Before resale or vertical buildout, REITs that hold industrial land typically fund entitlements and land improvements to enhance the asset’s marketability, increase its value, and reduce barriers for future development. These pre-development investments help reposition the land from raw or underutilized status to a fully entitled, development-ready asset. Below are five key categories of entitlements and improvements that REITs commonly fund:
1. Zoning and Land Use Entitlements
- Secure industrial or light manufacturing zoning if the current designation is not development-ready.
- Obtain conditional use permits, variances, or overlays aligned with anticipated tenant types (e.g., logistics, flex space, cold storage).
- Approve site plans that define building footprints, ingress/egress, setbacks, and loading access.
- Ensure alignment with local master plans, economic zones, or sustainability overlays.
- Reduces uncertainty for future buyers, developers, or tenants.
2. Environmental and Regulatory Approvals
- Conduct Phase I/II Environmental Site Assessments (ESA) to confirm the site is free of contamination or disclose remediation needs.
- Secure wetland delineations, stormwater discharge permits, and environmental impact study approvals.
- Complete traffic, noise, and utility impact assessments as required by planning departments.
- Satisfy any state or federal requirements (e.g., NEPA, CEQA) for industrial land use.
- These actions de-risk the site and accelerate construction readiness.
3. Infrastructure and Utility Extensions
- Install or extend water, sewer, stormwater, gas, and electrical infrastructure to the site boundary or within subdivided parcels.
- Construct offsite improvements such as roadway turn lanes, traffic signals, or utility tie-ins as required for entitlements.
- May include grading, drainage systems, and erosion control measures.
- Helps ensure the land qualifies as “shovel-ready” or pad-ready for prospective buyers or developers.
- Adds tangible value by reducing time and cost to build.
4. Subdivision and Parcelization Work
- Create recorded plats and legal parcel maps to divide large holdings into sellable or leasable lots.
- Define access easements, common area agreements, and maintenance responsibilities.
- Align lot dimensions and roadways with targeted building types or tenant profiles.
- Improves flexibility for phased development or multi-user site planning.
- Can support both resale and retained ownership strategies.
5. Site Branding and Marketing Enhancements
- Develop entry signage, landscaped buffers, and branding features to position the site as a premium industrial destination.
- Create design guidelines or architectural covenants to maintain aesthetic standards and support association governance.
- Conduct site visualization, drone mapping, and digital marketing packages for brokers or JV partners.
- Investment in appearance and identity improves buyer confidence and market visibility.
- Useful when positioning the site within a broader industrial park or eco-industrial zone.
