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[{"id": "hakb6q7", "text": "This is completely market dependent but... once simple way to do it is the calculate what is considered excess land and calculate a value for that. If you can figure out the average site coverage ratio then you can determine what is considered \"excess\".\n\nIn my market (smaller city, industrial) your example would be considered a rounding area, but if you're in a high priced/land constrained market it could be considerable.", "replies": [], "depth": 1}, {"id": "hakb8xq", "text": "depends if this is in downtown LA or suburbs of Houston", "replies": [], "depth": 1}, {"id": "hakbczp", "text": "Land to building ratio adjustments.  However, depending on property type that extra land might not be worth anything.  Industrial? outdoor storage potential and the adjustment might be greater.  Retail with adequate parking, and not enough room for expansion in future? Probably no adjustment.", "replies": [], "depth": 1}, {"id": "hakg9gv", "text": "In Northern CA coast urban we often use 200K/ac for comparing acreage variance. That is roughly $4.6/sf x3000sf =13.8K.  Near downtown it would be 2X. Lenders never challenged that type of adjustment.", "replies": [], "depth": 1}, {"id": "hakh2ph", "text": "Too many factors to give you an answer. An appraiser in your area would be able to answer that question for you.", "replies": [], "depth": 1}, {"id": "hakh7s1", "text": "Get land value &gt; get comps and see what their FAR is &gt; compare to subject FAR &gt; get excess land through this method &gt; get value of excess land. Adjustments and weights change depending on what the property is, what zoning is, etc. Excess land for a contractor's yard may be of much higher value than excess land for an office, unless there's potential to rebuild.", "replies": [{"id": "harv6va", "text": "Although this is good for appraising. If you brought a property out to market that was on one parcel and blended two pricing metrics (assigned a $/SF for the building) then did the same for the land, and added the two values together, you\u2019d look like an absolute clown. \n\nTypically it is market to just skew your one pricing metric if there is upside in the property (low rents that have near term lift potential, extra developable land, new improvements\u2026 etc)", "replies": [{"id": "hat7ew1", "text": "You wouldn't combine them, you'd just use the value of excess land to help determine what you think the price should be based on the $/sqft of the building. It's going to be a range and if the value of excess land is very important, then you may list to the higher end of the range than you otherwise would.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "harunb4", "text": "This also heavily depends upon what will yield the highest value for this property, is it simply leasing the building then assigning a cap rate? Is it owner user and pricing based off $/SF of building, or is it scraping the current structure and developing the lot which then would make your pricing $/SF of land. \n\nAlso, the bigger lot, is it one parcel still? Are there any environmental issues? Is there room to develop a second building? If the land doesn\u2019t add to the higher and better use of the property, or isn\u2019t developable, it really won\u2019t change the pricing. \n\nLet\u2019s say this is the scenario: Both properties are 1 parcel, both properties have the building in the middle of the parcel, both properties real value is in an owner user concept NOT redevelopment. Then I would make the pricing metric $/SF based on the building. \n\nMy 6 comps I pulled all sold based off the $/SF of building and those amounts were: $10/Sf, $12/SF, $15/SF, $11/SF, $14/SF, and $13/SF (Average of $12.50) \n\nI\u2019d push pricing on the larger lot property to $14/SF and put the other around my average of $12/SF. \n\nThere\u2019s so many factors that go into this that the lot size way be irrelevant. You need to first determine where the real value in the property is and if the extra land actually provides the potential buyer with any upside.", "replies": [], "depth": 1}]