Empty Commercial Land/Lots - If You Buy One, Then What?
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[{"id": "fc3sg5q", "text": "If you were buying the site, you would be probably be developing it with a plan right away. You might consider leasing it to a business that is interested in leasing and not buying, in which case they might build on it with a long term lease in place. Perhaps finding multiple tenants if the site is larger, or maybe you build to the current highest and best use to attract tenants. Maybe you hold the land to wait for a potential future opportunity.\n\nThe reason that sites are vacant is likely that the owner was waiting to develop. They are waiting for a tenant that would build, or maybe by delaying the highest and best use could change (the value would increase, ie holding out for a better future opportunity).", "replies": [{"id": "fc3so42", "text": "The current owner might not have the capital or knowledge to develop the site, or maybe the real opportunity is a few years away and they don't want to wait. Lots of risk involved with this, I hope my previous comment helps.", "replies": [{"id": "fc3szes", "text": "Or maybe never. There are plenty of poorly located commercial sites that are unsold and undeveloped because there is no demand for commercial space at that location.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fc3ulcj", "text": "Check the zoning. Is the land/lot already zoned for a particular purpose? \n\nIs horizontal development complete?", "replies": [], "depth": 1}, {"id": "fc40buf", "text": "I am kind of rephrasing u/otisreddingsst. For a residential lot, the purpose is clear. As long as you see demands (recent house sales), you could build. However, for commercial properties, the demands are very sparse. If you see a need for a grocery store in a small town, there maybe nobody in a good position to open one in next 5 years, therefore, if you build one, you will go bankrupt (in fact, no one will lend you money to build it.). \n\nIn addition to demand problems, regulations / local politics could also derail your project. \n\nSo commercial land owners probably have a very deep pockets and they could sit tight and wait for a long time for a good opportunity.", "replies": [], "depth": 1}, {"id": "fc41b0c", "text": "I've looked at countless numbers of these in my career. They are usually overpriced and undersized infill lots and/or they need 12-18months worth of zoning work. The brokers try to sell the \"redevelopment\" angle to justify the price. They are normally just land bank plays which means you need to be buying at pennies on the dollar.", "replies": [], "depth": 1}, {"id": "fc41lpb", "text": "what do you mean how do you get a developer?\n\nif you're buying it you'd be the one developing it. \n\nwhen I drive around and see an empty lot that's there for years there's always a really good reason its empty.  there's enough opportunists out there that can spot a good deal and if something looks good to develop and is good $ then its taken\n\n\ndon't buy an empty lot unless you know what the fuck you're doing    and you my friend don't :)", "replies": [], "depth": 1}, {"id": "fc6vad5", "text": "To do well dealing with vacant land, you need to become very familiar with the zoning code and comprehensive plan in the area you are targeting (to do that you need to know whether the area is in a city or unincorporated county) as well as other issues affecting development (are there issues with water and sewer availability, the stormwater drainage system or capacity of the road network, is the area in a flood zone?).  \n\nIn my area of Florida, we are fortunate that zoning and comp plan maps, zoning codes, ordinances etc are readily available online as well as online GIS systems with maps of the water and sewer systems, flood zones and wetlands.  In Chrome, I have bookmarks of the local jurisdictions' planning websites and learned to use the local planning departments' online GIS systems (most are pretty easy to use, they're all based on ESRI software).\n\nWith regard to some of the other comments to this post, there are areas where commercial land is in high demand and sells quickly. There are also instances where land is being marketed incorrectly, for a use in low demand when a more profitable use is allowed under the current zoning or is compatible with the comp plan and can be approved with a relatively brief, inexpensive process.  The commenters are correct though in that lots of vacant land is overpriced and brokers are promoting uses that require very expensive rezonings or are basically impossible to get approved.", "replies": [], "depth": 1}]