How do you assess the value of a large suburban residential and mixed use development?
When assessing the best course of action for a development, it’s important to know what the development may be competing with. LandPath examines several factors including how many approved lots (zoned, titled, platted), and vacant developed lots (with streets, sewers, lights, etc) are available in the same market?
LandPath defines the competitive geographic area as the properties that would be competing for the same homebuyer. Then we survey the competition within those boundaries and plot the supply map. For example, in Shorewood, Illinois, there is an overabundance of supply of both improved and approved lots at the current time.
It is commonly believed that the majority of the improved vacant lots will be used before anyone begins to build improvements on the approved and entitled land.
For more insights, download the free LandPath Tool Kit.
How to Assemble a Competitive Inventory of Vacant Lots
- The subject property has 91 vacant developed lots available.
- The target market area has a total of 2,053 improved vacant developed lots available.
- The subject property represents 4.7% of the total vacant developed lots available in the target market area.
- In addition to the improved vacant lots available, there are an additional 2,825 approved future lots that have all of their entitlements in place.