Whether you’re looking to start a business or expand your existing one, invest in your future, or grow an investment portfolio, buying commercial land is an excellent step.
Not only will the land provide you with an impressive building site, but it can also significantly impact your company’s bottom line and your financial position for future investments.
But if you’re new to purchasing a property like this, it may initially seem overwhelming. In this article, we’ll walk through every step of the process—from finding a commercial brokerage to work with and how to look for properties that fit your needs and budget to negotiating with sellers and making sure everything goes smoothly after closing.
Why You Should Invest in Commercial Real Estate Land
Commercial land is a good investment and an excellent way to make money. When you buy commercial property, you can earn rental income from tenants who want to rent your property or premises long-term in either a build-to-suit situation or provide your existing business with a viable storefront.
You can also sell the same property when its value increases because there is always demand for suitable commercial spaces in a highly traveled area.
Pick Up Some Knowledge About the Local Real Estate Market
The local real estate market is important when purchasing commercial real estate land. Property prices in the area can vary greatly, so it’s important to know what you’re getting into before making big, long-lasting financial decisions.
To make an informed decision about whether or not a piece of commercial land is worth buying, you must have access to information about property values in your area and other areas nearby. Talk with your commercial real estate agent or brokerage to better understand your local market and what you are getting into by purchasing commercial property.
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The Typical Journey to Purchasing Commercial Land For Sale
A commercial land sale can be a complex process involving many different factors. The key steps to purchasing a piece of commercial land include the following:
- Decide why you want to purchase the commercial property. Is it for future property investment purposes, business growth, or a long-term investment?
- Decide what type of commercial land lot you will be looking for prime commercial lots, an industrial lot, a retail lot, or a development lot.
- Line up your finances and secure a loan from a reputable lender.
- Work with a team of trusted industry professionals, including a commercial brokerage, a commercial land broker, a real estate attorney, a mortgage broker, and whoever else might be needed depending on the reasoning behind your purchase.
- Begin your search for the perfect commercial land opportunity.
- Make wise financial decisions.
- Make a solid offer on the property that makes sense for you and the seller of the commercial property.
With a solid plan in action, a clear vision, and an experienced team behind you, the perfect property will come up, and you will be ready.
How to Find Commercially Zoned Land For Sale
A commercial real estate broker can help you find the right land for your business or investment purposes. They’ll also help you understand the local real estate market and zoning regulations with their vast knowledge and experience. When looking at commercial land for sale, it’s important to consider the zoning of that property. You’ll want to find land zoned for commercial use, not residential or agricultural purposes.
It’s also important that your property has easy access to transportation and utilities–for example, a highway or railroad line nearby so goods can be shipped easily in and out of your business or the business that will occupy the site. Suppose there aren’t any major highways nearby. In that case, you should avoid purchasing this type of property because it will make transporting goods difficult and expensive for the business dwelling at the site.
To find properties like this, your commercial land broker will source options from specific commercial land sites like The New England Commercial Property Exchange (NECEP), LoopNet, or their extensive local contacts list.
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Find Out About the Infrastructure Available in Zoning Rules
When looking at land, you’ll want to learn about the infrastructure available in that area and zoning rules. The type of buildings you can build on a property will be determined by its zoning designation.
You should also look for land with room for growth; try finding land that will allow for future expansion. When in doubt about the regulations, future growth opportunities, or usefulness of the land, direct these questions to your commercial land broker, who can help you understand how this property may or may not be suitable.
Getting Your Financing to Purchase Commercial Land
To purchase commercial land, you will need to obtain financing. First, you should research the market and understand the financing options available. You also want to know your limits and be sure that any loan you take out fits within those limits.
Start by contacting local banks, credit unions, and other financial institutions to see what types of commercial loans they may offer. If that does not work for you, try speaking with a commercial land broker to see if they have another contact that could put you in front of a mortgage broker who can assist with your loan.
Understand the Basics and Atmosphere of Commercial Real Estate
Unlike traditional residential real estate, commercial land purchases and other commercial real estate transactions focus more on hard facts, numbers, and future financial growth. Residential real estate is often focused on emotion, feelings, and a sense of belonging regardless of the cost.
With commercial land sales, buyers should expect to make decisions based on numbers and financial gain rather than their emotional ties to a specific property. The bottom line, however, is that even though this type of real estate transaction is less clouded by emotion, it isn’t any easier than buying a home. Purchasing commercial land requires vast amounts of time, knowledge of the local area, usually a larger down payment on your loan, and a larger, more skilled team of professionals to guide you through the process.
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About NAI Glickman Kovago & Jacobs
As the leading commercial realtors in central MA, NAI Glickman Kovago & Jacobs is your home for commercial land for sale. We have an award-winning restaurant, retail, office, industrial, multifamily, and medical real estate management record.
We can also assist with land acquisition and development as a commercial brokerage. Our deep local knowledge comes from decades of business partnerships with commercial contractors and key community vendors. Whether buying, selling, or leasing, we can find the right property to fit your needs.
Contact us today if you need help finding brokerage, commercial construction management, or real estate property management in Worcester, MA. You can also follow us on Facebook, Instagram, and LinkedIn for more updates about commercial land for sale in Worcester, MA.