Selling industrial land to an end user requires substantial industrial land buyers — Land Boss work from a seller, including meeting buyer inquiries and negotiating contracts. Selecting a cash buyer like Land Boss that prioritizes simplicity makes the process much less burdensome.
Land that lacks utilities, such as roads or sewage systems, poses additional challenges to buyers. Lenders typically demand larger down payments and higher interest rates for raw land loans.
Build to Suit
Industrial buyers have a specific purpose in mind for the land they purchase. They may want to use it for manufacturing, warehousing, or logistics. They also may value it for its location, infrastructure, or zoning. They are typically more serious and motivated than residential or commercial developers, and they have the resources and expertise to close the deal quickly.
A key consideration for industrial investors is the availability of utility infrastructure, such as water and sewage systems, electricity, telecommunications, and waste management facilities. The lack of these services can significantly impact project costs and timelines, as well as operational efficiency.
Buyers should also consider whether the site is environmentally sensitive, and if it has any potential contamination issues. Contaminated land can lead to costly cleanup and remediation obligations for buyers, so proper environmental due diligence is essential. This involves conducting a Phase I and Phase II assessment before making a purchase. If contaminants are discovered, buyers should negotiate with sellers to resolve the problem or pay for its cleanup.
Contaminated Land
In the past, industrial activities often caused environmental impacts on soil and groundwater. Such sites are called brownfields. When land becomes contaminated, it must be investigated and cleaned up before it can be used for a new project.
Land contamination can be found in urban and rural areas. It can be caused by industrial activity, waste disposal and more. In some cases, there are clues that contamination is present – such as old lead paint in houses or a chemical smell on the ground.
To avoid buying contaminated land, it’s important to research local zoning laws and regulations before making a purchase. Zoning laws determine what you can and cannot do with a property, like whether it’s suitable for light or heavy industrial use. Also, owning your own land gives you more control over the setup of your business, rather than relying on landlord approval. You can also save on rent by purchasing your own space and invest in an asset that will grow in value over time.
Existing Structures
When you own land suitable for industrial use, you need to be aware of any existing structures or buildings on it. You may have to demolish, relocate, or otherwise deal with existing structures and infrastructure before you can sell the land. You should also make sure to clear any liens, encumbrances, or easements on the property before selling.
You should also prepare your land for sale by clearing, surveying, and zoning it. This will increase its value and appeal, and ensure that it meets the buyer’s requirements and expectations. You should also take steps to ensure that the land is legally compliant and free from any environmental issues.
Selling land to industrial buyers can be a lucrative and rewarding investment. By understanding the market, identifying the right buyers, preparing your land, offering flexible terms, addressing contingencies, and seeking professional assistance, you can maximize your chances of a successful sale.
Lease Options
While industrial sites do not always have structures on them, it is possible to buy industrial land that has been leased for specific purposes like parking equipment or storing gravel. These types of sites typically have very low vacancy rates and make for great investments.
When buying industrial land, it is important to conduct thorough due diligence on the property including assessing physical condition, environmental concerns, zoning regulations and potential liabilities. Thorough research and engaging qualified experts help reduce risk while also making the process of purchasing a piece of land less stressful and time-consuming.
To save time and reduce the chance of errors in oil and gas lease management, use Landboss to automate billing, expense tracking, 1099 payroll and more. This tool is used by operators, oil and gas lease brokers and independent landman alike to streamline the business of managing industrial leases. Vetting buyers thoroughly upfront helps avoid encountering unethical companies and individuals. High-pressure sales tactics urging immediate deal acceptance should be seen as a red flag.
