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Important Considerations When Buying Commercial Land

Whether you're expanding your company's operations, building a brand-new business from scratch, or looking for a new investment, buying and developing commercial land is a valuable proposition. It is widely perceived as a sign of...

Whether you're expanding your company's operations, building a brand-new business from scratch, or looking for a new investment, buying and developing commercial land is a valuable proposition. It is widely perceived as a sign of organizational success and market value. However, before jumping head-first into buying commercially zoned land, it is important to consider various factors to ensure you make the best decision for your business.

Commercial Property Zoning Laws and Regulations

Aerial view of commercial property and parking lot When buying land, zoning is the first and most important thing to consider. Zoning laws, regulations, and ordinances set by the city will greatly affect your future business plans. It determines the type of property you can build on the land and also affects matters such as noise levels, business signage, parking regulations, waste management, and more. If the land you're interested in is not properly zoned, an experienced commercial real estate broker can negotiate a contract contingent on re-zoning the land or getting a variance allowing you to deviate from the city's rules.

Accessibility of Commercial Real Estate

When purchasing commercial land, it's vital to ensure that it will meet your future expansion and accessibility needs. Consider factors such as the availability of additional parking space, the possibility of adding extra ingress and egress, proximity to major freeways, and easy access for construction equipment during the development phase. While location may not always be the foremost deciding factor, it holds undeniable importance.

Check for Available Utilities

Utility lines Before buying commercial land, it's important to confirm the availability of utilities that you will need. Don't assume that all necessary utilities such as phone/internet lines, septic systems, electricity, water, and gas will be readily available. Ask ahead of time to avoid any hidden costs. If specific utilities are not available, you need to assess the additional cost and effort required to acquire them.

Commercial Land Makeup: Design and Topography

Landscape Consider the design and topography of the commercial land you are considering. An inspector can help identify potential issues such as soil quality, easements, floodplains, the slope of the land, nearby water sources, and underground pipes or storage tanks. It's crucial to address these issues before finalizing the purchase to ensure the best value for your business plan and guarantee future success and a lucrative investment.

Deed Restrictions

Surveying equipment and bulldozer Even if a property meets zoning requirements, has all necessary utilities, and is easily accessible, deed restrictions can still pose obstacles. Deed restrictions are created by prior land or title owners and can legally forbid certain types of development. Common deed restrictions include limitations on building height, specific building characteristics, and property maintenance requirements. If faced with a deed restriction, a commercial real estate broker can help determine the best path forward, whether it's finding more suitable options or working with the previous title owner to modify the restriction.

Partner with Farbman Group on How to Buy Land for Commercial Use

The process of buying commercial land requires careful consideration and planning. To ensure success, it's essential to understand and comply with zoning laws, evaluate accessibility and potential for expansion, confirm the availability of utilities, assess the land's design and topography, and navigate any deed restrictions that may arise. Seeking the expertise of experienced professionals like Farbman Group can provide valuable insights and guidance throughout the journey.


If you have questions about purchasing or selling commercial land, contact Farbman Group and get in touch with an expert on our real estate development team.

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