Selling Commercial Land in Kansas (The Easy Way)

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Selling Commercial Land in Kansas (The Easy Way)

Bart Waldon

With over 46.4 million acres spanning Kansas’ plains and rolling hills, the Wheat State maintains a thriving real estate market as development expands from major metros into surrounding rural communities. However, efficiently liquidating commercial lands requires strategic approaches lifting typical transaction burdens.

Simple enhancements refining preparedness, partner selectivity and deal structure flexibility expedite lucrative yet low-friction commercial site sell-offs meeting seller financial needs while offering buyers equitable growth upsides.

Steps to Get Kansas Commercial Lands Buyer-Ready

Attempting to offload raw development acreage easily starts with showcasing site potential positively. Critical moves include:

Zoning Confirmations – Verify lands are commercially approved with county authorities aligned to buyer intents from office spaces to retail builds. Seek any reasonable zoning variances unlocking value.

Utility Checks – Certify accessibility to fundamental electric, water and sewer/septic infrastructure at parcel borders minimally to enable builds.

Environmental – Perform phase 1 tests uncovering risks needing removals for commercial lending compliance. Conduct asbestos, lead, mold or oil tank surveys associated with any existing buildings conveyed.

Parcel Splits – Consider carveouts selling portions while retaining parts for buffer space, sentimental reason or rental/farming income Smoothens deals.

Title Correction – Fix any co-ownership disputes or recorded easements potentially encumbering commercial usages long run preventing tenant lease hurdles eventually.

Putting sites in best positions welcomes serious buyers conducting fewer corrections post-transaction. Makes sales easier.

Pricing Kansas Commercial Land Assets Competitively

Beyond physical enhancements, setting alluring yet realistic asking prices sells land quicker. Commercial land essentially transfers at values offsetting buyer building costs plus projected business profitability over investment time horizons. Typically, compelling offer pricing reflects:

Construction Costs – Tally projected costs building envisioned commercial spaces suiting zoning allowances related to site parameters and area builder fee norms.

Profit Potential – Estimate net operating incomes (NOIs) similar commercial buildings located proximately with comparable highway, neighborhood or tourism traffic flows could generate for buyers based on market rents and expense ratios.

Apply suitable capitalization rates used locally across similar commercial categories like retail, mixed-use, self-storage or office suites. This calculates property investment value making sense for buyers who must recoup land purchase fixed costs before generating owner profits thereafter.

If selling agriculturally-zoned lands, benchmark crop yield potentials and water rights instead to model values Crop buyers may pay and still profit long term from operations.

Land comprising certain commercial value beyond base acreage pricing according to development rights warrants strategic marketing which further motivates buyers seeing growth-focused financial upsides instead of raw lands passively listed.

Creating Win-Win Terms Attracting Serious Buyers

Rather than hoping buyers materialize accepting rigid sale terms unable accommodate unique needs of commercial entity purchasers, savvy land sellers structure deals benefiting both parties through tailored flexibility provisions including:

Seller Financing – Carrying back 20-30% loan portions boosts buyer equity commitment while increasing seller risk-adjusted returns atop partial land value gains via interest payments.

Gradual Closings – Closing deals in phases on 10-30 acre sections annually enables faster seller cash realizations while buyers tap commercial demand supporting each project completion to fund next land portion buys.

Sale-Leasebacks – Sellers lease back 30-50% of completed buildings to operate businesses boosting property values for buyers via reliable tenants contractually committed long term.

Such accommodations allow buyers to move remaining capital toward construction instead of over-burdening land payments upfront. Sellers partially participate in commercial projects they seeded through equitable land transfers. Win-win terms expedite complex commercial site sales satisfying all.

Finding Qualified Commercial Land Buyers More Quickly

Rather than waiting indefinitely for qualified commercial developers discovering niche property listings passively, adjusting marketing approaches helps sellers encounter better aligned buyers faster by:

Maximizing Reach 

Advertise online and offline across specialized commercial, business, design and construction channels where value-adding entity decisionmakers concentrate around targeted buyer categories from warehouse firms to hotel builders seeking land based on entity requirements.

Highlighting Returns 

Promote achievable unlevered IRRs commercial projects could generate for developers based on conservative revenue assumptions and standard building expense loads for envisioned property types suiting acreage attributes.

Preparing Collateral 

Assemble visuals, plat maps, environmental reports, traffic analyses and zoning details sought by serious commercial real estate entities across info-packed websites presented professionally promoting site potentials while saving buyer expense conducting redundant due diligence upfront.

Traveling Roadshows 

Attend mainland China, Korea, Japan and Singapore investor events popular amongst capital allocators funding US developers. Pitch land deals directly overseas more likely engaging equity to fuel ultimate Kansas commercial property materializations.

Proactively moving beyond MLS realtor dependencies builds access pathways better connecting relevant commercial land buyers and sellers pursuing deals on equitable terms beyond one-off opportunists randomly emerging locally at fortunate times.

Casting wider buyer nets also ensures awaiting entities with means to deliver projects land ultimately requires. Attract big vision partners through assertive pursuits.

Key Takeaways on Selling Kansas Commercial Land

Critical keys expediting lucrative yet smooth commercial Kansas land sales include:

  • Making acreage buyer-ready remedying any title disputes, usage limitations, environmental risks or access constraints upfront rather than leaving issues for buyers discovering later stalling deals.
  • Pricing lands competitively factoring zoning clearances, adjacent retail/office rents and construction feasibility realities per acre instead of misguided straight land comp heuristics giving incomplete pictures to serious commercial entities .
  • Structuring creative terms like seller financing portions, gradual closings meeting buyer project pace needs and sale-leasebacks keeping properties occupied, which collectively motivate buyers and sellers concluding complex deals.
  • Casting wider buyer net exposures accelerating qualified lead constituencies because relying solely on local relayed referrals risks random parties misaligned with niche land opportunities.

By improving preparedness, creative deal flexibility and enhanced buyer exposures, Kansas commercial landowners convert assets into liquidity meeting financial needs more quickly while transferring sites to capable stewards visualizing growth upsides. Streamline land deals through win-win enhancements.

Final Thoughts

Selling Kansas commercial real estate hassle-free ultimately requires aligned partnerships between financially motivated sellers seeking liquidity events meeting current economic needs and growth-focused buyers possessing capital and construction capabilities realizing property potentials long term. Rather than stretching for top-dollar windfalls from unlikely opportunists, pragmatic enhancements entailing buyer prep touches, equitable deal flexibility and proactive buyer sourcing connections collectively stack odds establishing win-win commercial land deals satisfying both investor risk/reward profiles. Listing raw land passively risks unpredictable outcomes while assertive financial engineering and buyer marketing begets lucrative commerce with reliable entities valuing sites appropriately. Enable smooth yet profitable Kansas commercial land sale exits.

Frequently Asked Questions (FAQs)

What steps potentially expedite closing commercial land sales most?

Ensuring clean titles, checking development-friendly zonings, and certifying accessibility to fundamental utilities like electric, water and sewer helping buyers avoid redundancies impose the smallest seller burdens while alleviating major contingencies jeopardizing deals later for interested parties unwilling to inherit fix costs unknown initially.

What risks do commercial buyers fear most around land sites?

Lingering environmental risks like underground oil tanks or asbestos in existing buildings that could block construction permitting until costly removals occur, title disputes from heirs claiming parcel ownership rights years later, and zoning classification changes preventing intended commercial activity like mixed-use multifamily projects.

What motivated seller deal structures potentially attract commercial developers?

Carrying back financing portions retaining interest gains, closing sales gradually meeting construction pace realities by parcel phases, and leasebacks to sellers securing reliable tenants easing buyer property value worries can sufficiently incentivize purchasers wary of raw land risks.

What platforms effectively connect commercial land investors and sellers?

While mainstream residential listings sites gather some visibility, niche commercial developer forums, construction bid boards, municipal economic development channels and foreign investor convenings better target decision-maker concentrations around capital allocators like REITs, builders and global funds seeking land asset entry points.

How might pricing misperceptions stall land deals unintentionally?

Valuing on simple acreage alone disconnected from achievable rental income or construction cost & permitting realities in submarkets can completely distort deal dynamics causing confusion between ask and offer numbers. Seek appraisals aligning both data facets.

About The Author

Bart Waldon

Bart, co-founder of Land Boss with wife Dallas Waldon, boasts over half a decade in real estate. With 100+ successful land transactions nationwide, his expertise and hands-on approach solidify Land Boss as a leading player in land investment.


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