How do real estate developers determine a price for real estate?

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Hi I am new here and would like to get some advice or opinions on a commercial property I own. My question is “ How do real estate developers come up with an offer they make to people on a piece of real estate?” I have had people stop by my property and ask me if am interested in selling but have never gave me an offer. They seam more like amatures than professionals but it seams like some big company or a developer might stop by soon and I just want to be ready. A CVS bought an entire block about 3 years ago ( block next to me) and my neighbors ( total of 4 that I never met ) just sold to a developer and started building a retail strip. Theirs a sign on their property that say a 7300 sq ft retail strip is being built. I own half an acre and it seams like my property is a bit bigger than theirs. Im In san antonio texas. I would really appreciate any advise. Thank you

Land + development costs +profit=exit price

For land, its really worth what someone will pay for it. Try to find the per sq ft for the recently sold land. taking into account the shape, condition (structures if any), and zoned usage. As a ballpark, just receive offers and decide if you want to sell.

Value of land for development has tons of factors. Generally the land on corners is worth the most and the further you move off the corner for commercial retail the more the rents per sq ft drop and the value. This is for small balance commercial retail which might or might not fit on your land.

You could have an acre but it is a really weird shape than a standard rectangle or square which can make laying out a site plan that works and is profitable for  a developer difficult. Also if your land is in a hole or up high to take the dirt down to sight level for the street can cost a good amount of money. If utilities are too the curb that can be  a benefit. If you have to get easements through other properties they might charge a pretty penny for it.

Often owner see a CVS went in and the seller got some crazy number. The corner pharmacy, gas station, bank can pay a premium. The rest like the corners but want to pay cheaper rent to land it. If a developer is going to pay a premium for land they have to land certain tenants with high rents to make it work. This is why a developer will put option on a piece of land and then seek out a tenant to give a forward commitment on a lease.