299. Determining Price Per Sq. Ft. for Land | Office Hours


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Feb 20 2025 29 mins  

Key Takeaways:

When determining the price per square foot to pay for industrial land for development, survey recent comparable sales in the area to see what the market is paying. Take into account the specific zoning as that can impact pricing.

As a general rule of thumb, you'll want the land cost to be around 20-25% of your total development costs (including hard and soft costs). This can help guide what price per square foot makes sense.

For a 4,000 sq ft commercial space you're looking to lease out, the main marketing strategies suggested are:

Hire a commercial real estate broker to list and market the space

List the space on online marketplaces

Put up a prominent, eye-catching "for lease" sign on the property

When raising capital for commercial real estate projects, the key is to start networking and letting your contacts know you're actively looking for investors, rather than waiting until you have a deal.