As commercial real estate development progresses into
21st century, many of
principles upon which
market was founded remain
same. Whether you are a property owner, developer, or commercial real estate agent, identifying and marketing
unique features of your commercial property will maximize
attractiveness of
site to prospective buyers.Depending on
highest and best use for
property, you may be able to attract a wide spectrum of potential buyers to your site. In addition to basics such as price or zoning, experienced buyers – local or national – will consider several key factors of each potential site, including:
* Location and visibility * Any existing physical improvements on
site * Average daily traffic count, or ADTC * Site access * Utility availability * Environmental status of
property * Any existing or planned surrounding commerce
Let’s explore some of
primary features of commercial land, and how each is interpreted by buyers.
Location, Location, Location
Because real estate is finite, location is a fundamental consideration in
purchase decision formula for buyers. Unless a property is undevelopable, each site has unique benefits that will meet
needs of a buyer seeking a particular criteria. Increasing
number of potential buyers is dependent on efforts to realize and market
full value of a parcel’s location.
Location not only encompasses city and state, but also variables such as traffic arteries and surrounding commerce. Research neighboring parcels to learn what sort of future commerce, residential communities, or roadways are planned for development.
Aerial photos are a great way to showcase a site’s potential. Google’s free satellite mapping service provides detailed aerial images for most of
United States. To view your property, visit: http://maps.google.com.
Existing Physical Improvements
Contrary to popular belief, existing physical structures on a parcel may hinder a property’s value, as opposed to increasing it. If a site has exceptional location, access, and traffic, but includes a functionally obsolescent structure,
cost of razing
structure will be a primary consideration for any prospective buyer.
If your property includes an obsolete or deteriorating structure, consider razing
structure before marketing
site. Incorporating this expense into
asking price is oftentimes easier and more profitable than deducting it from
price during negotiations with
buyer.
Average Daily Traffic Count (ADTC)
The volume of daily traffic traveling on nearby roadways can be an excellent selling point for even
most difficult properties. Many counties maintain Average Daily Traffic Counts (ADTC) records for major roadways. If
property is located near or adjacent to an intersection, acquire
ADTC for both roads. Prospective buyers will appreciate these figures being readily available in
site’s marketing materials.
ADTC is a significant factor particularly for national entities, such as quick- and full-service restaurants, gas/convenience stores, hotels, and other entities that depend heavily on daily traffic patterns to draw patrons.
Site Access Options
Site access – that is, legally permissible access to
site from nearby roadways – can make or break a transaction. Even
best site can become a lemon, depending on access limitations.