Commercial land development can be a lucrative investment, but it’s also complicated. A variety of pitfalls can stall projects indefinitely. Even experienced real estate developers may find themselves drawn into protracted litigation or abandoning projects halfway through. No matter what type of project you’re planning, careful execution and a comprehensive strategy are key components of a successful outcome.
4 Commercial Land Development Strategies
1. Have a Clear Need
Too many new commercial real estate developers jump into projects without a clear plan in place, inevitably leading to problems down the road. Before making a bid on a plot of land, have a clear understanding of your needs and a feasible idea for developing the property.
2. Understand the Shortcomings of a Property
When looking for investment opportunities, it’s easy to focus on the advantages of a property and downplay the risks. However, the success of your development depends on the property’s zoning designation, activity on neighboring lots, and the local political climate, so conduct a thorough analysis before making a bid.
3. Research Grants & Incentives
Many federal, state, and local grants are available for real estate developers investing in certain areas or industries. These resources may increase the profitability of your project substantially and, consequently, should guide your initial planning decisions. Researching available programs and submitting applications may be time-consuming, but the results are worth the effort if you receive additional funding.
4. Hire a Professional
Professional real estate developers have the expertise to help investors avoid litigation, select properties, and anticipate problems before they come up. Many experienced developers will also conduct market research, help identify incentives, and handle every aspect of project management, from site selection and design to overseeing finishes touches.
If you’re planning a project anywhere in Minnesota’s Scott, Rice, Dakota, Hennepin, Ramsey, or Steele counties, APPRO Development, Inc. & CERRON Commercial Properties, LLC, has the expertise to help bring your vision to life. This accomplished real estate developer has been serving investors and builders throughout the region for over 30 years, delivering exceptional results on a wide range of projects. Visit their website for more about their real estate development services, and follow them on Twitter for more tips and advice about commercial properties. To discuss your unique project with a member of their team, call (952) 469-2171.