[page_footer]Industrial and commercial lots refer to areas of land designated by municipalities for business purposes. Essentially, this includes any activity that intends to earn a profit. If you’re interested in using a piece of land for commercial use, you’ll have to make sure that it’s commercially zoned. Other zoning categories include residential, agricultural, public, and mixed use.
Why Do Cities Zone Land?
The reason cities separate land use is to help reduce conflict. For example, if a large, loud factory is built near a residential area, homeowners might not be happy with the noise. Besides, it may also make the value of their homes go down. Therefore, for this reason, municipalities evaluate zoning carefully to minimize negative outcomes for all parties. In some cases, zoning can be changed. So, check into this possibility if you’re interested in purchasing a lot with another zoning designation.
Commercial and industrial land can be a savvy investment choice. However, it’s not always easy to know which piece of land will bring you the best returns. So, to help you we have listed some important considerations when you’re looking at commercial land for sale:
Considerations When Purchasing Commercial Land
Land Appreciates: The good news about buying commercial or industrial land for sale that hasn’t been developed is that it will probably only increase in value over time. Unless the location or characteristics of the land are so horrible that no business could profit there, commercially zoned land values almost always appreciated. On the contrary, commercial buildings generally depreciate or decrease in value over time. However, that’s not to say you shouldn’t build or purchase a lot with a building, it’s just important to keep this in mind when making your investment decisions.
Location and Surroundings: As with any real estate investment, the location of commercial lots for sale should play a key role in helping you decide whether you should/shouldn’t purchase the property. Also, the surroundings also matter when it comes to commercial lots. For example, if you plan to build a warehouse on the property, you’ll need excellent access to major highways and roads so that trucks can easily drop off and pick up goods. Or, if you want to build an office building, it should be within a reasonable distance from public transportation. Not only that, it needs to be large enough, so that you can include a big parking lot. Proximity to shopping centers, schools, and other similar businesses can also help attract renters.
Taxes: When calculating the potential profitability of commercial land for sale near you, don’t forget to factor in taxes. Commercial land is taxed at a higher rate compared to residential land. Therefore, you also need to remember to find an experienced tax expert to help with your tax calculations.
Hiring a professional tax expert is recommended for commercial property owners because the rates can differ when calculating what you owe on undeveloped vs. developed land. Also, because buildings depreciate, you can count this as a deduction on your taxes. Moreover, you should remember that certain aspects of the building such as HVAC system may have shorter depreciation terms which you can take advantage of when tax time comes around.
After carefully evaluating your costs and the income potential of a commercial lot for sale near you, it’s time to sign the papers and let your investment start earning returns.”[/page_footer]