It’s a unique opportunity – but it’s important to do your research. Vacant Commercial property is vacant for very specific reasons! Some of those reasons are leveraged by existing use (zoning) disciplines; some may be encumbered by difficult natural conditions requiring complex modification, and some may simply involve a waiting game as development inches outward. There are as many reasons as there are vacant commercial real estate parcels in our County of Lake!
Investors who choose to invest in vacant commercially zoned property (that is not close to active development) are not typically looking for quick turn-around. More likely they are interested in longer-term value escalation. They may be investing for the future benefit of their heirs. Builders may see such property as a good opportunity to buy low and hold for future build-out.
Location is a very important factor when considering the purchase of vacant Commercial property. Don’t make assumptions or calculate personal speculations concerning value or the rate of increase in value! Consider location in the light of observable build out progress, existing zoning categories and facts, facts, facts. Local Planning Departments will have accurate answers to your questions.
Some answers are just plain common sense, of course. Vacant Commercial property (including with vacant structures) situated along US101 will very probably escalate faster in value as commercial development fills in along the frontage. Vacant commercial property more remotely located will probably increase its value more slowly – if at all. Vacant commercial property with old buildings from long past use may present some costly problems before you can put it to new use. Is there water? What will it cost to demolish old structures? Are there buried fuel tanks? ETC.
Discuss your motivation for considering such parcels with your commercial realtor. Knowing your willingness to invest for long-term value, or your need for a more immediate return, will be important in how your commercial realtor selects the
right properties for you to view.
Remember that zoning and zoning criteria changes. The values shift as well. For instance, property that once ran
livestock may be re-zoned for vineyard – because even “agricultural” zoning has categories with varying disciplines.
As regions have changed over the recent decades concerning preferred use, long-time residents and speculators may make
assumptions concerning how some commercial property has “always been used!”
It gets tricky! Are the records you research accurate? Sometimes even the tax records are not accurate. Vacant commercial property does not exactly invite constant review and fact checking – after all, it’s vacant! Certainly, active commercial property takes priority where monitoring its status, condition and potential are concerned.
Is this kind of investment right for you? If you are buying, then vacant property is often a Buyers’ market – if you know the facts and can reasonably see the actual potential and time lines. If you are a Seller and the market for such property is too slow, you might want to sell low and reinvest where you may get faster return on your money. It is worth your time to investigate values on comparable property in our adjacent counties. In any and all situations of vacant commercial property – be sure to do the homework!
Jim Magliulo is the leading Commercial Real Estate Agent in Lake County. He has been the company’s Sales Agent of
the Year for 5 years and holds the Lake County record for the highest total sales volume in one year for a non-broker
agent. He can be reached at County Air Commercial at 707-263-5729, at jim@countryair.com, or at www.CountryAirCommercial.com Send Jim your email address if you would like to be notified of new commercial
listing in Lake County.
