What does it mean to have a “shovel ready” property?
- A commercial site that is entitled/permitted and ready to be developed
- All due diligence has been completed:
- Environmental studies and soil analysis
- Environmental permits
- Infrastructure
- Zoning
- The site is compliant with local, state and federal regulations
- Title has been cleared to expedite the transfer of ownership
- Site is construction ready
While getting a large property shovel ready can require a significant investment in both capital and time, the benefits to the seller and the buyer both outweigh any disadvantages.
Why is it Important for land to be shovel ready?
- Differentiates your property from other landowners seeking to list and market their property in a competitive commercial real estate market
- Reduces “time-to-business” – businesses and builders looking to ramp up quickly and establish their presence in the market want to hit the ground running
- Reduces the time it takes prospective buyers to get to market
- Helps prospective buyers reduce up-front costs and mitigate risk
- Attempting to market a property that is not shovel ready can be a significant barrier to complete a sale
At SVN Cornerstone, we have several properties on the market that are shovel ready, including, Hayford Business Park, the Commerce Park at West Plains, and West 21st Ave, Airway Heights.
White Rd is an example of a current land offering that is not yet shovel ready, and is therefore priced accordingly. As an owner, by positioning land to be shovel ready, you can make the land more competitive to achieve the best value. This also provides developers a justified return and feasibility can be accelerated.
Omar Sadaoui is an Associate Advisor with SVN Cornerstone. Omar has several years of construction and real estate experience, and specializes in the acquisition and disposition of Industrial, Retail, Land, and Development investments.