Land & Commercial Real Estate
Different properties require a different approach.
Land and commercial real estate transactions can be considerably different from buying or selling a home.
The value of a property may depend not only on what exists today, but on how the property can be used, developed, occupied, or repositioned in the future.
AED Realty helps clients approach these opportunities with an emphasis on research, due diligence, market information, and negotiation.
Land
A vacant parcel isn't simply a property without a building.
Its potential can depend on numerous factors, including:
Location and access
Parcel size and configuration
Zoning
Permitted uses
Utilities
Water and sewer availability
Topography
Wetlands and floodplain considerations
Easements
Road access
Surrounding development
Municipal plans and requirements
Two parcels of similar size located near one another can have very different potential—and very different values.
Commercial Property
Commercial real estate can include a wide range of property types, such as:
Retail
Office
Industrial
Warehouse
Mixed-use properties
Owner-user properties
Income-producing commercial properties
Development and redevelopment opportunities
Each requires a different approach to valuation and due diligence.
Start With Intended Use
For buyers, one of the first questions we want to answer is:
What do you need the property to do?
A property can look ideal and still be unsuitable if zoning, access, utilities, building configuration, parking, or municipal requirements don't support the intended use.
Before becoming focused on a particular property, we'll work to identify the characteristics that matter to your intended use.
Zoning and Land Use
Zoning can have an enormous impact on the usefulness and value of land and commercial property.
We'll research available zoning and land-use information as part of evaluating an opportunity, but buyers should independently verify that their intended use is permitted with the appropriate municipality or governmental authority.
Depending on the project, professional assistance from an attorney, engineer, architect, surveyor, environmental consultant, or other specialist may also be appropriate.
Utilities and Infrastructure
For vacant land in particular, the availability of utilities can significantly affect development feasibility and cost.
Questions may include:
Is municipal water available?
Is sanitary sewer available?
Where are the nearest connections?
Is a well or septic system possible?
Is sufficient electrical service available?
Is natural gas available?
Who is responsible for extending utilities?
Are there unusual infrastructure requirements?
A low land price can become much less attractive if significant infrastructure investment is required to make the property usable.
Access Matters
Having road frontage doesn't necessarily mean a property has the access needed for its intended use.
Depending on the property, we'll consider issues such as:
Existing entrances
Potential curb cuts
Highway or roadway access
Easements
Shared access
Truck access
Traffic patterns
Parking
Loading requirements
Appropriate governmental authorities and other professionals should verify access rights and requirements during due diligence.
Evaluating Commercial Property
Commercial property may be valued differently depending on how it is used.
An owner-user property might be evaluated based largely on comparable sales, replacement alternatives, location, and suitability.
An income-producing property may require additional consideration of:
Income + Expenses + Occupancy + Lease Terms + Market Rents + Capitalization Rate
Development property may require an entirely different analysis.
That's why applying a residential-style price-per-square-foot comparison alone may not tell the full story.
Due Diligence
Due diligence is particularly important with land and commercial transactions.
Depending on the property and intended use, investigation may include:
Survey
Title
Zoning
Environmental conditions
Soil conditions
Wetlands
Floodplain
Utilities
Access
Building condition
Code compliance
Existing leases
Operating expenses
Municipal approvals
Development feasibility
Not every property requires every investigation.
We'll help identify questions that should be explored while coordinating with the attorneys, engineers, inspectors, lenders, municipalities, and other professionals needed to answer them.
Buying Land or Commercial Property
Our role begins with understanding why you're buying.
From there, we can help:
Define Criteria → Identify Properties → Research Opportunities → Analyze Market Information → Structure an Offer → Coordinate Due Diligence → Negotiate → Move Toward Closing
That process can be straightforward for some properties and considerably more involved for others.
Selling Land or Commercial Property
Selling these properties also requires understanding who the likely buyer is and what they're actually buying.
Marketing vacant land to a developer is different from marketing a warehouse to an owner-user. An income-producing property requires different information than a vacant commercial building.
Before going to market, we'll work to understand the property's characteristics, potential uses, available documentation, likely buyer pool, and relevant comparable properties.
From there, we can develop an appropriate pricing and marketing strategy.
Understand the Opportunity Before Making the Decision
Land and commercial real estate often involve questions that can't be answered by looking at the listing alone.
AED Realty's role is to help you ask the right questions, gather the right information, understand the market, and coordinate the process so you can make an informed real estate decision.
Have a Property or Opportunity in Mind?
Whether you're considering a purchase, sale, development opportunity, or simply trying to understand what a property may be worth, let's start with the objective.
This information is provided for general educational purposes and is not intended as legal, tax, financial, engineering, environmental, zoning, or investment advice. Property conditions, governmental requirements, and individual circumstances vary. Buyers and sellers should independently verify information and consult the appropriate professionals and governmental authorities regarding a specific property or intended use.