What utilities are expected in commercial land?

Hello LandBank

Utilities expected in commercial land are essential services and infrastructure that support business operations, development readiness, and regulatory compliance. The availability of these utilities directly influences a property’s market value, development cost, and tenant appeal.

Here’s a detailed breakdown of the core utilities and related systems typically expected on commercial land:

Water Supply

  • Potable (drinking) water is a basic requirement for all commercial properties
  • Connection to a municipal water system is preferred, but in rural or undeveloped areas, wells may be acceptable (subject to local health codes)
  • Sufficient water pressure and flow are especially important for:
    • Restaurants and food processing
    • Medical and industrial uses
    • Fire suppression systems (sprinklers, hydrants)

Sanitary Sewer System

  • Connection to a public sanitary sewer line is standard and often required by local health and building departments
  • In the absence of sewer access, an on-site septic system may be allowed, but only under strict conditions and often with limits on development density
  • Sewer capacity impacts permitting and may determine:
    • Maximum building size
    • Number of restrooms or fixtures
    • Types of commercial use allowed (e.g., food vs. warehouse)

Stormwater Drainage

  • Proper stormwater infrastructure is crucial for managing runoff, complying with environmental regulations, and preventing flooding
  • Systems include:
    • Storm drains and culverts
    • Retention or detention basins
    • Swales or pervious surfaces
  • Required for all commercial developments, especially those with large paved areas

Electrical Service

  • Electricity is required for lighting, HVAC, equipment, and tenant operations
  • Most commercial properties need three-phase power, which supports higher loads for:
    • Manufacturing and machinery
    • Office and retail buildings with elevators or HVAC systems
  • Availability and capacity from the local utility provider should be verified during due diligence

Natural Gas

  • Often needed for heating, cooking, or industrial processes
  • Expected in:
    • Restaurants
    • Laboratories
    • Light manufacturing
  • Not all locations have gas lines nearby; availability may affect project feasibility

Telecommunications and Internet

  • High-speed internet is essential for nearly all commercial tenants
  • Preferred options include:
    • Fiber-optic connectivity for offices, medical, and tech tenants
    • Cable or DSL in less urban areas
  • Some sites may also require VoIP infrastructure, dedicated data lines, or backup connectivity

Waste Collection and Management

  • Sites must have access to trash and recycling collection services
  • Larger developments may require:
    • Dumpster pads and screening enclosures
    • Waste management plans for hazardous materials or special waste streams

Fire Protection Systems

  • Access to nearby fire hydrants or on-site water storage tanks is expected for compliance with fire codes
  • Fire safety infrastructure may also include:
    • Sprinkler systems (required in most commercial structures)
    • Fire lanes and emergency access points
  • Required spacing and water pressure standards are set by local fire marshals

Utility Easements and Rights-of-Way

  • Public or private utility easements often exist on or near commercial land
  • These areas must be accessible for maintenance and cannot be built upon
  • Proper documentation and mapping of easements are critical for site planning

Optional or Emerging Utility Features

  • Electric vehicle (EV) charging stations, especially in office, retail, and hospitality uses
  • Backup generators or solar energy systems, depending on tenant needs or sustainability goals
  • Greywater reuse or rainwater harvesting in environmentally regulated areas

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