Investing in vacant land for commercial real estate can be lucrative with careful consideration and thorough research. Whether you’re a seasoned investor or a first-time buyer, follow these steps to ensure a wise investment
Advantages of Buying Vacant Land: Emilee Collins, CCIM, highlights the benefits:
- Customization and Flexibility: Tailor sites to specific business needs.
- Increased Revenue Potential: Developments can rapidly increase land value.
- Asset Diversification: “Buy and hold” strategy spreads investment risk.
Buying Vacant Land Checklist:
Research Area:
- Understand growth potential in the location.
- Consider city or town leaders’ plans for the area.
Zoning:
- Determine allowable land use, setbacks, and restrictions.
- Check proximity to interstates and easements.
Utilities:
- Assess availability of water, sewer, electricity, and waste disposal.
- Understand infrastructure costs for areas lacking utilities.
Site Survey:
- Identify topography, drainage, and existing structures.
- Conduct percolation tests for septic system viability.
Site Plan:
- Engineer a comprehensive plan for commercial or residential development.
- Plan includes buildings, parking, stormwater mitigation, and access points.
Approved Plans:
- Investigate previously approved plans for the land.
- Uncover potential opportunities or constraints.
Budget Considerations:
- Account for significant expenses like site planning, sewer installation, and road adjustments.
- Understand impact on potential land use and value.
Legal Considerations:
- Engage a real estate attorney to navigate legal aspects.
- Assess zoning laws, property access, rights of way, encroachments, and outstanding claims.
Bottom Line: Buying vacant land requires diligent research, meticulous planning, and professional guidance. Following this checklist ensures a solid investment meeting your specific needs.
