Being a business owner means needing the best location to bring in sales. Land parcels provide an awesome opportunity to customize a location with whatever is needed, rather than having to depend on a pre-existing structure. There are things to consider when looking to make a land lease agreement.
Ground Lease vs Build to Suit
A ground lease involves leasing land for a long-term period—typically for 50 to 99 years—to a tenant who constructs a building on the property. For this reason, large chain stores like Walgreens and Starbucks often go for ground leases in their corporate expansions.
Build-to-suit leases have the draw of a location exactly matched to a business’s needs. It is a building specifically constructed by a developer to the design and physical specifications of one user, at the user’s chosen location. This kind of agreement expands the location choice, provides greater space efficiency, and lets the business better build its reputation.
Advantages of Land Leases
Whether looking to buy a parcel of land to build a house or looking to buy for investment purposes, a vacant lot has a number of advantages.
One of the main benefits of buying vacant land is that it is almost always cheaper than buying an improved lot. If all things are equal, a piece of property that has a building on it will be more valuable than one with nothing. Even if a building has very little worth, the owner of the land will have to pay to demolish it to make way for a new structure.
With an undeveloped piece of land, there is a blank canvas on which anything can be done, within the limitations of the jurisdiction’s zoning and building codes. With commercial properties, one has the ability to choose between constructing different types of buildings or one large building or a few small buildings for single tenants.
Whichever option is best for a particular business, it is worth the investment to see the vision come to life.
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Demetree Real Estate Services has many land opportunities available. Check out our listings here – https://www.demetreerealestate.com/land-parcels/
You made a good point that investing in land leases will always be more affordable than other properties. I’m planning to start an architecture firm after I get my master’s degree someday. It’s good to know about how land leases work in case I will have to work with industrial properties in the future.