What is entitled land?

Question

In commercial real estate, or development terms, what exactly does it mean to have entitled land?  Everyone i've asked around my office says something different.  I'm still pretty new to the industry and have some people asking me to find them some entitled land and I would like to know what i'm looking for ;-)  Thanks.

Tracy D. Garrett-Numa · Answer

Hello, I know this post is 10 years old but do anyone know who I could talk to that works with land owners in getting the entitlements so that a builder would want to by the land?  I have 10 acres for sale but need to get the entitlements for a builder. Any information you may provided will be appreaciated.

Shauna Wood · Answer

Thanks guys!  That makes sense.  Thanks for helping me out!

Ryan Murakami · Answer

Yah Mikes right, I actually just learned this last night at a REIA meeting. One of the sponsors of the meeting is called Castle Arch. They take raw land, do all the entitlement (like forced appreciation) to add value, then sell it. They were at the meeting looking for accredited investors. From what I understand, they've created securities backed by that land.

Anyway, just thought Id add that... thought it was interesting

Jon Holdman · Answer

Yep, I agree with Mike.  Depending on the area, getting these entitlements can be very difficult, and having them makes the land much, much more valuable.

Jon

Account Closed · Answer

Entitled refers to the pre-construction process of obtianing the permitting, getting the land use approved, utility easements approved, etc. These pre-construction requirements are known as "Entitlements". When all that is done the land is "entitled" and you are ready to begin the building process, financing, etc..

John M. · Answer

My guess is a person who has  *rights* to a land. In developmental terms, it may be when the developer has all costs paid for building a property. I might be wrong, so lets have someone else elaborate.