When evaluating a land parcel for industrial, commercial, or mixed-use development, easements and encroachments are critical factors that can reduce the actual buildable area, impact design flexibility, and affect property value. They represent legal or physical limitations that restrict full utilization of the land.
Below are the key types of easements and encroachments that reduce usable square footage:
1. Utility Easements
- Areas reserved for electricity lines, water mains, gas pipelines, or telecom cables.
- Construction is either prohibited or highly restricted in these zones.
- Easements may cover 5 to 15 meters in width, depending on the utility type and regulation.
- Developers must maintain clear access for repair and maintenance agencies.
2. Access or Right-of-Way Easements
- Grants others (e.g., neighbors, municipalities) the right to cross or use a portion of the land for access.
- Often required when adjacent plots are landlocked or need shared roads.
- Portions of the site under such easements may not be counted toward FAR (Floor Area Ratio) or built-up potential.
3. Drainage or Stormwater Easements
- Reserved for stormwater drains, open channels, culverts, or canals.
- Common along property boundaries or across plots in low-lying areas.
- Construction is restricted to ensure proper flow and maintenance access.
4. Encroachments by Adjoining Property
- When neighbors have illegally extended structures, fencing, or activities onto the land.
- Reduces the actual usable area unless resolved legally or through compensation.
- May delay project timelines and prevent full fencing or development.
5. Government or Public Land Reservations
- Part of the land may be marked for future road widening, green belt, or public utilities as per the Master Plan or zoning maps.
- These reservations must be surrendered to the authority without compensation in many cases.
- Usable land reduces once these setbacks are excluded from the developable area.
