Frequently I am asked to consider a property for industrial site selection. Properties fit into two types.
“Shovel Ready” is marketable functional property with proper zoning in place, permits for water management, roads, utilities, water, sewer, power and gas or at a minimum engineering plan for all of this. It has a plat and a site plan which allows for breaking off a portion of a larger property for that new factory. This property is ready to develop subject to obtaining a building permit and other rapid approvals.
“Raw Land” lacks all of the above and particularly lacks engineering and proper zoning. The engineering and zoning process takes between 6 to 9 months, water management permits in takes up to 24 months, bringing water, sewer and gas takes up to 12 months and plus, the lack of roads adjoining the property and in the property. Additionally, this is costly with an average cost of about $1,000,000 per 100 acres. Often, this landowner wants to put up the land and find a joint venture (JV) partner to provide the funding.
Prospective buyers prefer a “Shovel Ready” site because it is ready to go and are especially impressed with sites that are certified as shovel ready by an engineering firm. Raw Land takes too long and has too many variables. Can you get zoning? How much does it cost to bring the property to a functional condition? Site selection is not much different from purchasing anything else. I want it ready to use, I want to understand the costs and I want it now.
Bringing your property to market can be remarkably easier. Learn more. Franklin Street, a full-service commercial real estate firm, was established in 2006 and serves clients around the Southeast from its offices in Tampa, Orlando, Jacksonville, Fort Lauderdale, Miami and Atlanta. Laurence Kahn can be reached at [email protected] or 407.458.5419.