Basel is building the future with responsibility

Samuel Hess, Co-Head of Economy Basel-Stadt, on Basel's new location package, the balancing act between growth and a shortage of space and the role of innovation and trust for a dynamic business location.

Mr. Hess, you have been involved in the Basel economic region for many years in various roles. What milestones or formative developments have you particularly remembered during this time?
Today, politics and administration are much more interested in the needs of the economy than when I started working for the canton. Visible examples of mutual trust are the site developments by Novartis, Roche and Lonza and the multi-billion euro investments by these and other companies at the location. In addition to nurturing existing companies, Basel-Stadt has also massively increased its promotion of innovation. Since 2024, almost 68 million francs have been invested over eight years in nine programs in the areas of life sciences, digital innovation and the sustainable economy. The latest addition is the Basel location package. Depending on the budget situation, the canton is investing between 150 and 500 million francs per year in strengthening the attractiveness of the location. Almost all of the money goes to companies in Basel.

Basel is considered one of the most dynamic business locations in Switzerland.
How do you assess the current economic situation in the canton of Basel-Stadt?
Thanks to our industry structure, Basel-Stadt is doing well economically. The erratic economic policy of the USA has hardly left any traces, even if it does pose challenges for our companies. The current position of the location can be seen, for example, in the cantonal competitiveness indicator of UBS, where Basel-Stadt is again in second place of all Swiss cantons this year. Or the triple A rating that the rating agency S&P has once again awarded the canton. Both encourage us to continue on our chosen path – as an innovative and reliable partner to the economy.

What is the current focus of location promotion for urban areas and residential construction?
The cantonal development plan envisages a population and employment target of 220,000 by 2035. People need living space, but also areas to work and ideally short distances between home and work. We strive to provide companies in the canton of Basel-Stadt with sufficient available high-quality space as a locational advantage. A particular focus here is on securing production space and an optimized supply of space for scale-ups.

What are the challenges posed by a shortage of space and high demand? How is Basel-Stadt solving these?
A major challenge in Basel-Stadt is the competition for space in the limited space available due to cantonal and national borders. We often hear from those involved in real estate project development that it is not a problem to build upwards in Basel. It is also important to make optimum use of the potential of the transformation sites in order to create more space for living and working areas.

What are the most important findings from the Basel location package for site development?
The Basel location package is attractive for site developers and investors, as taxable companies in Basel-Stadt that spend on research and development, parental leave, climate protection and energy efficiency can receive substantial subsidies. This facilitates the establishment and promotes the growth of companies on sites in the canton.

How does the canton of Basel-Stadt accompany and support the transformation of industrial sites into modern residential and working quarters?
Through an active and systematic exchange with companies and landowners. At the AWA, we not only know about a company’s confidential, potential development steps, but can also provide the company with the necessary development sites.

What role do investors and developers play for Basel today?
Both play an important role. They invest in underutilized, partially derelict land in order to develop it and generate substantial added value for Basel as a location. However, transformation sites are also in the public eye due to their size. All parties involved must take this responsibility into account.

How does the promotion of start-ups and life sciences contribute to real estate development?
A concrete example: the canton has been operating the Tech Park Basel for 14 years. We offer small-scale laboratory and office space there at attractive rental conditions. Start-ups that outgrow Tech Park Basel then look for larger spaces on commercial terms. We are therefore producing a pipeline of mature, well-financed startups (mostly biotechs) for the benefit of the private, unsubsidized real estate market.

What future trends do you see for Basel up to 2030, particularly with regard to digitalization and new forms of work?
Job quality is much more important today than it used to be. Digitalization could further drive the flexibilization of space rental. Our experience shows that some companies are looking for rental space where, for example, a meeting room can be booked flexibly via an app. Although Basel has a healthy supply of office space, it is still not so easy to find this type of space through real estate agencies.

They will enter a well-deserved retirement in the next few years.
What skills are particularly important for your succession?
Skills are important. But personal qualities are even more important. These include entrepreneurial thinking, enthusiasm, a willingness to learn, perseverance and the joy of working together in a great team to develop the site every day. I have a bit of a problem with the term “retirement” anyway. I love my work as a “public entrepreneur” and would like to remain involved in areas that are important to me personally even after I leave my current position in May 2027.

Editorial team: immoMedia, Image: provided