Updated almost 2 years ago on . Most recent reply
Land along Railroad tracks
Hello, I am new to this forum and site. I really appreciate any insights on land investment that is along the rail road track. We are not going to build any structure on it any time soon. But, in future if we want to develop any residential or commercial buildings on this land, would this rail road track going to be a deal breaker in terms of attracting potential developers or buyers or investors?
Most Popular Reply
Maybe, or maybe not.
To me, the first and most important factor is the size and shape of the parcel in question. If it is elongated and stretches along the right-of-way of the railroad then I would be less inclined to purchase it. If it is a bigger lot with some acreage between the railroad and the build site (or sites) then I may be more interested.
After establishing this, the next most important aspect of this land would be its zoning and restrictive covenants. Generally, I would think that commercial real estate (especially B and C class industrial/warehousing) would be less averse to the close train proximity then residential. But if the area is popular enough, even residential may be a good use for the site. I would then want to know if there are any access easements to the rail line or restrictive covenants on the property which would negatively impact my ability to develop the land.
Lastly, my concern would be environmental. Has this site been a dumping ground for industrial wastes over the many decades the railroad has been in use? Were there any incidents in the vicinity of the track? Etc.