Recently Jimbo Cotton and myself sold a 17.5 acre parcel at 12419 Anderson Mill Rd to Travis County.  It’s our understanding that the land will be added to the County’s land preserve.  The property is to the west of RR 620 in NW Travis County.

On the other side of the adjacent parcel is land also owned by Travis County that is part of a preserve.  $850,000 was the asking price.

South Buda Business Park Land Sold Out

Recently I sold the last parcel of land (2.5 acres) at South Buda Business Park to Aces A/C Supply.

With this purchase the seventy (70) acre commercial subdivision is sold out of land.

Current occupants at the business park include Dynamic Systems, Capital Excavation, Fat Quarter Shop, Chamberlin Roofing, and Speed Tech Lights.

The website for Aces A/C Supply describes their business as follows

Serving the HVAC Contractor for over 30 years…

ACES A/C SUPPLY, INC. provides wholesale product sales, training, marketing and logistical support for HVAC dealers and contractors in and around Houston, Beaumont, Austin, Corpus Christi, San Antonio and the Rio Grande Valley.

Since 1983, ACES A/C SUPPLY, INC. has built a rock-solid reputation for fair pricing, dependable service and total commitment to the professional HVAC contractor.

Aces has begun work on the design of their new location.  Therefore it’s likely that by the fourth quarter of 2018 the new facility should be open to the public.

Along with Greg Gaynor at Fokus Commercial, we recently helped a private investor client purchase a 4,300 SF retail center in South Austin at 11525 Manchaca Rd.  Our  client was looking for an Austin area income producing property to invest in.  Despite the difficulty in finding quality investment property in the current Austin Commercial real estate market we identified this property and were able to assist in this purchase.  The seller was represented by EDGE Realty and the property was on the market for $952,000.

Click Here => Hurricane Harvey Housing Search Help

RENTCafe and their parent company Yardi have put together the following to help with those looking for housing as a result of Hurricane Harvey.

If you or someone you know needs help finding a home in the aftermath of #HurricaneHarvey, now you have direct access to available rentals in the area on RENTCafé’s Housing Registry, a Yardi initiative for residents displaced by the hurricane. #houstonstrong #harvey

According to The Kiplinger Letter online, Federal regulators are considering increasing the commercial loan dollar amount that would trigger the need for an appraisal.

Currently the loan amount is $250,000 or more and the proposed increase is to $400,000 or more requiring an appraisal.  If approved this would be the first increase to this amount in 23 years.

Kiplinger Letter online

Austin’s Rental Market Sees a 37% Drop in Apartment Construction This Year

• Texas has the most metros in the Top 20, and we’re talking of course about the Fantastic Four: right on New York’s tail, Dallas-Fort Worth takes silver with almost 25,000 new units, Houston grabs 3rd place with approx. 18,000 apartments, while Austin and San Antonio land at No. 13 and No.14 respectively, each with over 7,400 rentals.
• The 7,435 new apartments that are expected to hit the Austin market this year mark a 37% decrease compared to 2016, when almost 11,900 new units saw the light of day.
• The high number of completions has kept rates in check so far, with rents in the metro decreasing 0.3% Y-o-Y to reach $1,270, but for how long? Although Austin now has one of the lowest occupancy rates of the Top 20 metros (94.5%), it also features a strong employment sector with a reassuring 2.8% job growth. Moreover, people are moving to Austin in droves, making it the 3rd fastest growing metro in the country, with a 2.9% population change.

According to Yardi Matrix senior analyst Doug Ressler, all this new construction may well work in the renters’ favor, at least in the near future : “With more units on the table, renters may be able to get some discounts and concessions on new leases, including one month of free rent, waived move-in fees, and free gym memberships.”

Article is being reprinted with permission from the author courtesy of RentCafe.  Original article can be found at the following link:  https://www.rentcafe.com/blog/rental-market/us-apartment-construction-at-a-20-year-high-in-2017/

Mark Pustka with McAllister & Associates recently sold an office property near Mueller.

1310 E 51st, an office building on about 1/2 acre that has long operated as the local headquarters for the Mechanical Contractors Association of Austin.  A local, private investor purchased the property.

The property’s asking price totaled $975,000.  The Buyer’s plans have not been finalized but they are excited about the location.  East 51st street across from the Mueller redevelopment is a hotbed of real estate deals.  The success of the nearby mixed use redevelopment project fuels this surge.

Mark Pustka and Joe McAllister with McAllister & Associates recently sold a 13 acre affordable housing site in Austin.  The parcel’s location is in the 7600 block of Old Manor Rd near Springdale Road in NE Austin.

Rise Residential Development purchased the property and represented themselves in the transaction.  They plan to construct a 264 unit apartment community.  The community’s design focuses on families with children.  Rise is one of the largest developers of affordable multifamily in the US.  Over the last 3 years Rise ranks 7,8 and 19^th nationally in annual value built.

The targeted market for this community is affordable housing – a significant concern for the City of Austin and its residents.  According to the Texas Tribune “The Austin area had the smallest percentage of homeowners and renters — 59 percent and 40 percent, respectively — able to afford the monthly payments of a median priced home.”

McAllister & Associates has served Austin and the Central Texas with over 30 years of quality commercial real estate services.

Austin Market Forecast 2017

The 2017 Urban Land Institutes’ Emerging Trends in Real Estate has been released.  Austin sits atop their list of Markets to Watch.  This annual report analyzes data gathered by surveys conducted by the Urban Land Institute.

Categories examined by the report include Overall Real Estate Prospects for Investment and Development opportunities (ranked #1), Homebuilding Prospects (ranked #11, Raleigh/Durham #1), Economy, Housing, Investor Demand (ranked #5, Seattle #1), Development / Redevelopment Opportunities (ranked #16, Boise #1) Availability of Debt and Equity Capital (ranked #7, Nashville #1), and Local, Public, and Private Investment (ranked #17, Dallas/Ft Worth #1).

Austin continues the three year run of Texas cities that lead the survey (Houston in 2015, Dallas/Fort Worth in 2016 and Austin in 2017).

Despite Austin’s growing popularity, it remains a comparatively small market in terms of investment opportunities. While Austin is unlikely to attract a meaningful amount of off-shore capital, it tops many domestic investors’ wish lists. This makes the market very competitive. Despite the amount of competition, local, regional, and national real estate participants operate in relative harmony in the market. This cooperation has helped keep adequate levels of debt and equity capital available for investment opportunities.

The full report can be found here Emerging Trends in Real Estate – United States and Canada.

Tech Sector focus of current Austin Office Market

According to Jones Lang Lasalle’s High Technology Outlook report the tech sector remains the top industry for real estate expansion in the U.S.

Over the past two years it is estimated that 25% of leasing activity across the country is attributable to the tech market.

Austin is the third most resilient tech market in the U.S. This means that even in the event of an economic slowdown the Austin tech market is projected to remain strong.

The following provides an idea of how big the tech sector is in the Austin market.  In 2011 seven of the tech giants occupied just under 900,000 square feet. Today that has grown to nearly 3.2 million square feet or an increase of 268%.

During the third quarter of 2016, 430,000 square feet of office space began construction. One million square feet of new office space is expected to be delivered during the first quarter of 2017.

The three largest submarkets in Austin – Northwest, Southwest and CBD represent 70% of the Austin inventory. From the 3rd quarter of 2014 to the 3rd quarter of 2015 rental rates increased almost 10% year over year. From the 3rd quarter of 2015 to date CBD rates have continued their pace of growth at an increase of 8-10% year over year. However Northwest and Southwest submarkets have slowed to a 2% year over year rate of growth.  Read more at JLL Office Insight, Austin | Q3 2016.

Austin Industrial Vacancy at 6.7% as of the Second Quarter of 2016

Austin Industrial Vacancy near Historic Low.

City wide Industrial vacancy in Austin stands at 6.7% as of the end of the second quarter in 2016, a low that hasn’t been seen since the late 1990’s.

Three Austin sub markets have vacancy less than 3% including the Far Northwest, Northwest, and South.

Warehouse vacancy totals 5.1% city wide.

There was 180,000 square feet of positive net absorption in the second quarter with 167,000 square feet of this total being warehouse space.

Warehouse and flex rates have increased by 24.5% and 31.6% respectively since the first quarter of 2014.

Four new industrial properties are under construction in the Southeast submarket for a total of 623,000 square feet under construction.

Flex rates are becoming competitive with value office rents in parts of Austin.

OBSERVATIONS  With vacancy low and demand remaining strong expect rents to continue to rise.

Click here for the detailed CBRE Marketview Report.

Multifamily Land For Sale at 4500 Nuckols Crossing, Austin, TX 78744

27 acres of Multifamily Land For Sale in southeast Austin!  This property is in a great location for apartment development.  Currently three multifamily complexes are located in the area. Woodway Village, Rosemont at Williamson Creek and King Fisher Creek apartments.

The site is easily accessed from Highway 71 East, Interstate 35 or South Pleasant Valley Rd.  A Dollar General store is located around the corner for very convenient shopping.  The property is located near where East St Elmo St transitions to Nuckols Crossing.

The property includes 315 feet of frontage along Nuckols Crossing Rd.  There is a water line along the lot frontage.  Wastewater is located in a manhole across from the northern most edge of the road frontage. The property slopes to the northwest of the property to a creek.

ZONING: In City of Austin process for a change to Multifamily land use and plan to file for rezoning in the near future.

The Seller is asking $14,500 per multifamily unit.  300 to 500 multifamily units are the estimated density.  Click here for a flyer for the sale of this property =>  4500 Nuckols Crossing Site For Sale

The Seller would welcome the opportunity to work with a Buyer on the zoning and planning for this property.  Interested parties please contact me at 512 970 8359.  Click here for the Loopnet listing.

South Lamar Office Space Available.

Currently there are two suites available for lease at the 3901 South Lamar or One West Hills office building in Austin, Texas.  The property is staffed by on site property management and is pristinely maintained and serviced.  Convenient and easy access to One West Hills is provided by S. Lamar frontage, and adjacencies to Loop 360, and Highway 290 / 71 (Ben White).

The building is located between the Pluckers and Red Lobster restaurants on the south end of Lamar.  Construction from the past few years has resulted in a re-birth with vibrant new restaurants, bars, apartments and condominiums now available.  Click here for a guide to South Lamar provided by do512.com.

3901 South Lamar boasts on site US Postal service, as well as UPS, Federal Express and Lone Star Overnight drop-off.

Office suites 120 and 225 are available for Lease.  Suite 120 on the first floor near the south entrance is available and totals 1,262 square feet.  Suite 225 is on the second floor and totals 790 square feet.

Three years minimum is required for lease terms.  Lease rate rate will be determined by a look at the Tenant’s history and the amount of necessary improvements to the space.

The Austin office market has absorbed office lease space steadily since 2012 – until now.  For the first time since then the market has finished a quarter with negative absorption or in other words the market is returning more lease space to the market than leasing office.

It is too soon to jump to any conclusions after one quarter of negative absorption but in the least it does seem to signal that the office market is settling into a more modest growth rate in absorption and rent.

• Q1 2016 absorption totaled 500,000 SF and Q2 2016 netted a negative 24,000 SF
• Rent is still on the rise increasing on average .9% over the quarter
• Year over year, the average Class A Central Business District Space has seen rent increase from $43.52/SF to $49.52/SF
• Suburban office rates increased slightly from $35.71/SF to $35.74/SF
• Almost 200,000 SF was added to the market during this quarter with the completion of 3 office buildings.  These 3 buildings were 92% leased upon their completion.  These buildings include 1 at the Domain, and 2 in Round Rock
• During the second quarter Unemployment has decreased from 3.3% to 2.9%

Click here for a link to Colliers International Research & Forecast Report Austin Office Q2 2016

AUSTIN AREA INVESTMENT PROPERTY NEED

Currently I’m working with several Investor Clients looking for income producing properties.  Their budget is in the $1,000,000 price range and they will consider Central Texas areas as well as Austin.

Property types that would work include retail such as a small shopping center.  Office properties like a small office building or Industrial properties such as a warehouse will also work.  Multi tenant properties are preferred.

South Loop 4, (FM 967 South) Buda, Texas Office, Retail Sites

Commercial Land For Sale

Two, 6 acre tracts For Sale at the Hope Pond Valley entrance to the Meadows at Buda subdivision.  Asking price is $4.50/SF of land area.  The parcels are zoned C2 / R2 which allows for retail or office uses.  Office Condominiums would seem to be an ideal use.  All utilities are available to the site(s).  The tract to the north of Hope Pond Valley totals 6.55 acres and the asking price is $1,274,130.  The tract to the south of Hope Pond Valley totals 6.28 acres and the asking price is $1,231,006.

The property can be found on South Loop 4, in Buda, Texas. Traveling from the north on I-35, exit 217 on I-35 S, Turn right onto South Loop 4 and proceed approximately 1/2 mile and the property is on the right.  Traveling from the south on I-35, exit 217 on I-35 N, then proceed to Robert S. Light Blvd and turn left.  Continue on Robert S. Light until South Loop 4, turn left on South Loop 4 and property is in 1 mile on the left.

Click here for a link to a Flyer.

Click here for a link to Loopnet.com property listing information.

Buda Commercial Land For Sale

The last commercial lot in the South Buda Business Park subdivision is available for purchase at $4.00/square foot of land or $435,600. 

This land parcel is 2.5 acres in size and is located on Business Park Drive.  The subdivision is located on the west side of FM 967 South (Loop 4) approximately 1,200 feet west of the intersection of FM 967 and IH-35. The lot has great access to the Interstate Highway.  South Buda Business Park is located in Buda, just south of Austin, Texas, and near the new Seton Medical Center in Kyle, Texas. The property is a few miles South of Cabela’ s and an HEB Center to the north and Lowe’ s, Home Depot, and a Kyle, Texas HEB Center to the south.

A detention pond is in place for the lot and 85% Impervious Cover is allowed (Buda standard for this zoning is 75%).  The zoning for this property is I2 and this property is one of the few I2 zoned properties in Buda.  The lot has Monarch Utilities water, gravity wastewater, and Time Warner fiber optic service.

Dynamic Systems recently completed construction of a 114,000 sq. ft. manufacturing facility within the park, as well as Capital Excavation which constructed a 10,000 SF building at the rear of the South Buda Business Park property. Fat Quarter Shop purchased 6 acres and has recently completed construction.

Click here for a link to a Flyer.

Heritage Oaks Lot For Sale – SOLD

Lot 7 at 17 Heritage Oaks Drive,

Dripping Springs, TX 78737 

2.808 acres in size

Location:  17 Heritage Oaks Drive

Heritage Oaks Drive where Sentinel Hill “T’s” into it

Lot Frontage:  +/- 208’ Heritage Oaks Drive frontage

Lot Size:  2.8 Acres

Jurisdiction:  Dripping Springs, TX

Utilities:  PEC Electric

Well Water or West Travis County Public Utility Agency – Water Tap and Fees estimated @ $6,500

Septic System for Waste Water will be necessary

Homeowners Association:  Link to Heritage Oaks Landowners Association

Asking Price:  $190,000

Biggest Multifamily Developments of 2015 Added 3,400+ New Units to Local Inventory

• Last year proved itself to be a robust year for Austin multifamily development, with a total of 17 projects being completed in the 50+ unit segment – adding a striking total of 5,028 units to the local rental inventory.
• Out of the 17 major developments, the top 10 biggest projects (by number of units) alone delivered 3,404 apartments to market. With no project of under 300 units, the top producers – ten biggest multifamily developments of 2015 – delivered nearly 70% of all apartments released in the 50+ segment in 2015: 3,404 apartments.
• The Addison at Kramer Station alone added 388 new units, with runner up The Mansions at Lakeline delivering 374 units to market. The Bowie was the sole other project of over 350 units (358 to be more precise), with buildings like Escape at Four Points, Bexley at Whitestone, and Hanover South Lamar also making their way to the top 10.

To see the full list, click here: Austin’s 10 Largest Rental Developments Completed in 2015

SOLD

Great Hills Land For Sale

GREAT HILLS / LOOP 360 AREA OFFICE SITE

“LR” Neighborhood Commercial Zoning

Corner of Bluegrass Drive and Bluffstone Drive

2 Acres, 2 Blocks West of Loop 360, Near Arboretum, NW Austin

Lot Size:             2 Acres

Zoning:              Neighborhood Commercial allows for Office and retail uses.

Frontage:           +/- 220 feet along Bluegrass Dr. and 440 feet along Bluffstone Dr.

Jurisdiction:        City of Austin, TX

Zoning:              LR (Neighborhood Commercial) Rezoning to Residential or adding Residential overlay is a possibility

Utilities:              All

Price:                 Asking Price – $350,000

2.05 Acres of Great Hills land is for sale on the corner of Bluegrass and Bluffstone in northwest Austin, Texas.  Zoning for the property is LR or Neighborhood Commercial allowing for both Office or Retail use.  Rezoning or adding an overlay to allow for Residential is a possibility.  $350,000.

Anderson Mill land for sale, totaling 17.52 acres for $1,100,000.  Price Reduction.

The site is located one mile west of North FM 620 and HEB Plus Grocery Store on Anderson Mill Rd. This Anderson Mill land is located three miles west of Lakeline Mall and the Highway 183 and State Highway 45 interchange. The area has excellent demographics and would be an excellent location for uses including office, retail, multifamily or single family home(s).

The land totals 17.52 acres in area and is on the market for $1,300,000.

The topography slopes from the northeast to the southwest. There are wo natural drainage channels on site. Located in Lake Travis Watershed. Limited to 20% impervious cover of Net Site Area. No 100 year floodplain.

The property is located in the Leander Independent School District.  Water service is available from the City of Austin and is located 2,000 feet east of the property.  Sewer service is located 2,700 feet east of property.  A net site assessment is available.

For Loopnet listing information click here => Land for sale on Anderson Mill West Austin, Texas

When considering a property purchase in Austin, determining the zoning is a critical part of the due diligence process and an Austin zoning determination is one of the first issues that should be addressed.

If the property is located within the City Limits a zoning category is assigned to the property.  This will dictate the land use allowed.  Zoning is a way for a municipality to provide some order to land uses in their jurisdiction. In a simplistic view of Austin zoning the more compatible land uses are located next to each other.  The less compatible uses are located further away from each other. An example of compatible uses would include different kinds of housing being located next to each other.  Incompatible uses would include houses for example not being located near manufacturing plants.

Therefore purchasers of land need to know and understand the zoning category assigned to the property they are interested in.  By doing so they will understand what can and can’t be constructed on it. A real estate agent should be able to assist the buyer with this.  Sometimes this can be done on the internet as is the case in Austin by using the Online City of Austin Zoning Information link.

In addition to a zoning determination the city will typically provide a list of uses that are allowed under the zoning category. If a property doesn’t have the zoning necessary for the use then an attempt can be made to have the zoning changed.  This is a formal process accomplished through the local city government. This can be time consuming and costly and there is no guarantee that the request will be approved. A civil engineer, land planner and/or attorney should be consulted when a zoning change is being contemplated to make sure that the process and its risks are identified.

The Austin San Antonio Corridor’s future is shown in this graphic provided by lawnstarter.com

This infographic is brought to you by Lawnstarter San Antonio

Commercial land for sale in Kyle, Texas

Commercial land is available and for sale in Kyle Texas at the Hays Commerce Center project.  This development is set to be the next major commercial development in Kyle.  The project is planned for a variety of uses including industrial, office, and retail.  The 100 acre site is located at the northwest corner of Interstate 35 and Kyle Crossing.  Lot construction is set to begin in October of 2015 with finished tracts scheduled for delivery in July of 2016.

Location and Access

The site has excellent access and a convenient location Commercial land for sale in Kyle, Texas.  The property is located at the northwest corner of Kyle Crossing and Interstate 35 along the northern city limits of Kyle, Texas.  The property is easily accessible from Interstate 35 whether you are traveling north bound (Exit 215) or south bound (Exit 217).

Size

The site is 100 acres in size and includes lots that range in size from one acre up to 16 acres with the flexibility of allowing for larger tracts if so desired.

Jurisdiction

The property is located in the city of Kyle, Texas, in Hays County.

Zoning and Use

The property is zoned Planned Unit Development or PUD which allows for a mix of uses including industrial, office and retail.

Utilities

Bluebonnet Electric will provide electrical service, CenterPoint Energy will provide natural gas and the City of Kyle will provide water and wastewater to the site.

Lots

One to Sixteen acre lots are available for purchase at Hays Commerce Center.  Page 5 of the 6 page pdf brochure below shows all of the lots as well as the internal roadway layout.  There are two phases of construction planned for this development.

Price

Pricing for the lots in the Hays Commerce Center start at $4 per square foot for lots internal to the project and range from $12 to $13 per square foot for lots with I-35 or Kyle Crossing frontage.

Scheduled Completion

The first phase of Lot Construction is set to deliver in July of 2016.  Depending upon lot demand the second phase will begin thereafter.

Kyle, Texas

Kyle is located along Interstate 35 and is the second largest city in Hays County, the fastest growing county in the nation.  Kyle is approximately 20 miles south of Austin and 60 miles north of San Antonio.

Contact Mark Pustka, McAllister & Associates for more information.  mark@matexas.com  512-486-3737 (office) or 512-970-8359 (cell)

Click Here for Link to Brochure

Click Here for Link to Site Plan

The Austin Office Market for Quarter 3, 2015 continues to explore new heights of superlatives with the latest news regarding its performance.  Highlights include:

ABSORPTION

•  649,339 square feet of positive net absorption for the quarter which is the highest quarterly absorption since Q4, 2012.
• Year to date absorption surpassed 1.5 million net square feet.
• If Q4 2015 net absorption is around 300,000 square feet this will set an all time high for annual net absorption.
• Year to date net absorption for Class A now totals 1.5 million square feet.

RATES

• The average asking rate is $31.53/square foot which is $2.30/square foot greater than one year ago.
• Class A average asking rate totals $36.36 / square foot, Class B is averaging $25.61 / square foot, and Class C comes in at $21.50 / square foot respectively.
• Highest asking rates remain in the Central Business District where they currently total $40.53 / square foot, followed by the Southwest market at $33.77 / square foot, and the Northwest at $31.43 / square foot.

VACANCY

• Vacancy rate is at 10.9%, the second lowest rate ever and the lowest since Q4, 2014.
• Central Business District vacancy tightened to 7.8% with Class A space at 8.8%.

CONSTRUCTION

• Finished construction has exceeded two million square feet year to date, the highest level of new product delivery since 2008.
• Two buildings totaling 340,000 square feet were delivered in the third Quarter with 28% of the lease space in these buildings pre-leased.
• New construction starts in the 3rd Quarter include Domain 8 which totals 291,000 square feet with none pre-leased to date.

CBRE Austin Office, Q3, 2015 Report

Austin is ranked second nationally for overall real estate market outlook for 2016 according to “Emerging Trends in Real Estate 2016” a recent report by the Urban Land Institute and PwC LLP.

The 2016 outlook for all property types in Austin is well above average according to the report with particular favorability shown toward single-family and retail.

The report notes that domestic and global investors are looking more at secondary markets such as Austin when considering locations to invest capital.  Austin also ranks in the top ten markets for entrepreneurship in 2015 according to the Kauffman Foundation.

Austin is ranked first for new development across all 75 markets surveyed, second for homebuilding and fourth for investment properties.

Some of the reasons for this high ranking include:

• Austin has the highest % of millennials (those between ages of 16 and 35) with 32% surpassing Los Angeles and Madison, Wisconsin.
• The cost of doing business in Austin is 102% of the national average, far less than cities such as New York which is 160% and San Jose which is 129%.
• Prospects for jobs and homes continues to be a key for identifying top markets and both remain strong in Austin.
• Co-working office space is an emerging niche market in office lease space and Austin is one of the cities that seems to be embracing this new approach.
• Austin setting a 140 gallon per capita daily water goal and revising water conservation code to address long term drought conditions.
• Austin’s use of a high frequency bus network.
• Low cost of living and strong growth potential in the housing market.
• Austin is a market with hospitals, universities, trade ports, and strong infrastructure – which is important to investors.
• Austin properties have good tenant mix, are experiencing good growth, and rents continue to move upward.

Click here to download the pdf report version.

South Lamar affordable housing is under construction at Bluebonnet Studios a multi family project consisting of 107 efficiency units at 2301 South Lamar.  The project is being constructed for Austin based Foundation Communities and will be dedicated to low income tenants.  SpawGlass is the contractor for the project and its anticipated to cost about $15 million dollars and will include 60,000 square feet of air conditioned space.  Completion is scheduled for August of 2016.  The project was designed by Dick Clark + Associates and Forge Craft Architecture + Design.

The project is intended for tenants such as low wage workers in the service and entertainment industries that work downtown and need to be close to work.

If you are looking for land to purchase in Austin, there are several important items to consider.

I’m an Austin Real Estate Broker and am experienced in selling and helping Buyers purchase land. Austin land purchase considerations should include:

1. What is the cost of the land? If I pay $1,000,000 for 10 acres to build a shopping center does that cost fit within my budget?  Or is $500,000 the most I can pay and still have a profitable project?  What have comparable properties in this same area been selling for?  If you can buy in this price range then you are “buying right”.  How much am I going to pay in annual property taxes?  A buyer will pay for a pro rata share of the taxes owed when the property is purchased, but remember that this is also an ongoing obligation.  How much are annual property taxes and can I afford them?
2. Does the location work for the intended use? For example if someone is trying to build a convenience store is the site in a high traffic area?  If it is a retail use is it “on the driving home side” of the street?  Or if someone wants to build expensive homes is the location suitable or is it too close to commercial uses like an office building or a shopping center?  What do the adjacent properties look like?  Would I want to locate my intended use for the property next to what is currently located adjacent to this property?  Is the property next door taken care of or if I purchase next to it will it diminish my property value?
3. What governing jurisdiction is the land located in? The City Limits? Is it in the Extra Territorial Jurisdiction (ETJ) of the City? Is it outside of these areas and in the County? The jurisdiction that the property is located in will dictate which rules and regulations need to be followed.  They will be different if you are in the City Limits vs in the Extra Territorial Jurisdiction vs in the County.  It might be advantageous to be in a particular jurisdiction – City A vs County as well.  There might also be state and federal laws that will impact the development of the property.
4. If the property is in the City, what is the zoning category assigned to the property? The zoning category dictates the land use allowed on the property. If a property doesn’t have zoning or if a zoning change is to be requested then that will add to the time and cost.  Something to keep in mind is that zoning change requests are not always approved.
5. Deed restrictions are private agreements and restrictions specific to the land in question.  They are noted in the deed, and restrict the use of the real estate in some way.  Deed restrictions can be attached to property whether it is zoned commercial or residential and are in addition to local, state and federal rules.  Deed restrictions can be more restrictive than other governing rules.
6. Are there utilities to the site? Utilities would include water, wastewater, electricity, natural gas, telephone, and cable television. Water is the most important.  Water and wastewater are typically the most expensive utilities to extend to a property. There are work arounds for a lack of water and wastewater such as drilling a well for water or constructing a septic system for wastewater.  However these work arounds also involve ongoing maintenance and a limited lifespan.
7. Is any portion of the property in a floodplain? If so then the buildable or developable area of the property will be reduced.  This in turn typically will reduce the value of the property.
8. What are the topographic conditions of the land? Is it flat or is there slope to the land? The more steep the slope the more it will cost to develop the land because of the necessary cutting and filling of the soil.  In general flat land is preferred although a hillside location for a home or office can provide a very nice view.
9. Is there roadway access to the property? If so is there an existing driveway and curb cut in place or will this have to be permitted and constructed?  How likely is it that a permit can be obtained at this location or is there already a driveway nearby which might diminish the chances?  Is the roadway in a state of disrepair? If so then what are the chances that the roadway will be repaired and how might this affect my planned use?
10. An easement is a legal right to use another’s land for a specific purpose. Are there any easements on the property that might restrict or otherwise unduly affect my ability to improve the property?  Examples of easements include public utility easements which allow utility providers to install and maintain utilities.  Easements can also be the means of providing access to properties that do not otherwise have roadway frontage.
11. A lien is an encumbrance on one person’s property to secure a debt the property owner owes to another person. Before purchasing property it is important to determine through the Title Search and Commitment process if there is an outstanding lien on the property. It is best to have the property owner take care of liens before the buyer closes on the property because it is easier to leverage a lien being released.

Remember one of the most basic questions that should be asked about the property is – “Why is it vacant and why hasn’t something been built on it?”