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The valuation of raw commercial land for sale near me comes with unique challenges. A broker should be able to do a base level of analysis for you and should know what to look for when evaluating a formal analysis. However, hiring an experienced valuation expert is recommended.

Highest and best use 

For you to determine the ultimate value of raw land, you need to determine the highest and best use. It is unfortunate to state that when looking at raw land, the best and highest use is a matter of perspective. The highest and best use for a property developer might be a shopping mall, for a housing advocate might be an apartment project while for an environmentalist it might be a nature preserve.

The highest and best use of land is the use that is physically possible, reasonably probable, supported by the market and gives the highest value to the land. This means that when you see land on a commercial real estate app, different people might give it a different highest and best use.

Physical factors 

When determining land use, several physical factors should be considered. Here are some of them.

Size 

The size of the land is often overlooked by some people. However, it is a key determinant of the best and highest use. For example, an acre land cannot support a manufacturing facility that is 30000 square feet. This is because there would not be sufficient loading space, space for parking and unloading space for the business.

Shape 

The shape of the commercial land for sale near me include the depth and width. Irregular pieces of land have lower physical utility than rectangular or square pieces of land. Most big-box retailers have a specific requirement for width and depth for standard prototypical buildings. Pieces of land that don’t meet these needs are usually dismissed as potential sites for development.  

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