Highest and Best Use?

3 Replies

I own a 1 acre property next to a fairly newly built Tractor Supply.

Had it up for sale for a 2 years.

Had a close sale to Dunkin Donuts but they chose to build around the corner on a larger lot.  Same with a landscape company.

I am thinking of possibly have a building put up to rent out, perhaps office or retail.

Any suggestions would be greatly appreciated.

If your lot is nearly a recently constructed Tractor Supply and a new DD going up you want to be in that are as a land owner for sure.  That is a sign the area is building up and if you lot is in very close proximity you won't want to do residential for something small. Go office/retail OR large multifamily development if possible. 

@Michael Plante FULL DISCLOSURE: no experience yet in commercial property (except MF residential) ...and only done rehabs, no building/development.

Isn't commercial really just a waiting game anyway? The longer toy have to wait, the higher you're asking price should be, right? If so, would you be better off doing a build to suit with a long term tenant? With only an acre for parking and building, your probably either limited to a single tenant or low volume garden offices (maybe a small retail strip center, but the sizes would probably dictate shorter leases and higher turnover). These are just my thoughts, hoping to give you note perspective. I'm interested to know what you decide and the logic you use for that decision.