What makes a property good for development?

[Thomas Weidner]

Hoping to hear what some of the developers have to say. What qualifies a property to make a good development? I understand the basics such as good schools and low crime make good areas. But t what other areas do you look at or for to make it a good area?

[Dustin Allen]

@Thomas Weidner

That is definitely a hyper local question. While some of the things you mentioned are indications of rules of thumb, each area has its own attractions and specific challenges. 

Where I am, regulations and lot sizes change greatly within the span of a mile or two. Within a couple blocks, you can go from the lowest priced lots to $500k+ vacant lots. 

I believe it’s more important to really get to know the area you’re working in and see where progress and the local demand is heading. Are there favorable regulations in one area or another that will let you do something unique? Is there access to local attractions such as water access, hiking/biking trails? 

The more you know your own market, the easier it will be to spot opportunity.

[Bobby S.]

@Thomas Weidner surrounding development is a key factor. If there are other project sites near your prospective property that’s a good indication that growth is happening.

You want to be near cities and areas going through expansions.

You might also want to check with your local municipalities to see if there are density bonuses tied to certain projects that might be close to public transit or for affordable housing incentives.

[Greg Dickerson]

Originally posted by @Thomas Weidner:

Hoping to hear what some of the developers have to say. What qualifies a property to make a good development? I understand the basics such as good schools and low crime make good areas. But t what other areas do you look at or for to make it a good area?

First it's all about demand and highest and best use. Next is financial feasibility.

Once you determine there is demand and the numbers make sense you look at the land itself in terms of shape, topography, proximity to utilities, access to amenities and the local environment for development including the process and timeline with the city and county and public appetite and desire and or opposition. This is one thing is often a make or break.

[Thomas Weidner]

@Thomas Weidner @Dustin Allen @Bobby Shokri and @Greg Dickerson thanks for the replies. I recently contacted a realtor to ask about an individual lot to possibly build a spec. In conversation they mentioned a 20 acre property that had already had the plat done for a sub division. The area is a good area and has 3 other developments in close proximity. There is good growth going on in the area and the schools are great, one of the top 100 in the state. The price I thought was reasonable as well. From the outside looks like a good deal. Just wanted to get some insight before spreading the word.