Good Things to Know When Purchasing Land for Commercial Use
Purchasing land for commercial development can be a more detailed and complicated process than most people realize when they are doing so for the first time. If you are considering purchasing land for commercial development there are some important things you will want to know and ask yourself during the process.
Concerns Regarding Land Use
The main question you will want to answer about any land you may be considering for development is of course, “Is the property best suited for your commercial development?”
To help you answer this question you can ask yourself more questions such as:
- Is the land buildable?
- Is the land large enough to accommodate development ordinances?
- Are boundaries clearly marked and outlined?
- Is there enough road frontage for ingress/egress build?
- Will you own water rights?
- Are there any flood plain, easements, or encroachments?
- Are there environmental issues?
- Is there a possibility of future developments around the land that would affect business and investment?
- Is there easy access to bring in construction equipment?
- Are there any issues with the land that may bring up the construction costs like nearby wetlands or soil issues?
- Are there any issues or special parameters that would require special or specific building design plans?
- Is there room for a parking lot?
- Is it near to other similar types of business that would help attract business to your building?
Of course there will be more costs involved in developing a commercial property than just the purchase price of the land. Some costs you have probably added into the total price of your investment while others you may not have thought about. It is easy to forget some costs as there are many things that can add up quickly. Here is a list of common expenses to add to the overall cost of development.
- Cost of the land
- Engineering Costs
- Municipal fees
- Water/sewer fees
- Cost of setting up utilities
- Septic/well if in a rural area with no city sewage services
- Legal fees
- Land clearing/excavation
- Fees for various permits
- Any road or driveway construction
- Final land grade and finish landscaping
- Possible contaminated soil clean up
- Unforeseen emergency costs
- Extra costs of things not getting done on schedule
- Fire protection
Developing commercial land for the first time can get complicated and overwhelming if you go it alone. It is a great idea to hire a commercial real estate pro knowledgeable in local commercial real estate to help in the process of your purchase. The team at Minot Commercial is here to guide you through any commercial real estate needs. You can contact us at any time.