Published on Wednesday, November 04, 2015 by Land Century
Weve done our best to try to determine the average land prices across the country to give you a general idea of what you can expect to pay or sell your commercial land for in todays market.
Commercial Land Price Averages Around the Country
Much of the information that weve been able to find is either old and outdated, or not complete when it comes to commercial land prices across the country. So, we decided to take a different approach to determine land prices in several different states or regions of the country.
Were going to take a look at a few states and see the low and high end prices of real estate meant for commercial use.
The state of New Jersey is known to have very high property costs. During our search, the cheapest lot of New Jersey land that we found that is zoned for commercial use was $29,750 for 2 acres of land. This comes out to just under $15,000 an acre.
Another interesting property, which includes raw commercial land, sits right next to residential homes and includes 10 acres of land for $35,000, or $3,500 per acre of land. Please note that this land will take substantial work to prepare it for building.
One piece of property was exceptional and priced at $4.5 million. This property features 45 acres of land, roughly $100,000 per acre, is a ready zone for commercial use and has plans for a 330,000 ft.² athletic facility. This is in a prime location in a very busy spot in the town of Freehold, New Jersey.
Florida has a lot of opportunities for land, and also a lot of auctions that take place where land could be had for very low price. The cheapest lot of land that we found was in Chipley, Florida. This lot cost $7,500 and featured just 0.32 acres of land. The next cheapest lot that we found was in Cape Coral, Florida, and featured 10,000 ft.² of land for $18,900. This is an average market comparison and does not include our cheap Florida land section where we are hitting prices way below market medians.
The first property that we found that had multiple acreage was priced at $175,000 for a 3 acre parce0,l which comes out the $58,333 per acre.
If youre looking for commercial land in a hotspot, such as St. Petersburg, Florida, expect to pay over million dollars for 5,700 ft.². The priciest lot we found was in Delray Beach, Florida and was on sale for $4.995 million for 3 acres of land.
Texas is a gigantic state, and these prices are from all over the state. Palestine, Texas had the cheapest commercial land available, with one acre going for $7,500. This is in a prime location right next to a big plaza with a lot of foot traffic potential. When going into some of the biggest cities in the state, the cheapest commercial land in Houston was $13,500 for 6700 ft.². A .35 acre lot in Dallas, Texas was on sale for $29,000.
When looking for a lot of land, a major highway that included 32 acres of land for $2 million. This is a great location for automotive service companies or shopping malls. Check out some other Texas acreage for sale.
Minnesota is a few states north of Texas, and still a mid-west state. We found a line of Main Street land that was priced very well. You could buy a 5200 ft.² lot on Main Street in Sherburn, MN for $6,000. There is even a plot in St. Paul Minnesota that is selling for $19,000 for just under 4000 ft.² of land.
If youre looking for cheap land that is zoned for commercial use, youll want to look in San Bernardino, California. A 7,500 square-foot lot for just $2,500. A 10,000 square-foot lot is selling for the same price.
If you want to move into a more busy area, there is a 2,800 ft.² lot for sale in Compton on a busy street with a lot of traffic going for $150,000.
We found nearly an acre, 0.91 acres to be exact, in San Diego, California for sale for $115,000. What we can tell is that land in the middle of the city, or a busier main street, will have a much higher price attached to it. This is common knowledge and something that you should expect when looking for land in California. You'll also find lots that are zoned commercial that are virtually nowhere near a major city. This may be due to the land being zone commercial for agricultural use, which is the case in some states.
If you find a plot of land with a lot of acreage that is selling for a very low price, youll want to investigate the land's typography and usability. A lot of properties we came across were heavily treed and would require a massive undertaking to make ready for commercial use.
A lot of owners are also selling for cash and willing to finance part, or all, of the transaction in some cases. Youll want to make sure that you have a contract in place that is legally binding and valid in the eyes of the law before giving your cash to an owner that you dont know. Theres a lot of to diligence that must be done before delving into buying land from an owner.
One major factor that we have discovered is that there are no patterns in the prices of commercial land aside from the fact that land on main street or in business sections of town are much more expensive.
The best option is to investigate the city, determine where a good location, or several good locations, exist and try to find commercial land in these areas. If you choose to purchase commercial land that is 10 or more miles from the city center, the land's value will appreciate slower. If you build the property in that location, it will be harder to bring in customers.