Industrial land value vs. water/sewer availability?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
atikovi
Posts: 11
Joined: Tue Sep 10, 2019 7:20 pm

Industrial land value vs. water/sewer availability?

Post by atikovi » Tue Sep 10, 2019 7:37 pm

New member here but was on Fat Wallet since the start and on it’s spin-offs now. I’ve started searching for property I can build a small warehouse on. Found some lots of 2-4 acres in the $100-200K range at an industrial park in a rural area 30 miles from the Washington DC area. (Anything near my area would cost 10 times as much.) They would be on well water and septic which is approved. The smaller lots can have a 7,500 sf building which is pretty small compared to the lot size. Is it likely that if and when water and sewer becomes available, much larger building sizes would permitted and the value of the land would increase significantly? I wouldn’t be buying for investment but to use, but that seems to be a great side benefit.

Bacchus01
Posts: 3118
Joined: Mon Dec 24, 2012 9:35 pm

Re: Industrial land value vs. water/sewer availability?

Post by Bacchus01 » Tue Sep 10, 2019 7:51 pm

Is there a question in there somewhere?

Topic Author
atikovi
Posts: 11
Joined: Tue Sep 10, 2019 7:20 pm

Re: Industrial land value vs. water/sewer availability?

Post by atikovi » Tue Sep 10, 2019 8:01 pm

Like I said in the OP, Is it likely that if and when water and sewer becomes available, much larger building sizes would permitted and the value of the land would increase significantly?

tim1999
Posts: 3618
Joined: Tue Dec 16, 2008 7:16 am

Re: Industrial land value vs. water/sewer availability?

Post by tim1999 » Tue Sep 10, 2019 9:23 pm

Read the local zoning ordinance, specifically the section for the zoning classification of the parcels of land you are looking at. Many jurisdictions will dictate a minimum lot size and building footprint maximum for different types of uses, which may differ with and without public water and sewer. Where I live, without public water and sewer, the ordinances severely limit commercial/industrial development. Here you either find a site with public water and sewer in front of it already, or pay big money to have it extended to your site from a mile or more away The latter is feasible for developers building giant truck terminals and warehouses, but not someone building a small-potatoes 7,500 square foot building.

If you are at all serious about this, you need to hire a consulting civil engineering firm to evaluate the site and determine exactly what size and configuration of building could be built.

Otherwise you aren't going to get an accurate answer on here unless you post the name of the municipality and then someone local can weigh in.

StealthRabbit
Posts: 341
Joined: Sat Jun 13, 2009 1:25 am

Re: Industrial land value vs. water/sewer availability?

Post by StealthRabbit » Wed Sep 11, 2019 8:42 am

As mentioned, hire some pros to evaluate. Talk at length to planning department, look at LT growth plans, understand property owner portion of any utility extensions (can be assessed on frontage, use, potential use.) Dropping 1/4m $ on mandatory utility extensions is peanuts. Be prepared for that, plus the cost of mandatory abandonment or your well and septic systems. I do commercial property speculation, it has been very profitable when the stars align. It is a different animal, with specific skills and land mines. Find a seasoned mentor.

Post Reply