Empty Real Estate is Lost Income
Posted on March 27, 2009
Filed Under General | 1 Comment
Near where my husband and I live, there is an empty piece of property that takes up probably about four residential lots. The property is completely empty, no buildings whatsoever, and surrounded by a temporary fence.
My husband lived in this neighborhood for several years before I met him, so I asked him what used to be there. He said it was a nursery that had been there for many years, until the building was torn down a few years ago.
I have always wondered who owns the property — the owners of the nursery, or someone else? — and why they have not done anything else with the land. It’s in a neighborhood where real estate is pretty valuable, and it’s the equivalent of about four residential lots, so it would bring quite a pretty penny if put on the market. It is probably also zoned as commercial real estate, which means another business could go in there too.
Unfortunately, as an empty piece of property, the loss of potential income is enormous. If the four lots were used to put in four duplexes (which in this neighborhood sell for $500,000 per unit), the property would bring $4 million (for 8 units) minus the construction costs. Even if the owners simply put another business in, they would at least be generating income from that business.
Not all of us have millions of dollars worth of property just sitting around, but many of us have some sort of income potential that we are overlooking. Not taking advantage of it can cost you, even if you don’t actually realize what you are missing. What assets do you have that could be turned into income?
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The commercial real estate market is pretty tough right now. There is so much vacancy, building does not make much sense, in many cases right now. Nurseries have been hit pretty hard, because they are very much tied to the construction industry, which is still in the garbage can.
I am curious where this property is.
Would you mind dropping me an email with the address?
Thank you!