Are you curious about how the value of your industrial land for sale might be impacted?

We have compiled a summary of the key factors that can influence the value of your commercial property, whether it is industrial, commercial, or agricultural land with redevelopment potential. This guide examines important considerations for buying or selling and provides an outline for effectively navigating the market.

Whether you're looking to sell your industrial property or purchase new land, the following factors should be top of mind:

Factors Impacting the Value of Industrial Land

There are numerous factors that can influence the value of your land. Some are specific to the property itself, while others are linked to external conditions like market demand, interest rates, and construction costs. We've summarized key elements to consider.

1. Zoning

Zoning regulations define how industrial land or your commercial property can be used and what is the highest and best use. Buyers should ensure the zoning aligns with their intended purpose, while sellers can enhance appeal by highlighting flexibility or potential rezoning opportunities. With a strong foundation in industrial real estate, Focused Industrial assists clients in analyzing these factors to make informed decisions about buying or selling industrial land in British Columbia.

2. Cost of Servicing the Land

Servicing the land—such as connecting utilities, building roads, or providing water and sewer connections—can greatly influence its appeal. Unserviced land may carry additional costs that both sellers and buyers need to account for. Securing loans for unserviced land can be challenging, as lenders may view it as a higher-risk investment due to the additional costs and complexities involved in developing it.

3. Environmental Hazards

Environmental studies assess the potential environmental impacts and liabilities associated with a piece of land or property. To maximize the value of your property, it's essential to complete a Phase 1 environmental report and ensure the land is free from contamination. This report evaluates whether the property is affected by hazardous substances or pollutants that could pose health or environmental risks. It verifies compliance with environmental regulations and standards, thereby helping to avoid potential legal issues or fines. Additionally, the report identifies environmental risks that could impact the property's value, development potential, or suitability for specific purposes. It assists potential buyers in securing financing and helps prevent challenges related to contamination and necessary remediation efforts.

4. Geotechnical Study

These studies assess soil stability and ground conditions. For buyers, understanding whether the land is suitable for construction can prevent unexpected costs. For sellers, addressing geotechnical concerns upfront can make your property more appealing.

5. Land Size and Layout

The size of the land is an important consideration. Larger parcels may offer more flexibility for development but can also be harder to sell, depending on market demand. Buyers often look for parcels that align with their operational or expansion plans.

6. Easements and Rights of Way

Easements or rights of way—such as utility corridors or shared access points—can restrict how the land is used. These need to be reviewed carefully to avoid potential conflicts during development and your net usable land size that will directly impact your property value. It is essential to verify how the land can be utilized in areas where there is an easement or right of way.

7. Watercourse Setbacks

If the land includes or is near natural water features, there may be regulations limiting construction. These setbacks can reduce usable land area, so it’s important to factor them into your plans.

8. Access Points

Efficient access is critical for industrial operations, particularly those involving heavy vehicles or large equipment. Poor access can reduce operational efficiency and, in turn, impact the land's market value.

Are you interested in maximizing your Commercial Property Value or Redevelopment Potential ?

Contact our team today for your complimentary consultation!