What You Don’t Know About Purchasing Land for Development

Purchasing land in the Raleigh-Durham area for commercial development may be a more intricate process than you think. Before you decide to buy the land, keep the following costs and concerns in mind. If you have any questions about purchasing land, contact the experts at Craft Commercial for the answers you need.

Concerns Regarding the Land Use

Is the property you are considering best suited for your commercial development? That is the main question you must answer when evaluating the land. In order to determine whether it is ideal for development, ask yourself the following questions about the property.

flat grassy area with treesLand Concerns

  • Is the lot buildable?
  • Is the lot large enough to accommodate municipality unified development ordinances?
  • Are the boundaries clearly marked and outlined?
  • Is there enough road frontage to allow for ingress and egress build?
  • Will I own water/mineral rights?
  • Are there flood plain, easements, or encroachments?
  • Are there environmental issues?
  • Will future nearby development affect investment?

Construction Concerns

  • Is there easy access for construction equipment?
  • Are there any soil problems or streams that may require extra construction costs?

dirt and shrubs on vacant landDesign Concerns

  • Is the land sloping or flat?
  • Is the area sunny or shady?
  • Wind exposure?
  • Does the land need fill or pipe?
  • Is the land in flood plain or wetlands?
  • Is there adequate room for parking?

Additional Considerations

  • Road frontage?
  • Distance to airport?
  • Distance to shopping/restaurants/hotels?

Costs Associated with Development

In addition to the costs associated with the purchase of the property, you must consider the costs of developing the land and, if necessary, providing certain utilities for the commercial property if city services are not offered. Use the following list of costs as a guideline for the total cost of purchasing and developing the property.

financial information and a calculatorMain Cost Concerns

  • Cost of land acquisition?
  • Engineering costs?
  • Municipal fees?
  • Water/sewer fees?
  • Connection/utility fees?
  • Septic system/well if no city services?
  • Legal fees?
  • Land clearing/excavation?
  • Permits/fees?
  • Road/driveway construction?
  • Final grade and landscaping?
  • Contaminated soil clean up?

Extra Considerations

  • Fire protection?
  • Insurance rates?

Choose Craft Commercial for Peace of Mind

At Craft Commercial, our real estate experts understand the needs of commercial real estate investors and are well versed in zoning regulations and development considerations in Raleigh, Durham, and beyond. If you are interested in purchasing land for commercial development, contact us at 919-446-5000 or info@craftcommercial.com.

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