Handed down a golden opportunity

[Manish A.]

Hello!

I'm new to this forum!  I'm an ER physician with no real estate experience, but I have always wanted to get in.  Now might be the time...

My father owns 2 adjacent lots (combined 1.3 acres) in MD since the 1970s.  There's one leased residental home on each lot, however the zoning on both were recently changed to CSC.  He asked me if I wanted to do something with the space, the project's mine!  

I've met with a couple architects.  Rough estimates have us at 16K sq ft buildable space for single story, and 20K for 2 stories.

Looking at the surrounding area, to my inexperienced eye, the project seems like a no brainer.  This is a main road with HIGH traffic.  There are tons of stores (starbucks, 711, Mcdonalds, rite aid, Lowes) etc with a 1/2 mile radius.

My main question is - how do I figure out the best use of the space?  I've talked to random real estate agents who know the area and have taken their opinions. I think it will come down to retail rental (small strip vs. one big store) vs medial building.

Is common sense, googlemaps, and knowledge gained from speaking to the agents enough to decide on the best use?  Or do you suggest a formal market study / demographics / traffic count?  If so can one point me in the right direction?  Anything else I should be doing at this point?

I would also be interested in a consultant for hire that can answer questions / provide insight thru this process.

Thanks!

Manish

[Joel Owens]

Appraisers will want a ton of cash. An appraisal isn't bad just know likely you will spend thousands for this report.

A local commercial land broker with a track record would be good to run things by. You mentioned you talked to agents but not what kind.

In commercial this is very important WHO you are talking to. Those agents might not have the credentials to give you the most credible information.

Is the goal to build this out and hold for a few years and sell?? OR Is it to hold long term for  generation for the family.

You said you have main road frontage but is it a corner?? How far away is new development from you?? You said Starbucks etc. is a half mile away. That can be a lifetime in commercial for valuation purposes and use. You could have the old side of town and then 1/2 mile away all the growth is going the other direction.

You need to look at the current and future land use map for your area. Then look at what current zoning is and then what the county or city wants it to go to for the future. Then define the highest and best use for the land with single or multi tenant.

Work from the top submitting your site to large corporations for a fit as they tend to pay more than local mom and pop businesses and give more rents for great locations.