What term describes the economic significance of a property's location?

The term that describes the economic significance of a property's location is "situs." This concept refers not just to the physical position of a property, but also to the value that the location contributes to the property, often influenced by factors such as proximity to schools, shopping centers, transportation, and overall desirability of the area. In real estate, this intrinsic value placed on location is critical because it can affect demand, pricing, and investment potential.

Situs recognizes that even within similar properties, those in more favorable locations can command higher prices and greater interest. It encapsulates the idea that the location of real estate can significantly impact its overall marketability and economic value.