Part 3: What makes Real Estate Land, Special use and Hybrid
4. land Real Estate
Real estate within a specific boundary without the buildings = land real estate.
Examples Of Land Real Estate:
- Empty plots
This type of land real estate usually encompasses residential and commercial real estate zones where the actual property and infrastructure has not been developed yet.
Specific portions of farmland can also be referred to as being a plot
The term ‘plot’ will in most cases foreshadow the fact that there is the intention for development on the land at a future date.
Zoning laws will influence what can and cannot be built on the plot.
A form of land real estate which has the primary objective of producing agricultural products and services.
- Early developed, Underdeveloped and Re-developed land.
This is land real estate that in some form or the other needs investment before being available for use:
Early developed real estate is in a state of current development with the intention of completion and use.
Underdeveloped real estate was real estate that entered early development but was never concluded. This type of real estate can a later state re-enter the early development stage if refinanced with the intention of completion. It is also possible that this form of real estate will be sold as-is for another party to put back into the early development stage or to be re-developed.
Re-developed real estate comes in 2 forms, it may have been underdeveloped land that had the initial idea scrapped for a new development project or it may be once completed real estate such as commercial or residential that for some reason or another will be scrapped for another purpose.
What Makes Land Real Estate Valuable
For land real estate, the influence on value in regards to location is a cross between the intended use of the land by the buyer and the location opportunities for the area. as such location for land can potentially be dependent on the location factors found in residential, commercial, industrial and special use real estate.
An individual looking to build a residential property would look for a location that offers the optimal residential location benefits stated above as would individuals who want to utilize commercial, industrial or special-use structures.
- Development rights
The versatility of the land is another prospective value factor especially for individuals looking to purchase real estate as an investment.
Development rights influence what category and type of real estate can be built in a specific area.
Some locations will only allow the development of single-family residential real estate and some only apartment complex commercial properties. The fewer development restrictions the land has, the more opportunities a potential investor will have; which will increase the value of the property.
This factor has less influence on individuals who simply want the property for personal use.
5. Special Use Real Estate
Property that is created, maintained and used for a very niche purpose which cannot be easily converted to use for another purpose is referred to as a special use real estate.
This title also applies for real estate that is placed under specific protection or restrictions due to specific reasons,
Examples Of Special Use Real Estate
- Havens (Religion centers, Wildlife conservation areas, assisted living areas)
- Recreational (Sports stadiums, theatres, amusement park)
- State property (railway stations, firehouses, refineries )
What Makes Special Use Real Estate Valuable
Special use of real estate has very niche requirements when it comes to ascertaining value.
With regards to location, a wildlife conservation area could have high value as a result of a single specific endangered animal or flora.
A fire station values easy access to as much area as possible within its territory.
Sports stadiums value wide-open areas for parking and seating areas.
- Property design and infrastructure
The other value factor for special use property comes as a result of how the property was already used and how difficult it would be to repurpose the property if it were made vacant.
A single-family home, for example, wouldn’t need a lot of effort to convert into a form of commercial property like an office or another form of residential property like a multi-unit property.
On the other hand, a special use property like a cemetery is near impossible to convert into anything else so is the case for a stadium or amusement park.
This is why In most cases if the endeavors of a special use property fail; the property is left for years if not forever. It would take a huge investment to convert it to anything else.
6. Hybrid (mixed-use) Real Estate
These structures take advantage of zoning permits which would have allowed them, for example, to build either a form of residential, commercial or special use on the same zoning boundary and instead decide to make use of the potential versatility by building a cross-breed structure that does both.
A location like Celebration Centre which has special use facilities like a church and sports area while also having commercial properties within the same area can be considered hybrid real estate.
Hybrid real estate is typically only desired by real estate investors with both the finances and desire to venture into a cross bread venture.
What Makes Hybrid Real Estate Valuable
For investors, the versatile of the property as to the exact zoning rights available within the boundary will influence the value of the property.
Commercial and residential zoning permits with more permission for various property types for each category are typically the most valued as they offer a wide array of opportunities for the investor.
Special use real estate hybrids are typically more restrictive as it is hard and expensive to alter a special use property unless you plan to use it as is while developing the other hybrid aspect of the property.
- Location and size
If a property has hybrid permits but lacks the necessary location and size to make use of both properties simultaneously it is closer to versatile land real estate than potential hybrid real estate.
The key aspect of hybrid real estate is that you can do multiple options simultaneously. Such as having residential and commercial properties operating at the same time not that you can build residential or commercial properties.
Do the requirements of residential property such as being close to desired locations intersect with the requirements of commercial property such as having enough space for adequate parking.