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Assessing The Unique Features Of Commercial Real Estate Parcels
s commercial real estate • Utility availability
development progresses into • Environmental status of the
the 21st century, many of property
the principles upon which the • Any existing or planned
market was founded remain the surrounding commerce
same. Whether you are a property
owner, developer, or commercial Let's explore some of the primary
real estate agent, identifying features of commercial land, and
and marketing the unique features how each is interpreted by
of your commercial property will buyers.
maximize the attractiveness of
the site to prospective buyers or Location, Location,
tenants. Location
Depending on the highest and best Because real estate is finite,
use for the property, you may be location is a fundamental
able to attract a wide spectrum consideration in the purchase
of potential buyers to your site. decision formula for buyers.
In addition to basics such as Unless a property is
price or zoning, experienced undevelopable, each site has
buyers - local or national - will unique benefits that will meet
consider several key factors of the needs of a buyer seeking a
each potential site, including: particular criteria. Increasing
the number of potential buyers is
• Location and visibility dependent on efforts to realize
• Any existing physical and market the full value of a
improvements on the site parcel's location.
• Average daily traffic count,
or ADTC Location not only encompasses
• Site access city and state, but also
variables such as traffic
arteries and surrounding If your property includes an
commerce. Research neighboring obsolete or deteriorating
parcels to learn what sort of structure, consider razing the
future commerce, residential structure before marketing the
communities, or roadways are site. Incorporating this expense
planned for development. into the asking price is
oftentimes easier and more
Aerial photos are a great way to profitable than deducting it from
showcase a site's potential. the price during negotiations
Google's free satellite mapping with the buyer.
service provides detailed aerial
images for most of the United Average Daily Traffic Count
States. To view your property, (ADTC)
visit: http://maps.google.com.
The amount of daily traffic
Existing Physical traveling on nearby roadways can
Improvements be an excellent selling point for
even the most difficult
Contrary to popular belief, properties. Many counties
existing physical structures on a maintain Average Daily Traffic
parcel may hinder a property's Counts (ADTC) records for major
value, as opposed to increasing roadways. If the property is
it. If a site has exceptional located near or adjacent to an
location, access, and traffic, intersection, acquire the ADTC
but includes a functionally for both roads. Prospective
obsolescent structure, the cost buyers will appreciate these
of razing the structure will be a figures being readily available
primary consideration for any in the site's marketing
prospective buyer. materials.
The second (and less favorable)
ADTC is a significant factor option is "right in, right out"
particularly for national access, which limits vehicle
entities, such as quick- and access to right turns from a
full-service restaurants, single lane of traffic. Because
gas/convenience stores, hotels, right in, right out limits the
and other entities that depend site's access to a single
heavily on daily traffic patterns direction, depending on the ADTC
to draw patrons. of the affected lane, this may
limit the interest of certain
Site Access Options buyers.
Site access - that is, legally If a site has potential for
permissible access to the site broader access options, the
from nearby roadways - can make property owner may want to
or break a transaction. Even the consider requesting a
best site can become a lemon, modification from the applicable
depending on access limitations. municipality. Performing this
legwork before placing the site
Generally speaking, there are two on the market will significantly
types of access to a site. The increase potential for realizing
first is "full" access, for the full asking price.
oncoming traffic from both
directions. Depending on a Utility Availability
roadway's existing configuration,
this may require the installment Although still common practice in
of acceleration/deceleration many areas, properties that
lanes, blisters, or traffic employ well and septic systems
signals. are regarded as secondary sites
in comparison to those with
modern utility infrastructure. weight in gold. A seller can be
held liable for undetected
The cost of bringing utilities to environmental property defects,
a site may be a significant even after a transaction is
factor to some buyers. If consummated. The key to a
possible, property owners should successful transaction is full
consider having electric, water, disclosure.
and sewage improvements brought
to the site before marketing the If it is determined your property
property. Again, such a has environmental issues, such a
preparative measure can optimize status does not make the site
conditions for realizing the broadly undesirable. The cost of
site's full asking price. clean-up can be integrated into
the asking price, made the
Environmental Concerns responsibility of the buyer, or
even shared between both buyer
With a rapidly growing number of and seller. Other unrelated
potential environmental issues, factors, such as location or
buyers have increasingly made ADTC, may outweigh negative
environmental site assessments a aspects of the property.
contingency in their purchase
agreements. This is a must in Surrounding Commerce
transactions involving properties
prone to environmental issues, Surrounding commerce can play a
such as aging gas/convenience significant role in the future of
stores, as well as parcels any property. Even if physical
adjacent to these entities. structures have yet to be
developed, knowing the plans for
The expense of an environmental nearby parcels can help determine
assessment can be worth its the highest and best use of your
property. the county assessor to determine
future development plans for
If your site is located within an adjacent properties.
expansive commercial district,
you'll have little difficulty in Becoming familiar with the unique
identifying surrounding commerce features of your commercial
to determine potential uses for property is the best way to
your property. Conversely, if the achieve a maximum ROI on your
site is located in an area investment. A competent
gradually shifting from commercial real estate agent will
residential to commercial use, or have to skills and resources
a tract of vacant land with necessary to help property owners
minimal surrounding commerce, it research these important aspects
will be necessary to speak with of their property.
other property owners as well as
About the Author:
Jim D. Ray is a parapsychologist with a diverse background in multiple subject concentrations, including business, psychology and parapsychology, criminal justice, philosophy, education, internet technology, physics, and vocal performance arts. Jim can be reached by e-mail at: jray@web-presence.net.
Source: www.isnare.com
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