Commercial Land

[Steve Olafson]

Hey All,

I am looking into buying a few acres of commercial land.  It is a play in a small town that is about to get a couple hundred million development project that will bring jobs. 

Some activity has taken place but most of the land is still available.  I have an opportunity to buy at a time that is still early.  Values have only gone up on parcels that are in the immediate area of the project.  I have a shot at some of those but I believe that the entire town is going to have a great boom as a result.  There are other projects in this town that will get a direct benefit as a result.

The project is 99.5% ready to go and I will make my offer with an escape clause if the project collapses.

The obvious things to consider are price, utility access costs, and taxes.  I did purchase land in the past but all the development plans were completed already.

My plan is to buy in a location that would lend itself to a bank, chain restaurant, drug store, etc. 

Does anyone have any helpful advice on things to watch out for?  How about lot sizes?  I am currently looking for a minimum of three acres.

[Joel Owens]

Drug stores want the corners. Land sits on 1 acre the smallest and 2 acres the largest generally with most at about 1.5 acres.

Bank and chain restaurants sometimes want the corner but usually off the corner as it's cheaper.

The thing with land is you have to time it just right. You will have dead carrying costs for years waiting to develop.

I am looking at some land plays too but only if I can develop within a year. I do not want to sit 5 to 10 years to do a project at this time.