Investment

During long-term holding of undeveloped commercial land, several physical and legal risks can arise that directly affect the land’s value, usability, and development readiness. Three significant risks—land degradation, encroachment, and illegal dumping—can lead to increased costs, legal exposure, and diminished return on investment if not properly managed. Understanding and mitigating these risks is...

The ideal holding period for undeveloped commercial land depends on a combination of market cycle timing, capital gain objectives, and external growth drivers such as infrastructure or zoning changes. Balancing these factors ensures that investors can maximize returns while managing risk and minimizing unnecessary carrying costs. 1. Market Cycle Considerations Real estate markets typically operate...

Master plans and corridor studies are strategic planning tools developed by local or regional governments to guide long-term land use, infrastructure, and economic development. These documents are essential for identifying areas targeted for future commercial growth, especially when supported by planned zoning changes, infrastructure investment, or incentives. Understanding their recommendations allows...

Political and policy changes are powerful catalysts that can directly influence rezoning decisions and increase land demand. These changes often align with broader governmental goals such as economic development, housing affordability, transit access, environmental sustainability, or urban revitalization. Understanding these triggers helps landowners and investors position their parcels strategically and...

The physical characteristics of a land parcel are fundamental in determining its suitability for future commercial development. Key attributes such as size, shape, road frontage, access, and topography must align with the intended commercial use—whether it's retail, office, hospitality, or industrial. Evaluating these factors early ensures that a site can support required building footprints, parking,...

Carrying costs are the recurring expenses incurred while holding undeveloped or underdeveloped commercial land. These costs directly impact cash flow during the holding period and must be accounted for to determine the financial feasibility of land banking or deferred development strategies. A thorough understanding of these costs enables investors to forecast net returns and manage risk during periods...

Evaluating the financial viability of land banking—the strategy of holding undeveloped land for future resale or development—relies heavily on understanding average land appreciation rates in the target region. These rates indicate whether the market supports long-term value growth sufficient to offset holding costs, taxes, and inflation, and to eventually yield a profitable return on...

Evaluating the financial viability of land banking—the strategy of holding undeveloped land for future resale or development—relies heavily on understanding average land appreciation rates in the target region. These rates indicate whether the market supports long-term value growth sufficient to offset holding costs, taxes, and inflation, and to eventually yield a profitable return on...

The current zoning designation of a land parcel plays a critical role in shaping its future commercial development potential, either by limiting what can be built or by offering opportunities for higher-value, flexible, or mixed-use development. Understanding these zoning parameters helps investors and developers assess feasibility, entitlements, risk, and long-term return. 1. Permitted Uses and Use...

To accurately determine what infrastructure or transit improvements are planned near your target land parcel, you would typically need to consult: 1. Municipal Planning and Zoning Departments These local agencies maintain: Capital Improvement Plans (CIPs): multi-year road, utility, and public facility upgrades. Transportation Master Plans: documents outlining upcoming transit projects,...