic do you think it is that the public will perceive the Limmat Valley as a “Limmat City” in the coming years?
De facto Dietikon has been a city for decades, but many residents still refer to it as a village. Ultimately, it is a question of perception whether we are talking about a city or a village. For me it is important that the people in our region feel comfortable, actively contribute and help – in the associations as well as in politics. For me that is more crucial than the question of whether the Limmat Valley is a village or a city.
Her hometown is Dietikon. A city that – some say – always falls in between. Dietikon is too far from Zurich and too far from Baden and is therefore more on its own. How do you see it, does Dietikon manage to integrate into the city on the Limmat and how?
Border regions are always faced with particularly difficult challenges. In this respect, I welcome the Limmatstadt's initiative in that it looks at the region across borders and promotes cooperation beyond the cantonal borders. The Limmattal lies in two different cantons. This also brings certain chances that you can possibly benefit from the advantages of both cantons. When it comes to shopping, Dietikon has had a difficult time for decades. That will probably not change in the next few decades.
After the last large areas in Dietikon have been built over, will there still be room for major new projects?
I think there will be no additional settlement area for the next 30 years. The focus will be on the densification of the existing settlement area. This should be done as tolerably as possible for the population. The corona crisis has shown that people value enough space in their home or their own green spaces and privacy. I also see a chance here that we can do a lot better and more livable than some large, anonymous cities. ■

October 2020
Built Too Much? The fact that the real estate market no longer absorbs everything is an opportunity.

Has too much been built in Switzerland? Maybe too much in the wrong place? It is true that one cannot speak of THE Swiss real estate market, as it is divided into different sub-markets, but the absorption time has generally lengthened, say the seven real estate developers who met in June for the HIG expert discussion. They assume that a basic set of apartments is always needed – just where and which, that is the question. A question that leads to rethinking quality.
“Quality before quantity” – this phrase was used fifty years ago. But while quality was then associated with luxury, today people think of needs-based, sustainable building. This may be more expensive to create, but it pays off in the long term. The fact that the market no longer absorbs everything is also a gain. After all, everyone benefits from better quality – residents and users as well as creators and investors.
“Perhaps too much has been built and the result is interchangeable apartment blocks. That is why we are now dealing more intensively with the issue of quality. That is the positive aspect of this development »
Roland Thoma
The ABC of the situation – quality over quantity
Around 75,400 apartments were vacant in Switzerland in 2019 * and the trend is rising. While two or three years ago the sales or letting rate when a property was completed was an average of 95 percent, today it is only 80 to 85 percent. The more peripheral the location, the longer the absorption time. In the urban centers there are up to 1000 inquiries for an apartment, and because the capacities are limited, the demand has to shift. There is also solid demand beyond the centers and A locations, for example for condominiums in the medium and low price segment. On the other hand, the once coveted luxury apartments are also among the slacks in the centers, while rental apartments in the low price segment are absorbed almost everywhere immediately.

So it's about the right location with a product for the right segment. Nevertheless: "In structurally weaker regions, even in the middle segment, we need longer than two to three years ago," says René Frauenknecht from Steiner AG, for example. “Today we are keeping our hands off places that already have high vacancies and are reluctant to develop in B and C locations”. The risk of doing so is due to the relatively high pressure to acquire: “There are still large pension funds that are very aggressive on the market and secure land. It is very important that the quality of the location comes before quantity. That is new. Up until a few years ago you couldn't go very wrong if you had acquired a plot of land in a bad location, ”says Frauenknecht. “The low interest rates can also lead to wrong decisions, as risks may not be properly assessed. The wrong product in the right position no longer works today, ”adds Tobias Rotermund from Odinga Picenoni Hagen AG.
The ratings from analysts such as Fahrländer or Wüest Partner are an important basis, say the developers, but these location analyzes have to be verified and interpreted on site in order not to simply repeat what has worked in the past. "Most of the location analyzes are data-based and digital," says Marc Lyon from Implenia Schweiz AG. «If we strictly followed the software's suggestions for our development strategies and product definition, we would always have the same without innovations. We would just make a copy of what has been built up over the past few years. These data-based foundations are indisputably important, but human interpretation is really necessary. We perceive a property in a completely different way and have a completely different reference when we get an idea of the location and not just look at the property via Google Maps and Street View ».
"If we were to strictly follow the software's suggestions for our development strategies and product definition, there would be no innovation."
Marc Lyon
As simple as it is convincing – new concepts
Once the potential of a place has been determined, it is a matter of developing a future-oriented concept. How can this look?
Since an automatic price increase is no longer readily accepted by users today, space efficiency is the focus of the developers. It is achieved, for example, through a reduction in space, compact floor plans, prefabricated products, standardized construction processes and the elimination of gadgets. The result doesn't have to be zero-eight-fifteen. "You can achieve good quality even in difficult locations with simple but convincing architecture and inexpensive production with local companies", is Tobias Rotermund's experience. Large balconies are popular and not necessarily expensive, good furnishing makes up for the missing square meters and architecture can be as simple as it is convincing.
You can also achieve good quality in difficult locations with simple but convincing architecture and inexpensive production »
Tobias Rotermund
As far as the variety of apartment typologies is concerned – it is more expensive to build, but it is useful for renting in the long term. Other components that affect the quality of living are accessibility, exterior design, sustainability, mobility and neighborhood. "There are a whole range of options for diversifying rental living and for setting yourself apart on the market," says Valentin Müller from UTO Real Estate Management AG. “These include residential typologies that focus on a specific target group as well as integrated mobility concepts that optimally network the apartments with their surroundings. And not to forget: the quality of the settlement. We are talking here of 'living space', of spaces with a high quality of stay. Concepts are required for this. With a good development, you can create a good micro-location that meets human needs ».
But what needs does the specific target group have at the specific location? Do people want representative architecture or identify with the place where they live? Do you value neighborly exchange or do you prefer privacy? Do you accept the lush, green outdoor space as compensation for the B or C location? … Who determines what quality is? The architecture elite? The users?
A central finding in real estate communication is that the involvement of those affected promotes the acceptance and quality of a project. In addition to the quality of the product, the quality of the development process becomes more important.
“Whether a project is accepted depends not least on the involvement of the population”
Claudia Siegle
"The early involvement of the population in the Mattenhof project in Lucerne South has paid off," says Claudia Siegle from Mobimo Management AG. “It is important that people can identify with the place where they live. In this case, this includes the creation of neighborhoods. In the Mattenhof, you don't just live in a residential building, but in a mixed-use area, where you can network with each other using apps, for example ». For Tobias Achermann, former CEO of Zug Estates AG, the dialogue with those affected has also proven its worth: “In the further development of the 'Metalli' district, we have had good experiences with involving the Zug population. Over a thousand people contributed their thoughts and suggestions. I see this procedure as the cornerstone for the further course of a project ».
Involving the population not only benefits the product and its future users, but also improves political acceptance. For example, the claim that too much is being built appears regularly in the media and is a difficult argument in referendum battles: “The construction industry is often perceived as a driver of growth that is not welcomed everywhere – especially in the peripheral and rural areas people get the impression that building is being done primarily because investors have to invest money and not because it meets a need. Allowing those affected to participate in a project and creating real needs-based justice not only increases the quality, but also the social and political acceptance of a project ”, is the experience of Werner Schaeppi, an expert in construction and real estate communication.
Innovation versus bureaucracy – problem child on the ground floor
The development of the industry has meant that not only the real estate projects, but also their creators have to position themselves. For example through innovations such as a CO2-free energy system and building with wood in the “Suurstoffi” in Rotkreuz, which Tobias Achermann mentions as an example. Or through innovative mobility concepts that are developed and implemented by UTO Real Estate Management AG. In general, the company is committed to innovation, says Valentin Müller. This is a mind set that flows into the corporate culture and flows into the development projects. However, new concepts also need staying power, for example running the gauntlet through the density of regulations.
The number one problem child for the developers is ground floor usage. Bringing ground floors to life with commercial uses is difficult, and this will become even more acute with increasing online trade and changes in the retail sector. The hygiene measures in the context of new viruses such as Covid-19 are also difficult to assess; for example, long-term guidelines such as distance rules would increase the space requirement in the trade. Innovative concepts are required, especially for ground floor uses, but these often fail because of the long-lasting planning instruments. Because if a development plan is ten to fifteen years old, it may no longer meet the current requirements.
“Why should there be no residential use on the ground floor, for example?” Ask the developers. The fact that commercial ground floor uses per se generate a lot of foot traffic is a romantic notion. Ground floors must be appropriate to the situation and location and match the district infrastructure. “You have to ask yourself whether the development with a ground floor will be more attractive,” summarizes Roland Thoma from the HIG Immobilien Anlage Foundation. "A bookstore is not attractive in terms of returns and has to be cross-subsidized, but it can perhaps offer the neighborhood added value".
"Innovation is rooted in the corporate culture and flows into the projects"
Valentin Müller
Building construction and home office – a look into the crystal ball
What's next Will the market be saturated twenty, thirty, fifty years from now, and will other investment activities be needed? According to the participants in the HIG expert discussion, there will be a shift in the area of building construction from new buildings to modernization, renovation, extension and conversion. The area of infrastructure will grow with public buildings such as hospitals and railway maintenance etc., and the topic of sustainability will also continue to establish itself. "Today, certain sustainability principles are part of the development of a project," says Tobias Achermann. In addition, age-appropriate building is a major issue: “By 2030, the 65+ age group will increase by 30 percent. As an investor and developer, you are betting on the right card if you position yourself in this segment with appropriate infrastructure and community concepts, ”says Achermann.
"If you position yourself in the area of age-appropriate building today, you are on the right map as an investor and developer"
Tobias Achermann
Opinions differ on the topic of home office. The developers report that the joint creative process suffered enormously during the corona lockdown. For example, study assignments had to be postponed because the architectural offices could not be as productive as usual in the virtual exchange. Other areas, on the other hand, work very well in the home office. They open up the potential for a future in which there may be new forms of work, but at least less commuting. How this potential will be used cannot be foreseen at the moment. On the one hand, many companies are bringing their employees back into their company premises, on the other hand, industries such as the New Economy are driving the home office trend. For the construction of the future, home office would require more space and flexibility of use in the living spaces, which, however, collides with efforts to build cost-effectively by reducing space.
Back to the ground floor once again: Would co-working spaces be conceivable here, for example, which expand the home office model? Perhaps as part of a sharing economy, or also non-commercially as an extension of the classic common room? Some developers have conceptual thoughts on this, but they stand and fall with whether it will be possible to get the authorities on board. As a developer, waiting for the development is seldom the right attitude. ■
* Federal Statistical Office FSO, collected on June 1, 2019, www.bfs.admin.ch

September 2020
"Because of the Corona crisis, all investment projects will probably be put on hold"

Mr. Allemann, there has been a structural change in the Swiss hotel industry for a long time, with a trend towards larger hotels. Nevertheless, almost 90 percent of the hotels have fewer than 55 beds. How are these companies responding to this change?
The biggest problem are businesses with ten to twenty rooms and 15 to 30 beds. These houses are struggling to be profitable. Many small businesses, however, have a very large share of the catering industry, some of which generate over eighty percent of sales. The hotel industry is not part of the main business there.
Hotel guests are becoming more and more demanding. How can the aging hotels keep up with this trend?
This is actually a problem. We have many plants in Switzerland that were built at the end of the 19th century and the beginning of the 20th century. These often have fewer than thirty rooms and are very entertaining. If you are in destinations that are no longer as attractive today, such as transit routes, this is an aggravating circumstance. Missing frequencies then automatically lead to profitability problems and pent-up maintenance.
Does the operation of a hotel require high investments?
Yes, because the hotel industry is very investment-intensive. A hotel should be completely renovated after thirty to forty years. Depending on how trend-oriented or traditionally timeless a hotel is architecturally positioned with its furnishings in the market, shorter renewal cycles are necessary, especially for the rooms.
Do the hotels generally have the necessary financial resources to carry out the necessary renovations and refurbishments?
In principle, investments should be financed from cash flow. In recent decades this has become increasingly difficult for many companies, also because of the various crises. At the moment, of course, especially because of the Corona crisis. In the luxury sector, there are often patrons who have either fallen in love with the house or with the region and are ready to invest in hotel properties. They see the motivation of their investments not only in economic terms, but as an «A-fonds-perdu-contribution. In this way, their hotel operations achieve their extraordinary positioning in the market. I see the critical segment in the middle-class hotels, which because of insufficient occupancy or insufficient positioning are unable to make the necessary investments or can only generate them through borrowing.
Does your association financially support the renovation of hotels?
No, this is not the association's task; we would not have the resources to do so either. The association has the competence to offer and supports its members to be competitive. We have built up a network of specialized consulting firms that can support our members in a wide variety of subject areas. We also work very closely with the Swiss Hotel Association (SGH), which has the specific financing expertise.
This means?
The SGH is a federal instrument to promote the accommodation industry. Subordinate to the banks and subsidiary to private donors, it can grant loans for investment projects to hotels in tourist areas and health resorts.
What other challenges need to be tackled?
Succession arrangements are particularly difficult for companies with an investment backlog and / or over-indebtedness. This is practically impossible within the family or cannot be expected of the children. Since the second home initiative was adopted, it is practically no longer possible to convert hotel properties. Demolition is not an option, especially for listed properties. Complete renovations or partial re-use are also very costly due to the requirements of monument protection. So there is still hope of finding a patron. Unfortunately, these are not just in front of the door. If the substance of the house is still intact and there is potential for demand in the destination, I see the merger of several companies as an alternative to cross-company cooperation as an opportunity out of this dilemma. For example, by bundling purchasing, costs can be saved and more sales can be achieved with joint marketing activities.
What advice would you give a hotelier: renovate, demolish or try to get a loan?
Look, one criterion is the existing building fabric, especially for hotels from the turn of the century. However, if only the shell is historical, this hotel hardly offers guests any incentives to stay here. Keeping a house steeped in history alive takes a lot of personal commitment. First of all, it is important to deal with the era of hotel construction. This requires a certain affinity with the history of the hotel. This also has to be told. So you need someone who is willing to renovate the establishment of the company gently and with great sensitivity and to bring it up to the state of today's guest needs. ■

August 2020
Andreas Zettel: “The new Spatial Planning Act requires active management of development priorities”

Mr Zettel, the canton of Lucerne, all Lucerne municipalities and network partners from business and industry are making a financial and non-material commitment to Lucerne as a growing business and residential location. How do you rate their success?
If we look back over the last few years, we can see the dynamic development of Lucerne as a business location. Between 2012 and 2017, the number of companies and jobs grew at an above-average rate compared to the rest of Switzerland. Over 2,000 companies and more than 15,000 jobs were created across the canton during this period. That is a national record. The joint efforts have therefore paid off. Last year, the number of companies again increased by over three per cent.

What makes the canton of Lucerne particularly attractive?
I would emphasise the attractive combination of various location factors. Ultimately, this is what defines the quality of the location. In addition to the coherent hard factors such as low taxes, availability of labour and good accessibility, the canton of Lucerne is also scenically attractive and culturally exciting. Many tourists visit the Lucerne region every year. The tourist offers
the local population also benefits directly from the tourist offers.

Back to the hard facts. Are there still areas available for companies to set up and develop?
The market has indeed changed considerably in recent years. The availability of building plots and developed workspaces is a key challenge for the future. The new Spatial Planning Act sets tight limits. Zoning is only possible under certain conditions. As a result, the focus in future will clearly be on inward development and better utilisation of land. This also affects companies to a large extent, especially local SMEs. The property industry in particular is called upon to create new, attractive and affordable offers for these businesses.

Where do you see local opportunities for new businesses?
Attractive new areas are being created in the new city centres of Lucerne South and Lucerne North. In the centre of the city of Lucerne, development is limited in terms of space, i.e. development here is taking place within the framework of site developments, which have to fill the last gaps between buildings and integrate into the existing city. From a regional perspective, this means that the city of Lucerne is expanding as a functional area and new, attractive city centres are emerging in the surrounding municipalities, which are excellently developed and can offer a new urban quality. Personally, I am a little concerned about the purely employment zones, as these have often been put to other uses in the course of inner-city development without any replacement. These areas are then lacking in commercial space.

So these areas are a scarce commodity?
Well, this impression can indeed arise. However, a closer look reveals that there are still a considerable number of plots of land in the canton of Lucerne that are zoned but not yet developed. The question here is whether the landowners want to develop at all. We are noticing a certain tendency towards building land hoarding, which is clearly not in our interests. However, sometimes there is not only a lack of will, but also simply a lack of knowledge about how these areas could be developed. The prime sites in particular need to be developed very cleverly and sustainably so that the next generation can also benefit from them to the maximum.

What is the development strategy in the canton of Lucerne?
Twelve so-called cantonal development centres (ESPs for short) have been defined in the current structure plan. These are large-scale employment areas in well-developed locations. The aim is to achieve qualitative development, whereby the coordination of settlement and transport also plays an important role. The ESPs are a central element of Lucerne’s location policy and an important instrument of joint economic promotion by the canton and municipalities.

Where are these development centres located?
Due to their economic potential, they are orientated towards the main transport axes of the canton of Lucerne. They are mainly located in areas with good transport links, both by car and by public transport.

What is the status of these development centres?
Very differently. While the Lucerne South and Lucerne North areas in the Lucerne city region, for example, are relatively advanced and are already being implemented, there is considerable potential for catching up in the two regional centres of Hochdorf and Willisau, for example. It is these areas that will increasingly become the focus of investors and developers in the coming years.

Where can I find out more about the individual development centres?
Investors and interested companies can get in touch with us, as we have a good overview of the status of these areas and know all the contacts. In addition to the local municipalities, the four regional development organisations in the canton of Lucerne are also key to the development of these ESPs. These are LuzernPlus, Sursee-Mittelland, Region Luzern West and Idee Seetal. The positive interaction between the state and the economy is a core element of our joint economic policy. We want to further improve this. ■

March 2020