Commercial real estate is an investment, and it is important to treat it as such. As a property owner, you might be looking for ways to improve your property and those to your values. At the same time, there are some off-site improvements you might want to perform that have some additional requirements. According to Jonathan Rooks, it is not unusual for a team to identify the perfect land development site only to realize that there are additional requirements that drastically inflate the cost of the project. There are several ways to mitigate these obstacles to streamline the planning process.
Street Improvements Require a Traffic Impact Analysis
If you are interested in making street improvements, you may be required to undergo a traffic analysis. This is important because the government wants to know how the Improvement is going to impact traffic flow. The exact requirements can vary significantly from project to project, depending on how traffic might be impacted. If you are interested in making a street Improvement, there are some additional modifications you might need to make. For example, you might need to add turn lanes, widen the road, install a medium, and add land for acceleration and deceleration. Traffic signals might also need to be changed, and intersections may have to be adjusted.
The Addition of a Traffic Signal
If the public believes that you need to add a traffic signal, it could be expensive. According to Jonathan Rooks, it is not unusual for new traffic signals for a street corner to cost several hundred thousand dollars. In some cases, the project may have multiple corners that require traffic signals, quickly driving up the cost. These expenses stem from steel poles, mast arms, and the signal itself. Particularly with current supply chain difficulties, you might realize they are back-ordered for more than a year.
Relocating Utility Lines
Depending on the size and scope of your project, you might be required to relocate your utility lines. Overhead utility lines are generally less expensive, but depending on the improvements you are making, you might be required to move these utility lines underground. Relocating overhead utilities can be incredibly expensive, and it requires you to work with utility providers. Utility providers have their own priorities, and they could delay your project if they are busy focusing on other issues. It is not unusual for this approval process to take more than a year, so it could delay your project.
Be Proactive About Potential Off-Site Improvements
According to Jonathan Rooks, it is important to be proactive about potential off-site improvements. You need to define the scope of work ahead of time, making sure the government is aware of what you want to do. Then, you should negotiate with developers and the local government to streamline the process from start to finish. Finally, there are some situations where you might not have to handle all of these issues on your own. If you are willing to contribute an “in lieu” fee, you can let the city handle the upgrades on its own timeline.