Commercial Real Estate, Capital, Insurance, Leasing & Management

Is Your Property Shovel Ready?

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Industrial expert Larry Kahn explains how to determine whether your property is ready to do business.

In simple terms, “shovel ready” is a property in “ready to do business” condition. A survey, plat, roads, water management electric, water and sewer permits are in place. All the prospective buyer needs is some site engineering, a set of building plans and a construction permit allowing them to proceed. It is all about being ready to do business. Having a few shovel-ready sites in a community is a competitive advantage since most communities are not ready to do business. When a prospective buyer seek a site, they are ready to do business now, not 12 months from now. Are you ready to do business now?

Common Elements in Florida

Different markets have slightly different definitions of “shovel ready” with the most common elements being: Ownership of the site is clearly defined and in the hands of a third party such as a local government agency, developer, private company, etc. Detailed information on the site is readily available and packaged in a profile that includes Site boundaries and identification of adjacent owners, Layout of the site with a survey, plat or parcels, roads, utilities, environmental reports and water management permits, clearly defined pricing by parcel and acre. Identification of whether the site is in any type of Opportunity zone, HUB zone, New Market Tax Credit qualified or CRA that would qualify the prospective buyer for incentives. Completion of formal title search as well as geotechnical soils testing and archaeological studies. Defined transportation access to site and timing required for road and/or rail installation. Defined utility access to the site and timing required to run service to a specific lot/site.

Site selection is not much different from buying anything else. The buyer ends up doing business where there is inventory (a site) that is ready to be develop now. Is your site ready to do business? Contact Franklin Street with your industrial real estate questions. [email protected] or 407.458.5419

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