Land Acquisition Rundown | The Basics
For developers looking to get their project off the ground, one of the first steps is figuring out just where they will literally get their project off the ground. Land acquisition is more complicated than finding an empty lot and deciding to build there as land can be acquired in a multitude of ways, from purchasing it directly from the current landowners to entering into an option contract (where a developer can have a hold, of sorts, on the land without immediately paying the full price). In this blog, we’ll cover some of the basics of land acquisition and helpful information to keep in mind when undergoing the complex—but exciting—endeavor.
Initial considerations will range from location, zoning, use, environment, utilities, and more. Understanding what you want from the land and how you’ll utilize it is an important first step when searching for where you would like to build, as road infrastructure, topography, access to water and sewer, etc., can either enhance or impede the future of the project. For example, if you’re looking to use the land to build a high-rise residential condominium building, it will need to be able to adequately handle the necessary utilities that residents would require, like a sewage system for wastewater or a water system that supplies a clean water supply.
Zoning is another hot topic for developers. How an area is zoned will influence what type of project you will be able to build on the land, such as a commercial, residential, or industrial property. You’ll also have to comply with the guidelines that dictate the building’s size, like height and square footage. Different municipalities have different rules, considerations, and limitations that will affect your project, so doing specific research beforehand is important.
If you’re newer to the complex world of land acquisition, it’s crucial to surround yourself with a team of talented, savvy professionals. Enlisting the help of an experienced broker will ensure that you’re being guided by someone who has dealt with the numerous moving parts involved in the process. It’s easy to be held up by unexpected problems as you take on your venture, but a broker who has handled many transactions of this sort before will be able to anticipate most of these factors ahead of time, keeping you on schedule and progressing forward.
Certain cities, like Seattle, have programs that grant developers who intend to use the land to build affordable housing with benefits that make it easier to acquire the land. These programs encourage developers looking to get their projects realized, allow the city to work towards solving housing issues, and set residents up to someday be able to live within the affordable housing building. It’s important to carefully comb through the requirements as they will be more intensive than just your average land purchase.
Some cities, like Sammamish, are acquiring land to preserve the natural beauty of a region, protecting the habitat from future development. In cases like these, developers are forced to think more creatively and find other areas to responsibly build their projects, respecting the city’s attempts to keep an area from being over-developed. The state of Washington, as a whole, has many preservation objectives when it comes to obtaining and maintaining wildlife areas and natural resources, as outlined in the “Strategy for State Recreation and Conservation Land Acquisition and Development” plan.
Land acquisition is always the beginning of a truly exciting opportunity, like the seedlings of what will one day be a flourishing garden. Contact me if you’re looking into where, when, and how you can make your development dreams a reality.