Let’s say you have an idea for the perfect development. All of your plans are set, and you’re ready to find the peace of land that’ll make your dream a reality. But where do you begin? In an overwhelming world of zoning laws, environmental problems, construction concerns, and laws about land usage, purchasing land for commercial use can seem like a daunting task.
When you consider all the finer details that go into a final deal, due diligence can define success. Without sufficient investigation and research, you may or may not end up with the property you needed—leaving you with a piece of land that you can’t use how you intended.
Luckily, the land development experts at SRC Land can make the process far smoother. As a buyer, you can definitely do your part to ensure the best possible outcome by knowing everything you need to know when purchasing commercial land.
You should know the zoning laws of the land you plan to buy. Zoning laws can determine the ways a specific area of land can be utilized. For example, you may have intentions to build a mixed-use development on your plot of land, but it’s zoned for residential use. In this scenario, your best bet would be to negotiate the purchase contract contingent on the rezoning of the property or getting a variance.
Both options can be tedious and require additional fees, making you want to pass on that piece of land. Zoning impacts about everything in regards to your future business plans. It can control noise levels, business signage, parking regulations, waste management, and much more. So make sure to review all zoning laws before signing a lease, and remember that certain land can be zoned for multiple uses.
Ask About Utilities
Don’t assume that particular utilities will be available at your property. Always ask in advance. If you’re developing on the land, this is a crucial step to cover since hidden costs will creep in.
Based on your intended use of your commercial land, you’ll have to secure the proper utilities to carry out your business. If the city doesn’t offer the services you need, find out if you’ll be able to acquire them, whether it’s access to a septic system, water, electricity, gas, or a telephone.
You’ve been looking and you think you’ve discovered the piece of commercial land you wish to use for development. It’s zoned properly, utilities are available, and it’s easily accessible; however, there might be another obstacle preventing you from developing the property: deed restrictions.
Deed restrictions exist to determine the way title owners can utilize the land. For instance, there could be a restriction on the land that doesn’t allow commercial development despite it being properly zoned for such use.
Restrictions can cover everything from the future use of the property to building height, characteristics of buildings, property maintenance, and other responsibilities associated with the land. Generally, deed restrictions apply to all future title owners.
These restrictions outweigh zoning regulations, so even if you find commercial land that fits your use, a restriction could still keep you from pursuing your planned development.
When settling on a property, remember that location is everything. Having a clear-cut plan for your commercial land will help you figure out which questions to ask that can help you address:
- If there’s room to add parking and space for proper ingress and egress.
- If the location is convenient to your future clientele.
- What the nearby competition is like.
- If the construction company has access to the land.
- If it’s easy to get to major highways and shipping routes.
Topography & Design
It’s especially important for you to evaluate the topography and design of the land you wish to purchase. Consider the following before you select your next commercial lot:
- Environmental qualities (e.g. soil quality, underground pipes, underground storage tanks, etc.)
- Slope of the land
- Nearby streams/water sources
- Shaded or sunny regions
Considering this information can help you make a lot of money if you are going into agriculture or save you a lot of money in the future if a flood or natural disaster were to occur.
At the end of the day, all of these concerns can be addressed so you find commercial land that will help your business carve out future success. At SRC Land, we guide clients through every phase of a land deal so you receive the greatest value, and we’d be happy to help you in your land investment.