For many companies, an essential part of conducting business is having the right location for factors such as foot traffic or manufacturing facilities. Business owners in Harris County typically negotiate to find the right commercial real estate to give them a competitive edge. It is important for businesses to take into consideration how the space will benefit the company and how it will affect their bottom line. A booming trend in Central Texas is to purchase small tracts of land.
According to a spokesman for the Texas Realtors Association, there has been a nearly 100 percent increase in the amount of land purchases over the last decade. Several factors are driving that growth, from development opportunities for investors to companies that need the space for operations. When it comes to land sales, the smaller tracts in Central Texas have become the most popular.
Sales that are defined as small land purchases include plots of less than 200 acres, though 500 to 8,000 acres qualifies for the category in West Texas. The Texas Association of Realtors reported that in 2013, there were nearly 1,400 small land purchases in the Central Texas region, which includes Austin and Waco. That number accounts for more than 30 percent of all such purchases in the state. Across Texas, the median size of the sale was 20 acres at $4,849 an acre. In Central Texas, those medians were 21 acres at $6,900 an acre.
Anytime a business is considering purchasing land or commercial space, it is important to consult an attorney regarding the transaction. A lawyer can help ensure that the negotiations occur in the best interest of the company and mitigate the risk of future contract disputes or other litigation.
Source: Austin Business Journal, “Central Texas leads state in small land transactions, Realtors’ report shows,” Jan Buchholz, June 3, 2014