Cryptic crossword clue
Observation of said location 6

The most common and most likely answer to this crossword clue is the 6 letter word SITING

I've seen this crossword clue in Financial Times
S
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T
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Buddy explains!

The straight part
We know that "location" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case location = siting.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does SITING mean?

SITING verb
  1. To situate or place a building.
SITING noun
  1. The act of finding a site for something.

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