The Biggest Mistake Buyers Make When Evaluating Development Sites
The most common mistake in buying development land is paying for density you can't actually build. How to price a site on what it can really deliver.
The biggest mistake we see buyers make is paying for density they can't use.
A site is zoned for a certain number of units or square feet. The buyer runs the numbers on that maximum, and the price follows.
Then the real constraints show up.
What cuts into the number
Parking. Required spaces can eat a large share of a small lot.
Setbacks and height limits. The building envelope is often smaller than the math assumed.
Lot shape and size. An irregular or narrow parcel may not fit an efficient building.
Utilities. Water, sewer and power capacity can limit what gets built, and upgrades are expensive.
Approvals. If the plan needs a variance or a public hearing, the timeline and the risk both grow.
Price on what you can build
The better question isn't "what's the price per square foot of land?" It's "what's the price per unit, or per buildable square foot, of what will actually get built?"
Two sites with the same land price can be worth very different amounts once you answer that.
How we evaluate a site
Before a client makes an offer, we look at zoning, the real building envelope, utilities and the approval path. Then we compare the price to sites that actually got built, not to asking prices.
Thinking about a development site?
Let's look at what it can really deliver before you commit.
Devtrac Properties · 6310 NW 2nd Ave, Miami · 305-998-5505 · hello@devtrac.properties