There are many factors and decisions that need to be considered before buying land for a new business building. The right plot of land can help ensure success and growth in the years ahead while making an unwise choice can cripple even the most promising businesses.
Before purchasing commercial land, you should evaluate:
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Zoning and land use regulations
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Wetlands and environmental restrictions
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Soil conditions and topography
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Utility access and infrastructure
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Site access and traffic flow
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Total development costs beyond the land price
Each of these factors directly affects your construction timeline, overall budget, and long-term success.
At ACE Building Service, we work with Wisconsin business owners during the pre-construction phase to help evaluate commercial property and identify potential challenges before land is purchased.
Below, we outline five critical questions to ask before buying land for your new business, so you can move forward with clarity and confidence.
We also provide a downloadable Commercial Land Due Diligence Checklist to help you stay organized throughout the evaluation process. Download it, print it, and make sure you don’t overlook any details before making one of the biggest investments in your business.H2: 1) Is the Land a Wetland?
1) Is the Land a Wetland?
The last thing you want to do is purchase land only to find out later you can’t build because of a wetland. You may be asking yourself: What is a wetland, and how could it impact the vision for my new business building?
Wetlands are areas where water covers the soil or is near the top of the soil either all year or during certain seasons throughout the year. A Wetland functions as its own ecosystem, supporting a variety of plant and animal life. Many governmental entities have regulations and restrictions to protect these ecosystems that impact what (if anything) can be built on a designated wetland. These restrictions are also put in place for many sociological reasons, including maintaining natural water purity and controlling flooding.
The Wisconsin Department of Natural Resources (DNR) provides the information you need about Wisconsin wetlands, including wetland inventory maps of Wisconsin wetlands, wetland mapping methods, and wetland delineation.
If you have your heart set on a property with a wetland, hiring a professional to perform a wetland delineation can tell you exactly where the wetland is and determine where, if at all, you can build on that particular property.
2) How Is the Existing Contour of the Land?
It’s also important to consider any elevation changes on the land, as this can impact excavation requirements. Performing a contour survey, or topography survey, can give you a complete insight into any valleys or hills present on the land and its surrounding areas, which is a great way to gauge how much work needs to be done on the physical landscape of the land before construction begins.
Does the land need to be leveled? Do the adjacent properties favor water drainage? Will I need to add proper drainage by adding or removing additional ground fill? How much will this cost, and how will it affect the overall project plan and budget? A contour survey is a good starting point to begin answering these questions.
Did you know A.C.E. Building Service offers a broad range of surveying and land development services to public and private clients in Northeastern Wisconsin? Learn more.
Pro Tip: Work with a local, trusted contractor before purchasing land. They will help you identify hidden development costs, evaluate buildability, optimize site layout, and prevent costly mistakes. At ACE Building Service, we guide Wisconsin business owners through site evaluation and pre-construction planning to ensure the land you choose supports your long-term goals.
3) What Are the Zoning Codes and Covenant Requirements Attached to the Land?
You may have heard of the term “zoning” before, but what does it actually mean for your project?
Local municipalities have designated areas within townships, villages, and cities that define what can be built and where. These zones are meant to help control how areas are developed and allow for communities that are developed in an intentional and logical manner. Typical zoning districts consist of parkland, residential, business, industrial, and commercial designations.
Zoning codes outline what type of structure can be built on a specific parcel of land. They regulate:
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Permitted building uses
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Building height and dimensions
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Setback requirements
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Parking minimums
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Signage restrictions
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Outdoor storage allowances
In some cases, your intended business use may not be automatically permitted under the current zoning designation. This is where a Conditional Use Permit (CUP) comes into play. A conditional use allows a property to be used in a way that is not typically permitted within that zoning district, but may be approved by local officials if certain conditions are met. Securing a conditional use permit can add time and complexity to the approval process, so it’s important to understand this early in your land evaluation.
Restrictive Covenants
In addition to zoning codes, you’ll also need to review any restrictive covenants attached to the property.
Covenants are legal restrictions and obligations placed on a commercial or residential property that must be followed by the owner. These are often created to preserve the value and appearance of surrounding properties. They may include requirements or limitations related to:
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Exterior materials and colors
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Architectural design standards
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Fencing
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Landscaping
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Building placement
Understanding zoning classifications, conditional use requirements, and covenant restrictions (and knowing whether city officials are likely to approve your project) can prevent costly surprises after purchasing land for your new business building.
At A.C.E. Building Service, we’ve been building in the Manitowoc area since 1963. Our team understands the ins and outs of local zoning regulations, permitting processes, and municipal requirements throughout the Lakeshore region. Involving an experienced local contractor early can help streamline approvals, avoid costly delays, and identify potential roadblocks before they impact your project.
4) Is the Location and Landscape of the Land Conducive to Business Needs?
It’s important to know if the location and landscape of a plot of land will be conducive to your business needs, functions, and logistics. Developing a schematic layout of the proposed new business building is a great way to ensure the land you’re purchasing is appropriate for the needs of your business today as well as future growth potential.
Your business’s overall operations and building needs will help determine what you should include in a schematic layout. The following are a few common things to consider:
- Location of departments
- Number of employees and parking requirements
- How departments will work together
- Required loading dock quantities and locations
- Building dimensions
- Overhead doors and access points
- Traffic flow patterns and relationship to your building
Click here to learn about 5 inconspicuous factors that can influence the overall cost of your commercial construction project. At A.C.E. Building service, we offer complete cost transparency, so you’re never in the dark when it comes to the cost of your project.
5) Will Financing Affect the Construction of My New Building?
In addition to conventional financing, other options may be available to prospective builders. There may be business loan programs, local, state, or federal grants, Tax Increment Financing (TIF) or other incentives offered to new builds or expansion projects. If you realize purchasing land isn’t the right fit for your business, a build-to-lease option may be worth exploring.
If you’re not sure where to begin, your local municipality, lender, or design/build contractor are all great places to start.
If you’ve never gone through a construction project before, make sure to use the resources available to fully understand how commercial loans are structured, how long your project will take to build, and what other considerations you may need to give but might not be aware of before you begin building.
Many banks require you to provide a budget or firm construction proposal before they will offer a pre-approval for a construction loan.. Working with a trusted building contractor like A.C.E. Building Service can help you understand the full scope of your project, including land restrictions and requirements, helping you create the most accurate project plan and budget.
A.C.E. Building Service is Your Trusted Commercial Building Contractor
At A.C.E. Building Service, we proudly offer commercial and industrial preconstruction services, including insight into permitting and zoning requirements, projected budgeting, preliminary topographic and boundary surveys, and more. Our team is here to provide the extra help and guidance needed to answer the above questions, so you can feel confident knowing you're investing in the best land for your new business building.
We also provide comprehensive design-build contractor services, making us your one-stop commercial and industrial builder for your facility needs. We are proud to be an industry-leading Butler Builder® for over 50 years, providing our customers with fast, affordable, and versatile pre-engineered metal building solutions. From concept to construction, we are your trusted partner with you every step of the way.
Schedule a consultation with us today. We would love to hear about your future project and discuss how we can help with our award-winning preconstruction and construction services.
