Do you have a piece of land that is currently sitting unoccupied? Do you have no near future plans for the space? What if you could invest your unoccupied property into commercial real estate development and make a nice profit? There is currently a strong demand for commercial real estate development, especially in the state of Florida. Building and leasing your space could produce a substantial amount of income, which is more ideal than leaving it untouched.
Increasing demand for commercial space
Following a depression or recession, there is a period of time that is great for business growth and investment. Much of the real estate market has recovered since the recent economic recession. This also means that the unemployment rates are decreasing and people are getting back on their feet. This allows people to take more risks and open the business that they have always dreamed of owning. Commercial leases are usually the first step, until additional equity and credit can be built to purchase their own space.
E commerce is one of the strongest growing industries right now. It is expected to grow at a compounded annual average rate of 10% over the next five years, creating tremendous opportunities for owners and developers of warehouse and distribution space. What if you good get in on this great opportunity? If you have spare land that is zoned for commercial usage or for leasing retail space, you can.
Evaluating commercial needs
You can utilize your unused land for commercial lease in one of two ways. You can either build a specific type of land, including warehouse or distribution buildings or you can build to suite. When you build to suite, you are asking a commercial business owner to sign a lease ahead of time. From there, you are paying for the build that they request. A build to suite lease is a type of promise for leasing a warehouse. It is a great way to ensure that there is a demand for the type of commercial building you are designing.
If you decide to invest in commercial real estate development on your unused land, you will need to be careful about zoning regulations. Some cities have requirements for what types of commercial buildings can go where and how far they need to be from the residential section of the city. Before you build, check with the city and their zoning requirements to ensure that you are following the regulations. However, you are likely to find that commercial warehousing is frequently zoned, as the demand is increasing.
Low risk investment
It can be expensive to build a commercial building or warehouse, so you might be hesitant to invest in the commercial real estate development. However, if you pay attention to increasing demands and city zoning, you will likely find that it is a relatively low risk investment. Since 2000, the amount of occupied distribution and warehouse space as increased by 86.2%. This number was also calculated before the recession had entirely recovered. With approximately 166,907 men and women working in the U.S. storage and warehousing leasing industry, you are likely to have great results in leasing distribution and warehouses space.
How to begin your build
If you are convinced that commercial real estate development is right for your property, you will want to begin the design process. After you have checked zoning requirements and considered your terms of lease, it is time to build. If you are building to suite, you will need to work with your renter on the design. If you are building without a renter, you will want to pay attention to current commercial demands and requirements.
Commercial real estate development is at an all time high. More and more businesses are developing and expanding and require additional warehousing and retail space. If you are currently sitting on unused land, this is a waste of your money. You could turn that unused land into a commercial space for lease that will profit you exponentially over time.