What To Look At Before Buying Land for Commercial Use
Purchasing commercial land for sale instead of leasing has both advantages and disadvantages. These considerations can help you make the right decision and help you evaluate a commercial property.
Location is the most important consideration for any business purchasing land. How will the location work for customers, deliveries, and employees? Do you need the location to be close to railroads, highways, or a supplier’s warehouse?
Market Value of the Property
Whether you intend to sell the property in the future or not, you will want to make sure that the property is predicted to increase in the future. One way to do this is to get a market analysis done. A market analysis will help you to know the market value of the property, prior to making a purchase decision.
Condition of the Property
What is the current condition of the property? You will want to consider any existing structures and any potential environmental issues related to the land itself. Did previous owners inappropriately dispose of chemicals, or do any buildings contain asbestos or lead paint? All of these types of issues could require you to pay for clean-up or remediation in the future, so make sure you are aware of all of these types of items prior to the purchase.
Zoning laws create restrictions on the legal uses of the land you are purchasing. How is the land currently zoned? Will it be possible to get the land rezoned if it’s not currently zoned appropriately for your needs? Get familiar with the local zoning laws and the zoning officials to make sure you are getting property that is going to permit you to use it for your intended purposes.
Grading Work Required
Do you know about the sloping or uneven ground on the property. How will this impact the costs of things like building on the land and paving a parking area? Make sure that you factor in the cost of grading work that will be needed so you don’t end up with an inexpensive property that becomes expensive shortly after the purchase.
Adjacent properties can affect the value of your property. What types of neighbors will you have? If these neighbors are businesses, what industry are they in? Are there issues with the noise of their business or odors from the work they do? The more you know about the neighbors – and any potential future neighbors based on the zoning – the better off you’ll be.
Employee and Customer Parking
Not having enough parking will cause headaches for everyone, so make sure you properly plan out your parking needs and expenses. Again, this will help you avoid unplanned expenses in the future.
If your property isn’t compliant with the Americans with Disabilities Act, you could be setting yourself up for a lawsuit. Pay close attention to ADA requirements throughout the entire process. You may also want to consider hiring an ADA consultant to supervise any design and construction you do on the property.
Insurance expenses can vary between properties. These insurance rate variations are based on things like the proximity to water, the land elevation, distance from a fire hydrant, and other site-specific factors.
What will happen if your business grows? How much growth can happen on the property before you will have to move to another location? Also, if your business doesn’t grow, is your extra space set up to allow you to rent some of it out. All of these considerations will help you make sure that your property is flexible enough to accommodate the unknowns in the future of your business.