Standortrente

Standortrente is a concept in economic geography and urban economics that describes the portion of a site’s rent that stems from locational advantages rather than the costs of production alone. The term blends Standort and Rente, and is used to analyze how place-specific factors generate an economic surplus for property owners and tenants.

Locational advantages include proximity to customers, access to transport and logistics networks, agglomeration economies from nearby firms and skilled labor pools, public infrastructure, and regulatory or tax conditions that favor business activity.

Measurement: researchers estimate Standortrente as the residual rent after deducting standard operating costs and a normal return on investment, using methods such as hedonic price models or land-value analyses.

Implications: Standortrente influences land values, location decisions, and urban inequality; it motivates infrastructure investment and revenue capture policies such as land value tax or development charges.

Limitations: isolating locational rents from other economic rents is methodologically challenging; estimates can be sensitive to model specifications and data.

Examples: in a city center, a retail property may exhibit higher Standortrente due to foot traffic; near a port or airport, logistics facilities may capture location rents.

See also: economic rent, Standorttheorie, agglomeration economies, hedonic pricing.