Buying commercial land is complicated.
That’s the reason that you need to know about zoning, permits, regulations, title searches, utilities, and so on.
The bitter truth is that it’s not easy but it can be done if you follow a few steps to get started…
To do this, here are the 15 ways to get started with commercial land…
- Find a good location
- Who will be your tenant?
- Know the property’s zoning
- Look at services
- Check how much raw land is needed
- Look at the site plans
- Consider the topography
- Study the maps
- Check with local authorities on permits and regulations
- Do a title search
- See if documentation is ready for transfer of ownership
- Find out where utilities are laid out and if there are easements for them
- Research nearby properties for sale
- Drive around to see what is happening in the area
- Do more research and homework
Find a good location for your commercial land
A good location is a key to a successful business.
It’s what makes you different from your competitors and can attract customers in droves.
A bad location, on the other hand, will keep customers away from you.
However, it won’t matter how great your product or service is if no one knows about it.
Who will be your tenants?
Before you can lease the land, you’ll need to find out if it’s zoned for commercial use.
This can help ensure that there are no restrictions on the type of tenant who will be allowed.
For example, many communities have zoning laws that prohibit certain businesses from operating within their borders such as movie theaters and bars.
So it’s important to check with local authorities before proceeding with a lease agreement.
If there are no restrictions in place at all and your property is zoned for commercial purposes( and by “commercial” we mean something other than residential or agricultural).
Then there should be no problem leasing it out as long as your tenants meet certain requirements such as being licensed by the state where they operate their business or having appropriate insurance coverage in place.
Before taking over operations at their new location.
Know the property’s zoning
Zoning is the way that a city or town divides land into different uses.
It can determine whether you can build on a piece of land or not, which business can operate there, and for how long.
Zoning also determines what kind of business will be allowed to operate on that particular piece of property.
If it’s commercial, then no residential units are allowed.
The best way to learn about zoning is through education at your local planning department but if you are short on time(or have other priorities), here are some basic tips:
- Know what type of use each zone allows before buying any commercial property.
If you are looking for an investment property with potential income streams beyond rent payments from tenants.
Look into whether the current zoning allows mixed-use developments like apartments above shops or offices above warehouses.
Something similar might work well in your area.
Look at the services
- Check the location of the services
- Check if there is enough space for them, and if so, how much?
- Do you have any restrictions on what type of business can operate in that area?
For example, might a restaurant need a special permit from your municipality to operate within certain parameters(such as noise limits or hours of operation)?
If so, make sure that these rules are clearly outlined beforehand.
If you are going to operate your commercial land lease agreement, it’s important to get everything right before signing anything.
After all, this is where your money will be spent.
Check how much raw land is needed
Before you can figure out what commercial land is going to cost, you’ll need to find out how much raw land is needed for your building.
You can do this by checking with the city or state where the property is located and seeing what zoning laws apply.
Once you have an idea of how much raw land is required for parking, landscaping, and storage(if any).
It’s time to start looking at different types of commercial properties like:
These are just three examples of common types of buildings that will require different amounts of space depending on their size.
Look at the site plans
One of the best ways to understand the property is by looking at its site plans.
Site plans show you what buildings and other structures will be on your land, as well as how they will relate to each other.
They also give you an idea of how large the parcel is, so you can determine if it’s suitable for commercial development.
You should look for site plans in person or online from local authorities.
The good news is that some companies may provide them for free if they are interested in selling their land.
Consider the topography
You must assess the topography of your property before you can decide on what to do with it.
If a building site has steep slopes, it will be more expensive than one that has flat land.
This is because there are many factors involved in determining how much money you can make from a particular piece of property, including:
- The quality and size of your building materials
- The difficulty in transporting materials over long distances without incurring any losses or damage during transport
- Time required for construction work if using manual labor instead of machinery
Study the maps
Before you begin your search for commercial land, it’s important to study maps.
Maps can be used to determine the location of land, topography, and zoning.
Because some companies may require you to have an understanding of the environmental regulations before they sell or lease their properties.
Check with local authorities on permits and regulations
- Look up zoning and building codes
- Be sure to check environmental issues, like water pollution or pollution from the land itself
Do a title search
A title search is a legal document that shows who owns a property.
On the other hand, a title search will tell you if there are any liens on the property(a lien is when someone else has placed a claim on your property), easement(right-of-way rights granted to another party), and more.
It also includes information about unregistered mortgages and other encumbrances on your land, which may prevent you from receiving tax breaks under certain circumstances.
See if documentation is ready for transfer of ownership
You may want to start by checking the title of your property.
A title search will tell you if there are any liens or encumbrances on the land.
If it does have a lien, this can be negotiated with the lender and removed before transferring ownership.
If there is no current owner and you want to take over as owner for yourself.
This way, you need to find out what documents are needed in order for them(the previous owner) to transfer ownership to (you) without having any problems with it later down the line when it comes to time for selling or leasing out their business/property.
Find out where utilities are laid out and if there are easements for them
Before you can start a commercial development.
It’s important to make sure that the commercial land is suitable for development.
It can be done by obtaining a survey of the area and checking with utility companies if they have easements in place.
What is Easement?
In a simpler version,
Easements are legal agreements that allow someone to use another person’s property without paying them any rent or allowing them access.
They can be used for public utilities such as water and sewerage or private ones like electricity supply and telephone lines.
Easements usually come into effect at the time when your business commences operations but can also be created or extinguished by agreement between parties at any time thereafter.
Research nearby properties for sale
- Research the local market
- See what other properties are selling for and how they compare to yours
- Find out about the competition like how many sales have been made in this neighborhood in recent years.
- How many homes were listed at that price point before you bought yours?
- What was their asking prices and did they sell quickly or linger on the market for months or even years before being sold?
- Check out any history of structural problems – this will help determine whether it’s worth maintaining or not.
If there’s nothing significant going on with your house, then great.
You can move forward with confidence knowing that this property is safe from disasters like fire hazards and structural failures(although a little maintenance goes a long way).
Drive around to see what is happening in the area
The best way to get started is by driving around and taking note of what’s happening in the area.
You’ll be able to see whether there are any developments coming up, such as new roads(infrastructures) being built or schools being built.
If you want to see what other businesses are doing in your area, drive past them and take note of their signs(if they have any).
Do more research and homework
Buying commercial land is complicated, therefore you will need a lot of property research.
Before you start looking at properties, it is important to understand the market.
The first step in this process is identifying what kind of property you are interested in buying and why.
This will help narrow down your search for potential properties that fit your needs.
If there are any specific requirements or expectations for a particular type of property(for example, maximum size).
These should also be considered when evaluating whether or not a given site fits within these restrictions as well as meeting other criteria such as location and proximity to amenities such as schools and shopping centers.
This could potentially influence an individual’s decision on where they choose to settle down once they purchase their new home/business venture location thereon.
If you are looking to dip your toes in the commercial property game.
Start by finding out what is available.
Then, do some research into the zoning of the area and whether or not there are any restrictions on how many people can live there.
Secondly, look at plans for building your new business or store on top of existing properties or even down into empty spaces within them.
This will help ensure that whatever structure you end up with fits within zoning regulations without breaking any laws.