Commercial Real Estate Investment/question.

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Question
Good day
What types of commercial land has the highest price fluctuation in periods of real estate market highs and lows.
Are there any types of commercial land that fluctuates more than 20 times times price difference between high and low periods.
For example a piece of land that sells sells for 20,000 in low periods and fluctuates to 400,000 in high periods.

Answer
The price fluctuation of land is not usually directly tied to the "type" of land (and by type, I presume you mean zoning for what it could be used for). There are a huge number of factors that play into valuation. For instance, activity nearby to the property (both positive and negative) can have a measurable impact. As with any commercial real estate transaction, and particularly if you're considering raw land acquisition for spec purposes, be sure to do as much due diligence and investigate that you can. Best of luck.

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Mike Fortunato

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Can answer questions on all aspects of commercial real estate investment & development.

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25 years of real estate investing & development. Own & operate a commercial real estate company in southern California.

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IREM; CAR; NAR; BOMA

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BOMA educational course

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Licensed California real estate broker

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