This is a whole different animal than residential real estate. If you’re talking about land the thing to remember is that land isn’t worth anything to anyone until somebody is ready to build.
Here are some questions to ask about retail land:
Zoning on the site – and how those zoning controls affect development for that site.
The availability of utilities
Public improvements (streets, sidewalks, traffic signals)
Applicable bonds or assessments to pay for those improvements
Traffic exposure and traffic patterns
Competition (how many other vacant sites nearby)
Pattern/Rate of growth in this area
Type of businesses nearby
Is Wal-Mart coming to town any time soon
Local residential growth patterns
Really, trying to figure out vacant land – especially commercial land – involves so many considerations that the average residential investor-type is going to be completely in over their head. It’s still possible to make a buck but it involves a lot more luck and trust in the broker’s opinion. Personally, I wouldn’t recommend it to the average rookie investor-type. Fortunes are won and lost on land deals.
Not to come across as self-serving, but this kind of investment is where it starts to make some economic sense to get an appraisal with a detailed market analysis and highest/best use analysis from a knowledgable commercial appraiser.
