The Value of Excess Land
If you own a freestanding industrial building you may also own excess land, making your property worth more than you think…
The Opportunities of Excess Land
If you were to survey all industrial properties with freestanding buildings across the Fraser Valley, you would find that site coverage area ratio % (building footprint) falls within a narrow range. Undeveloped areas will account for various setbacks, drive aisles, landscape buffers, parking, etc. As a result, it’s common practice to use a prescribed site coverage ratio to determine the total land area that is required for an efficiently designed freestanding industrial building. If the total footprint of your building is below this ratio, congratulations, you have a low-site coverage building and own excess industrial land! Here are some opportunities:
Value the Excess Land Independently
Don’t rely on comparable building sales to estimate the market value of your property. Contact us today for a detailed price analysis of your building and excess land.
Demise and Lease the Excess Land
Are your operations so efficient you don’t use your entire property? Users desperate for extra space will pay up to $5.00/sf for yard space. Demise your property, have it professionally measured, and contact us to find a tenant and create a new income stream.
Subdivide and Sell the Excess Land
Want to pull equity out of your property but don’t want to move operations? Many of our clients have found great success in completing a subdivision and selling some of their land as a vacant site.
Your property may be worth significantly more than you think! In our extensive experience valuing and negotiating the sale of low-site coverage freestanding buildings, when positioned and marketed correctly, excess land can be just as lucrative as a normal vacant parcel.
Not sure if this applies to you or your property? Fill out the form below for a free property valuation.
Example of an Excess Land Sale
2.29 Acre Industrial Site in Port Kells
10202 177A Street, Surrey
- 2.29 acre industrial site
- Subdivided lot
- Sold by Frontline Real Estate Services
- Sale date: October 2022
- Sale price: $15,340,000 ($6.7M/acre)
- Click here to learn more