Commercial Real Estate News / Leasing/Renting / 5 Prime States for Renting Commercial Land in 2022

5 Prime States for Renting Commercial Land in 2022

Published: 04-04-22 Category: Leasing/Renting

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

Most industries have an extended debate about rent vs. buy, but when it comes to commercial real estate, it really is great to rent sometimes. Take commercial land for rent: what if you have an idea that would take off, but you don’t want to sink a bunch of money into acquisitions.

There’s a better way, and renting the land is a great way to bring all of your mad scientist-style experiments to live. There might not be a real-life Igor to flip the electric switch on the wall, but there are five prime states for renting commercial land in 2022 and beyond.

Let’s get down to it, including looking at the differences in cost per acre in the most popular counties within each state. Demand will play a heavy role in not just cost per acre, but also the cost to rent the land itself.

#1 – Texas

Renting commercial land in Texas is never a bad idea; the entire state is devoted to business expansion, with multiple state and local programs designed around entrepreneurship. Below are some of the cost per acre for land in the Lone Star State:

Harris County: $11,675;
Tarrant County: $10,568;
Travis County: $9,769;
Bexar County: $8,926.

Naturally, variances in the data would exist, especially as the subject turns to improved vs. raw land. The more improvements made to the land in terms of farming techniques, land clearing, and building additions, the more valuable the land becomes.

#2 – Florida

The Sunshine State allows for an immense range of agricultural products as well as the perfect backdrop for horses and other farm animals. Classic fruits and vegetables that grow in Florida include lemons, avocado, kale, parsnips, cauliflower, oranges, limes (including the legendary Key lime product), and multiple varieties of garlic.

Here are some of the cost per acre values for the most popular counties in Florida:

The difference in cost per acre would naturally reflect the differences in what you can do with the land within the different counties of Florida. For example, citrus production is a staple of the state, with established citrus farms going for top dollar. Land that has to be modified significantly would carry less value.

#3 – California

California is an agricultural paradise, with a crop diversity that is virtually second to none. If you’re hunting for a prime state to get started, you really can’t go wrong with looking around California.

Here are the cost per acre values for the Golden State:

Sonoma County: $150,000;
Tulare County: $30,000;
Mendocino County: $1000,000;
San Joaquin County: $40,000.

While these land values are higher compared to other states, it is also safe to say that the return on investment can be much higher as well. California has held steady demand in the eyes of investors for a long time, making for a hot real estate market that is classically valued for its versatility.

#4 – Kentucky

The rich soil of Kentucky isn’t the only thing that’s sending more people to check out the Bluegrass State: the land values are definitely beginning to increase as well. Here are a few of the cost per acre values for the Bluegrass State:

Warren County: $6,100;
Fayette County: $5,200;
Jefferson County: $3,800.

Land value data tends to be a year or two behind, but the rising demand in the state of Kentucky indicates that these values have only increased since the figures first came out.

#5 – Missouri

The Show Me state is certainly living up to its name: agricultural data on land values is not only easy to find, it’s broken down and color-coded by the University of Missouri Agricultural Business and Policy Extension site.

Here are the best cost per acre values in Missouri:

Marion County: $7,635;
Ray County: $7,192;
Morgan County: $5,875;
Vernon County: $4,344.

These aren’t the only counties in Missouri, of course. However, they do represent some of the most popular counties to purchase land in. Out-of-state investors will find that many of these counties have access to some of Missouri’s more populated cities and agricultural hubs, like Kansas City, Nevada, and St. Louis (with a bit of driving).

Other Considerations for Renting Commercial Land

It isn’t just the cost per acre that should be the sole factor in renting land in a particular state. It’s also important to look at the type of land up for grabs. Indeed, the type of land also plays a role. Is the land primarily wooded, or cleared? What type of upkeep is expected in order to keep the land looking its best?

These are just a few considerations to keep in mind as you look through various listings of commercial land for rent. The right piece of land is the one that helps bring a business objective or process to completion, but finding it may take a little longer than meets the eye.

Once the right property is selected, then it’s time to check it out, talk it over with all of the project stakeholders, and then talk to the property owner about a win-win agreement that lets you lease the land for the projects you have in mind.

Embrace the Versatility of Commercial Land

Ultimately, the land is what you make of it. The right plan absolutely makes a difference. Some get discouraged by the idea of renting land instead of owning it. However, the reality is that renting is only temporary. It’s very possible to build a plan to acquire the land in time, based on how successful the business venture is.

Think of renting like a hedge against the unknown. The monthly rent paid to the property owner is a hedge against not having to take on all of the uncertainty. You already have enough challenges making a business venture successful. It’s perfectly OK to rent until the business can handle acquiring things.

List & Browse Commercial Land for Lease for Free on MyEListing.com!

You can list and browse commercial land for lease for free right here on MyEListing.com. Create a free account and get access to free comp software, accurate local market intelligence, customized property type alerts, and more.