SBLA Commercial location analysis · Switzerland

Rent-to-turnover ratio

Annual rent relative to turnover: the only measure that allows two locations to be compared.

Comparing two units in francs per square metre says nothing until expected turnover enters the equation. An expensive unit on a busy street may represent a lower ratio than a cheap unit with no passing trade.

The acceptable ratio depends on the activity's gross margin: a low-margin activity bears only a low ratio. The prudent rule is to compute it on the low turnover scenario, not on the hoped-for one: a rent that is only bearable in the best case is a rent that is too high.

Related notions

Where this notion is used

The figures, canton by canton

Population, income, benchmark commercial rent, taxation and flows — official data, refreshed at every import.

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