Physical Characteristics of Real Estate

Immobility and Importance of Location in Determining Value The most obvious physical characteristic of land is that it is immobile; it cannot be moved from one place to another. Because the geography is fixed, the value of a specific piece of real estate is heavily driven by its location, a concept often referred to in the industry as "situs" (the economic preference for a specific location). Since you cannot pick up a property and move it away from negative influences, the value is inextricably linked to the surrounding area. If the neighborhood improves, the property value rises; if the surrounding area declines, the property value suffers, regardless of how well the building itself is maintained.