Charlotte NC Commercial - Blog #land developmentCharlotte NC Commercial - Blog #land developmenthttps://www.charlottenccommercial.com/blogs/tag/land-developmentFri, 17 Apr 2026 14:31:35 -0700http://zoho.com/sites/<![CDATA[Land Development Agreement]]>https://www.charlottenccommercial.com/blogs/post/land-development-agreement

Land Development Agreement

The acquisition and improvement of land is a large-scale operation and requires large amounts of capital. This has created methods of land acquisition that gives the developer access to and control over a large enough tract to make development economical without requiring an initial outlay of all of the capital necessary to acquire such a tract.

From the point of view of the landowner, the disposal of a large tract at a good price may require a formula that will encourage the developer to commit improvement and development money for part of the tract that will build future value into the entire tract.

This may be accomplished by the following:

  • The developer sets up a master plan that sets forth the general scheme of development and submits it for the approval of the owner.
  • The developer and owner enter into an agreement setting forth the acreage prices for the entire property.
  • Owner and developer agree on the number of years over which the full development is to be completed.
  • To protect the owner against freezing of his property, the developer firmly commits to buy a predetermined number of acres each year.
  • If the developer fails to meet this schedule, the owner is released from his commitment.

Development Agreement   

Another way of handling the problem is for the developer to share the net profits from the land development with the landowner. This can be done by a “land development agreement” in which the developer agrees to perform the platting, the laying out, the installation of lot improvements, and the promotion of the subdivision. The landowner agrees to accept a percentage of the sales price of each lot, with a fixed minimum guaranteed. For example, the developer agrees to pay net to the landowner 25% of the sales price of each lot sold, with a minimum of $50,000 per lot.

With this kind of arrangement, it is important to protect the landowner from finding his land cluttered up with liens left by a subdivider who became insolvent. The landowner should consider confining the developer or subdivider to a small tract of land at a time and give him “rolling options” to acquire additional parcels at intervals over a period of time. Failure to keep up with this purchase program results in loss of future options. The land that has been optioned but not purchased is not subject to liens against the developer.

​Liability for Not Proceeding

In one case, a jury found that a village breached its contract with a real estate developer calling for the village to acquire property and convey it to the developer for construction of apartment houses and a shopping center, all conditioned on obtaining financing from HUD. The village repudiated its explicit undertakings, to acquire and convey property to the developers. HUD had granted the main application and was in the process of considering the other grants involved, so the village could not back out of its promise.

[Heritage Commons Partners v. Village of Summit, 730 FSupp 821, (ND Ill. 1990)]

Get Started Now
]]>Mon, 01 Dec 2025 13:59:00 -0500<![CDATA[Marketing Of A Commercial Or Apartment Building]]>https://www.charlottenccommercial.com/blogs/post/marketing-of-a-commercial-or-apartment-building
In this issue
  • Marketing Of A Commercial Or Apartment Building
​A new tenant and an investor share the same first impression of a commercial building or an apartment property. That first impression is crucial. Before marketing the property, think about the outside appearance. The “look” affects both tenants and buyers. The following is a checklist of first-impression items that a good property manager must use:.....(more)
  • The Self-Storage Market Demand
One in ten U.S. households now rent a self-storage unit. The growing demand for self-storage in the U.S. is created by people moving (some 40 million people move each year according to U.S. Census data), and by various lifestyle transitions, such as marriage, divorce, retirement, a death in the family, etc. Recent surveys of self-storage companies indicate a positive trend in market demand and occupancy rate......(more)
  • Financing A New Development
When an investor purchases land to build on, the next step is land development and financing. “Land development” cannot be precisely defined; generally, it refers to the physical, legal, and engineering processes needed to convert raw land to land (or lots) on which buildings can be placed.Land development can be classified into the following six stages:.....(more)
  • Help With Investment Real Estate
When you have searched for new real estate investment opportunities, with values that have been changing, you know that finding and evaluating them is becoming more sophisticated and complex. More investors are turning to real estate consultants as a means of providing a sounding board for their ideas as well as expertise in the planning and construction stages for their projects......(more) Click Here For This Months Newsletter
]]>Tue, 01 Apr 2025 13:41:08 -0500<![CDATA[The Investors Leverage With Options]]>https://www.charlottenccommercial.com/blogs/post/the-investors-leverage-with-options
In this issue
  • The Investors Leverage With Options
Leverage is the use of borrowed money to control something of value. Real estate investments for many years have afforded the investor some extreme leverage situations. Let’s examine leverage. If double-digit inflation returns, controlling the maximum amount of real estate may be extremely desirable. One way to do that is with an option. High leverage is an excellent benefit. Remember though, that with an option there is a problem. Options have an expiration date. If you haven’t gotten the desired increase in value by the time the option expires, you must make the choice - buy the property and wait longer, or let the option expire......(more)
  • How Lease Property Is An Estate For Years
There are real estate investors who specialize in making profits, sometimes big profits from properties that they lease and do not own. This cash flow from a lease can be extremely interesting. Often the lessee making a huge profit has a relatively small cash investment in the property.....(more)
  • The Master Plan For Land Acquisition
The acquisition and improvement of land is a large-scale operation and requires large amounts of capital. This has created methods of land acquisition that gives the developer access to and control over a large enough tract to make development economical without requiring an initial outlay of all of the capital necessary to acquire such a tract. From the point of view of the landowner, the disposal of a large tract at a good price may require a formula that will encourage the developer to commit improvement and development money for part of the tract that will build future value into the entire tract. This may be accomplished by the following:.....(more)
  • Real Estate Investment Advisors
Today’s investor in real estate must be aware of market conditions and potential that is usually beyond their own available time to attain. Investors need assurance about the true condition of the market. With increased competition, the market place is becoming more complicated. As your professional commercial real estate advisors, we are in the position to represent you in real estate transactions by setting up sales, exchanges, leases, purchase and sales of options, and management of real estate....(more) Click Here For This Months Newsletter
]]>Fri, 01 Nov 2024 20:28:46 -0500<![CDATA[Important Differences In Commercial Real Estate Leases]]>https://www.charlottenccommercial.com/blogs/post/important-differences-in-commercial-real-estate-leases
In this issue
  • Important Differences In Commercial Real Estate Leases
​When there are vacancies in commercial buildings, tenants may feel that they are in a good position to seek concessions from landlords on new leases or in exchange for extending or renewing existing leases. Landlords are apt to make deals for two reasons: (1) The landlord may be facing high vacancy rates, and (2) The landlord also recognizes that tenants may also be suffering from declining business during a recession and are less able to pay the high rentals......(more)
  • The Agreement Between Land Owner And Developer
​The acquisition and improvement of land is a large-scale operation and requires large amounts of capital. This has created methods of land acquisition that gives the developer access to and control over a large enough tract to make development economical without requiring an initial outlay of all of the capital necessary to acquire such a tract. From the point of view of the landowner, the disposal of a large tract at a good price may require a formula that will encourage the developer to commit improvement and development money for part of the tract that will build future value into the entire tract.......(more)
  • How To Refurbish For Future Profits
IWhen you want an increased return on an older property it may be time to refurbish the property. When you look around a community, you will usually find a number of properties that need to be upgraded. Some existing owners do not recognize the increased return that they could get or do not want to make the necessary investment. Often these buildings can be acquired at a price that reflects the return based on the current condition and income.....(more)
  • Communication Between Management And Owner
For success in achieving the owner’s objectives, there must be open communication between the owner and the management company. The process must be continuing from the onset of the management plan based on the owner’s objectives to the dissemination of monthly and annual financial reports for the owner’s records. Meetings between the owner and the management company should be set up on a regular basis. In these meetings, topics such as major repairs, personnel problems and rent collection can be reviewed. In-between meeting, managers must communicate serious problems with the owner immediately, so they can be addressed in a timely and cost-effective manner. Constant communication is essential to the process of management.....(more)
  • The Need For Both Asset And Property Managers
When owners of large portfolios of investment properties need to make strategic business decisions involving management of these properties, they will usually call on asset managers. Areas of concern are overall leasing strategy involving rental rates and tenant concessions, in addition to repositioning or redevelopment, tenant mix, managing bulk service contracts.....(more)
    Click Here For This Months Newsletter
]]>Tue, 02 Jan 2024 01:08:00 -0500<![CDATA[What Is CPI and How Is It Used In Commercial Real Estate]]>https://www.charlottenccommercial.com/blogs/post/what-is-cpi-and-how-is-it-used-in-commercial-real-estate
In this issue
  • The CPI Escalation Rental Clause
Putting a CPI (Consumer Price Index) escalation clause in a lease is to make the lease fair to both the tenant and the property owner. A primary benefit of escalation clauses is they help protect against diminishing purchasing power related to inflation. The CPI measures monthly the average change in the prices consumers pay for certain goods and services such as oil and gas, healthcare, food, and housing.....(more)
  • The Industrial Flex Building Investment
A high percentage of speculative low-rise industrial buildings today are flex buildings making them a good investment. One of the most appealing aspects of flex space lies within its customizability. For example, if a tenant wants to increase their office space or warehouse space, they are easily able to do that with flex space due to the reduced improvement costs. A flex building also allows for the tenant to have more choices in the type of space their company needs now and in the future at a more affordable price. Developers are favorable toward the flex building as it will meet the needs of many modern sophisticated industrial building users.......(more)
  • The Conversion Of A Railroad Station
In many areas of the country, railroad stations are being re-awakened and brought back to a beautiful new life. The small town railroad station which had been closed down, boarded up and left to crumble into dust for many years is now being converted to a useful and desirable part of town. The large abandoned terminals which were once the busiest and most accessible buildings in a city are no longer deserted and deteriorating but have been converted to shopping centers, entertainment venues, and hotels. Stations along commuter lines in smaller towns are being used for small cafes, coffee shops, a flower shop and an assorted businesses to take care of the needs of the commuter.....(more)
  • Raw Land For Development
Land investment is much more complex than it was a few years ago. Because of expanded regulation and environmental concerns, the development process is much longer and so more expensive. The time from the initial raw land purchase until final sale of completed homes may be as long as 10 years.....(more)
  • The Single Tenant Market
Investors who can provide the housing that satisfies the needs of the single tenant will stand to profit. We all know that the number of persons living alone has increased. Figures from the census bureau show that households that contain only one person have increased 90% since 1970. There are now more than 20 million people who live alone, more than twice the number of twenty years ago. This trend is expected to continue.....(more)
    Click Here For This Months Newsletter
]]>Fri, 01 Dec 2023 23:45:33 -0500<![CDATA[How Good Planning Helps Vacancies]]>https://www.charlottenccommercial.com/blogs/post/how-good-planning-helps-vacancies
In this issue
  • How Good Planning Helps Vacancies
When an investment property is located in an overbuilt market, the marketing effort must have good planning and direction. Just throwing large amounts of money into advertising can be a waste. Rather than broad advertising, a more direct action is required by keeping the local brokers who specialize in leasing constantly updated about the amenities of a certain property. This may be the best way to make it more marketable. Here are some other ideas:....(more)
  • The Master Lease
When new development is occurring in a market and developers are anxious to sell when the construction is complete, use of a master lease may facilitate a sale before the lease-up period is ended. A master lease is a form of seller guarantee that has several specific goals.......(more)
  • A Land Development Agreement
The acquisition and improvement of land is a large-scale operation and requires large amounts of capital. This has created methods of land acquisition that gives the developer access to and control over a large enough tract to make development economical without requiring an initial outlay of all of the capital necessary to acquire such a tract. From the point of view of the landowner, the disposal of a large tract at a good price may require a formula that will encourage the developer to commit improvement and development money for part of the tract that will build future value into the entire tract. This may be accomplished by the following:....(more)
  • Essential Parking Spaces For Commercial Properties
Parking is not just important at your commercial building or apartment property; it is absolutely crucial for any business. Without it, potential tenants and their customer will reject the building. Parking spaces may be located below, at, or above ground level but wherever located, there must be enough spaces to accommodate the realistic, projectable needs of the particular building.....(more)
    Click Here For This Months Newsletter
]]>Sat, 01 Jul 2023 15:24:22 -0400<![CDATA[How To Finance A New Land Development]]>https://www.charlottenccommercial.com/blogs/post/how-to-finance-a-new-land-development
In this issue
  • How To Finance A New Land Development
When an investor purchases land to build on, the next step is land development and financing. “Land development” cannot be precisely defined; generally, it refers to the physical, legal, and engineering processes needed to convert raw land to land (or lots) on which buildings can be placed....(more)
  • The Self-Storage Facility Investment
One in ten U.S. households now rent a self-storage unit. The growing demand for self-storage in the U.S. is created by people moving (some 40 million people move each year according to U.S. Census data), and by various lifestyle transitions, such as marriage, divorce, retirement, a death in the family, etc. Recent surveys of self-storage companies indicate a positive trend in market demand and occupancy rate. The increased demand for storage space outside the home include the larger number of apartment dwellers who do not have any storage space for their increasing amount of possessions–usually household goods, and outdoor recreational equipment......(more)
  • The Marketing Of A Commercial Building Or Apartment
A new tenant and an investor share the same first impression of a commercial building or an apartment property. That first impression is crucial. Before marketing the property, think about the outside appearance. The “look” affects both tenants and buyers. The following is a checklist of first-impression items that a good property manager must use: ...(more)
  • Owner Requirements For Effective Management/li>
Real estate investments can be set up to generate one or more types of returns: Cash flow to owners (yield or return on investment). Appreciation of owner’s capital (capital appreciation). Shelter of cash flow and/or other income from taxation (tax benefits). Preservation of capital (safety)....(more)
    Click Here For This Months Newsletter
]]>Sat, 01 Apr 2023 15:25:20 -0500<![CDATA[The Cancellation Clause In A Commercial Lease]]>https://www.charlottenccommercial.com/blogs/post/the-cancellation-clause-in-a-commercial-lease
In this issue
  • The Cancellation Clause In A Commercial Lease
Whether a rental market is weak or strong, lease negotiations can be difficult when the landlord wants concessions that are different from the norm. One situation that happens is when the owner of an office building or other commercial property intends to sell when market conditions improve, whether that occurs next year or five years from now. Another is the holder of vacant or underimproved property who plans to develop it whenever market conditions justify. In the meantime, these properties must be leased to generate sufficient cash flow to pay operating costs and debt service. Such an owner will be amenable to giving significant concessions, including a low rental, provided the landlord can cancel the lease during the term...(more)
  • Building On Leased Land
Building on leased land results in a separate ownership of that building and the land. The two owners, one of the land, and one the improvement, come together in one investment parcel. In this situation, the landowner wants someone to develop the land, but still wants to continue in ownership. The developer prefers to lease rather than buy the property. One owner wants the security of owning the land with a good lease to the owner of the improvement. The owner of the building puts up less money since the ownership of land is not part of the expenses in the development....(more)
  • How Adding Value Means Increased Cash Flow
Since the value of a rental property is based directly on the cash return, adding value means increasing cash flow. When small investors set out to increase real estate values, the steps are in upgrading houses, duplexes, triplexes, etc., enhancing the cash flow and therefore increasing equity when the property is sold...(more)
  • Pre-Leasing For Construction Loans
Whether it’s a new office building, industrial warehouse, retail shopping center, or high-rise residential apartment building, investors and lenders increasingly demand to see a substantial portion pre-leased before they are willing to put up construction money. Purely speculative construction projects are rare in today’s real estate market....(more)
  • How Property Management Increases Value
Management of a building is not just handling problems as they arise and renting units, it is making the asset more valuable to the owner by concentrating on every aspect of the property. Some owners of very large income properties still do not take professional property management seriously and fall behind in values...(more)
    Click Here For This Months Newsletter
]]>Wed, 01 Feb 2023 16:55:59 -0500<![CDATA[The Strategic Plan For Land Acquisition]]>https://www.charlottenccommercial.com/blogs/post/the-strategic-plan-for-land-acquisition
In this issue
  • The Strategic Plan For Land Acquisition
​The acquisition and improvement of land is a large-scale operation and requires large amounts of capital. This has created methods of land acquisition that gives the developer access to and control over a large enough tract to make development economical without requiring an initial outlay of all of the capital necessary to acquire such a tract....(more)
  • Understanding A Leased Property Investment
There are real estate investors who specialize in making profits, sometimes big profits from properties that they lease and do not own. This cash flow from a lease can be extremely interesting. Often the lessee making a huge profit has a relatively small cash investment in the property...(more)
  • How High Leverage Is A Benefit With Options
​​​​​​​​​​​​​​​Leverage is the use of borrowed money to control something of value. Real estate investments for many years have afforded the investor some extreme leverage situations. Let’s examine leverage. If double-digit inflation returns, controlling the maximum amount of real estate may be extremely desirable. One way to do that is with an option.....(more)
  • The Future Of Investments
Which way is the right way in real estate investments in 2023t? What is the future in these investments? An answer to these questions can be an interview with an interested professional real estate broker who can act as a real estate investment counselor. Each prospective investor can be interviewed in depth to find out specific needs in an income property. At the same time their needs are being evaluated, the broker will also communicate what benefits are available in various properties and how to identify them....(more)
  • Investment Real Estate Experts
Come to our office when you need professional advice and help in commercial real estate. We are experts in values and knowledge of the entire market in this area. If you have been looking for a certain type of property we probably have the full information on several like it already.....(more)
    Click Here For This Months Newsletter
]]>Tue, 01 Nov 2022 22:33:35 -0500<![CDATA[How To Find More Ways To Increase Commercial Real Estate Investment Income]]>https://www.charlottenccommercial.com/blogs/post/how-to-find-more-ways-to-increase-commercial-real-estate-investment-income
This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue
  • How To Find More Ways To Increase Commercial Real Estate Investment Income
We are certainly all looking for ways to increase income. Sometimes the possibilities for changes are right before us. If you now own a commercial property or an apartment complex, you might try looking at the property with “new eyes” to see if you can spot any changes that could make you some extra rental income....(more)
  • Agreement Between Owner And Developer
The acquisition and improvement of land is a large-scale operation and requires large amounts of capital. This has created methods of land acquisition that gives the developer access to and control over a large enough tract to make development economical without requiring an initial outlay of all of the capital necessary to acquire such a tract. From the point of view of the landowner, the disposal of a large tract at a good price may require a formula that will encourage the developer to commit improvement and development money for part of the tract that will build future value into the entire tract.......(more)
  • ​​​​​Investment Property Inspection
When a buyer makes an offer on an investment property, it is usually only after a thorough inspection of all of the data that is available on the financial records of the building. Certainly, a good physical inspection is also made. Some investors pay more attention to the data than the structure. The physical inspection of the property could be as important or more important than the rents and expenses. By thoroughly inspecting potential investment property, a buyer may be able to......(more)
  • Land For Residential Development
Land investment is much more complex than it was a few years ago. Because of expanded regulation and environmental concerns, the development process is much longer and so more expensive. The time from the initial raw land purchase until final sale of completed homes may be as long as 10 years. Despite this, the purchase of raw land or partially developed land has the prospect for big profits without the burden of active property management......(more)
  • Investment Planning For Everyone
A prospective investor may have a problem getting started with a real estate investment because of the great variety of properties that are out there. They may be fearful that someone will “sell” them something - something that is wrong for them. An answer to these problems can be an interview with an interested professional real estate broker who can act as a real estate investment counselor. Each prospective investor can be interviewed in depth to find out specific needs in an income property. At the same time their needs are being evaluated, the broker will also communicate what benefits are available in various properties and how to identify them.....(more)
    Click Here For This Months Newsletter
]]>Wed, 01 Dec 2021 23:14:44 -0500