Commercial Land Use Trends
In our last two segments, we have talked about the importance of demographics, otherwise known as population growth. The impact of increased population is not just in the housing market via apartments, single family, etc.
The impact is also in workplaces, shopping centers, industrial/distribution centers and related uses of land. Undoubtedly, the impact of technology is changing the way America works and shops. It is also having a radical influence on the use of land.
Twenty-five years ago, a large distribution center was 150,000 square feet. Today, the norm that we are hearing about is 600,000 square feet and a very high percentage of distribution centers are in the 1M square foot range. For a frame of reference, 1M square feet of distribution center consumes approximately 80 acres of land, not including any of the environmentally sensitive areas that have to be acquired, but cannot be used.
The evolution of our society, driven by technology and population growth, is having a huge impact on land. The best land investments occur when land is acquired at an agricultural use, but sold for a use that society values higher than agricultural use of land.
Many restrictions are occurring in the marketplace today impacting the use of land. This means that land that can be used residentially or commercially will experience greater demand in the midst of less supply. Typically that combination means higher prices. Talk with us. We would love to help you take advantage of this opportunity to buy good land ahead for what is coming.
We believe that those investors who buy good tracts of land today will look exceptionally brilliant in five years. Let us help you. We enjoy making our clients look brilliant.