Commercial Real Estate News / Development / Developing Garden Land Properties for Commercial Use

Developing Garden Land Properties for Commercial Use

Published: 02-15-24 Category: Development

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.

As we continue to recognize the effects of climate change, the benefits of choosing a greener lifestyle are clear. We have a variety of earth-friendly lifestyle improvements to consider adding to our daily lives.

For this reason, commercial investors' interest in buying, leasing, and developing garden land properties for commercial use is steadily increasing.

If you're considering this option, it can be a potentially lucrative source of passive income. If you're investing with a REIT or a partner, the development of garden land for commercial use can also be an ethical or “green” choice with careful management.

Investing in acreage described as garden land provides two major advantages: the vast selection of potential commercial uses, combined with the unique pleasures only provided by a green environment.

Garden Land Properties Offer True Flexibility

If you're wondering what sort of acreage is defined as a garden land property, they generally offer substantial outdoor space in a quiet/secluded area. They may be classified as garden land because of detailed landscaping or because natural amenities —such as a lake, river, or mountain range—are included or adjacent.

Garden land properties may be undeveloped land or partially developed acreage. For example, you may view a potential purchase with water and electricity or one that already has one or more finished buildings.

Your next step? Planning your development.

Advance Planning Before Purchase

Shopping for a garden land property without a plan is like shopping for groceries without a list. Whether you're planning to develop a garden center, fishing lodge, RV park, or special events venue, the requirements will differ.

Here are some steps to take before you begin visiting potential garden land properties.

Create a detailed business plan for the planned commercial development. Data should include specialized research on market demand.
Estimate future costs that will be incurred after development is completed, such as maintenance and repair costs, taxes, and insurance.
Make a list of infrastructure requirements, as these may or may not be part of your chosen property. These may include parking, utilities, and access roads.
Decide whether you prefer to purchase a garden land property with existing buildings or prefer to manage the construction of commercial buildings, event venues, or hotel/resort facilities.
Research the permits, licenses, or certifications you may need to launch your business. These vary by state, location, and business type.

After you've completed these tasks, you're ready to view potential garden land properties suited to your business plan. Here are some priorities to keep in mind.

Location, Budget, Traffic, Ecology

Your next step is locating a garden land property that's suitable for your overall plans and within your budget. The following list will help you locate these properties.

The right location is vital. For example, if you're building a luxurious hunting lodge, visitors will be willing to travel to a remote area. If you're building an event venue for weddings and reunions, you'll need a property that's easily accessible with plenty of parking.
Property sellers should provide detailed land surveys, including total acreage, topography, required buffers, and utility easements.
Surveys of larger properties should feature details or drone photography of the land's trees, vegetation, lakes, streams, and any professionally landscaped areas.
While you may search online for garden land properties for sale, working with a local commercial real estate broker often provides major advantages, especially if you plan to negotiate prices or contingencies with the seller.

These and additional tasks should be considered as due diligence. When completed, you and any investment partners should be familiar with the property's fundamentals, financing, and legal/compliance obligations.

After you find the ideal garden land property and finalize the purchase, its transformation into the commercial property detailed in your business plan can begin.

After construction begins, you or your management team will want to liaise with contractors and other staff to create a comprehensive maintenance schedule.

Maintenance for Completed Garden Land Projects

Even though investment possibilities in garden land property are practically unlimited, regular maintenance and upkeep are vital for its buildings and their surroundings. This helps guarantee continued investment income while limiting repair and replacement costs.

When creating a future care plan, you'll need to consider the following factors.

Address Unique Requirements

While you may locate basic preventive maintenance schedules online, your property may require its own “personalized” plan.

For example, if your purchase included a vintage fishing lodge, you may want to replace any original wiring or plumbing to simplify future maintenance.

Your plan should include:

Janitorial cleaning on a regular basis, with additional deep cleaning as needed.
Scheduled inspections of major systems, such as HVAC and plumbing.
Regular inspections of the property's landscaping, trees, and greenery.
Creation of a specialized account to fund all maintenance and repair costs, together with salaries for any full-time maintenance staff.

Keep in mind that a successful plan will help keep your investment's systems running efficiently while minimizing the need for expensive repairs.

Locate Licensed Professionals

You'll want to hire one or more professionals to manage overall property maintenance and bring in specialized repair personnel if needed.

Whether you work with a recruiter or ask trusted sources for referrals, either strategy will help you find reliable, skilled staff. You may want to take a potential new hire on a tour of the premises to ensure they understand and can manage your requirements.

Regular Property Inspections

Scheduling regular property inspections is important, as they can identify potential maintenance issues before a breakdown occurs. An experienced maintenance manager will be able to provide regular inspection reports that include any potential safety hazards, recommended repairs, and any other issues that require attention.

Monthly property inspections should always include HVAC systems, structural elements, electrical systems, plumbing, and the overall cleanliness of the property.

You may also want to bring in a landscaping expert or tree surgeon to ensure the continued health of the features that make garden land properties desirable.

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