ᐅ Development land for commercial use – long, narrow plot

Hello,

we have almost 3,000 sqm (32,300 sq ft) of commercial land designated for future development. Unfortunately, it is a long, narrow plot. The municipality wants to buy it, but we prefer to sell only after the land has been developed. Now my question: Such a long, narrow plot is hard to sell, especially since all the surrounding land belongs to the municipality. After the development, will the current shape remain, or will the plots be divided into more rectangular shapes— in other words, instead of 300 m x 10 m (980 ft x 33 ft), more like 30 m x 100 m (100 ft x 330 ft)?

Thank you

Counter question: If you don’t sell now, will the plot then be designated as building land / development land? Usually, only the mayor’s closest associates manage that; otherwise, those people usually end up stuck with worthless greenfield land 😉

Yes, it is designated as commercial building land, and we have already been given the range of development costs.

How is anyone supposed to know how the plot will be divided after the site development?

ernieundbert schrieb:

We have nearly 3,000 square meters (32,300 square feet) of commercial land with development potential. Unfortunately, it’s a long, narrow plot. The local authority would like to buy it, but we want to sell only after full site development. Now my question: such a long, narrow plot is hard to sell, especially since all surrounding land belongs to the municipality. After development, will the current shape remain, or will the plots be subdivided into rectangles—for example, instead of 300m x 10m (1,000 ft x 33 ft), something like 30m x 100m (100 ft x 330 ft)?

ernieundbert schrieb:

Yes, it will be designated as commercial land, and we have already been given a range for the development costs.

Three thousand square meters (32,300 square feet) is not much in a commercial area. Don’t underestimate what development costs can be—you won’t make a worthwhile profit margin in a commercial zone. I would say,

ernieundbert schrieb:

we want to sell only after full site development

look at it from the other side—“no one will buy land without development in place.” If the municipality still shows interest, you should probably accept their offer. From the investor perspective, I can tell you: small plots like this (even without the disadvantage of an awkward shape) will not be purchased without completed and approved infrastructure, not even near a busy highway interchange in a boom town.

ernieundbert schrieb:

After development, will the current shape remain, or will the plots be subdivided into rectangles—for example, instead of 300m x 10m (1,000 ft x 33 ft), something like 30m x 100m (100 ft x 330 ft)?

Land consolidation (replotting) also takes place in commercial areas but in a completely different way than in residential zones. Any pressure from the municipality to include your plot in such a process is probably the only reason there might be buyer interest at all. Honestly: don’t dream of advancing to the ranks of the elite investors with 0.3 hectares (0.7 acres) of commercial development land with potential only.

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The municipality is currently offering us 17 euros per square meter (approximately 1.6 USD per square foot), with development costs between 120,000 and 160,000 euros. The expected selling price according to the municipality is later supposed to be between 90 and 100 euros per square meter (approximately 8.4 to 9.3 USD per square foot). The exact area is 3,600 square meters (approximately 38,750 square feet). My main question concerns the shape of the plot. However, I am also grateful for any kind of assessment.