How to Develop Commercial Land

Developing land for commercial use can be a smart choice to increase the value of your investment property. Peter Laville, a Land Specialist with ELIFIN®, gives us some insight on current trends in commercial land development, and what to consider when beginning the process.

Identifying Investors

There are many steps to developing land for commercial use, but only one place to start: identifying investors, says Laville. “Not only do investors provide the financial backing necessary to purchase the land,” Laville explains, “they can also fund the process through all the development phases.” These include design, planning, construction, and even ongoing property management after the development is complete. Without this support, moving forward with any project becomes challenging. 

Finding Your Target Market

Understanding your target market is a critical part of the development process. Laville emphasizes the importance of clarity in this pre-development phase: “What are you trying to develop? And who’s that development ultimately going to be for?” You want your development to be marketable and profitable, and this clarity helps align your development with current demand and your investment goals. 

Partnering with a broker is often a great way to expedite the research phase of development, as they stay up to date with current trends in their market. 

When asked about the top trends in land development, Laville notes, “The highest use that we’re seeing in Louisiana currently is for single-family residential homes. There’s a distinct need for them in our market, and most land, especially larger land parcels, is going to single-family residences of all styles from starter homes to million-dollar custom homes.” Knowing what is currently in demand in your area is an essential consideration for developers looking to invest in profitable ventures.

The Development Process

After securing funding and clarifying your goals, the actual development work can begin. “Here you would see the purchase of the land, the gathering of the permits. You start and move forward with construction until you’re either ready to sell that development to owners or, depending on the stage you’re in, sell it to another developer. Or you might potentially lease that property out to start making returns on your investment.” Regardless of the outcome, the goal is to complete the project efficiently and move towards either selling or leasing the property to generate returns.

By staying informed about current trends and aligning projects with market demand, developers can ensure successful and profitable outcomes for their investment property.

Elifin Realty
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