Commercial property investment in the US dropped by 46 percent in 2020, according to the World Property Journal. This is largely because of the uncertainty of needing retail and office space as online shopping and telecommuting are on the rise. Despite this, many analysts expect an economic rebound by the year 2021. Hence, it is best to invest in commercial property now while demand is low and recovery is on the way. That practically guarantees a profit once things return to normalcy. If you have never developed commercial property in Oregon before, here is a simple walkthrough to help you out.
Making Your Development Plan
To develop your property, you need to plan your finances and other resources. Making a business plan is vital for applying for financing when needed. Remember to brush up on your city’s zones and zoning requirements. Commonly, general commercial zones are your best option to plan for. This is because they’re parcelled to be fit for a wide range of commercial activities. If you intend for the property to be more of a compact, specialized facility, downtown commercial zones would be better.
Consider consulting your local business development center if you need further help in drafting your business plan. They can also do pre-application screenings of your proposal. This will determine how feasible your proposal is. You should include a sketch and description of the proposed development in the draft. This will make it more informative for the reviewers. Once reviewed, they will tell you about the policies of the public agencies you will be working with, as well as any requirements you may have missed.
Discussing The Development With Professionals
Your property development will be carried out by several professionals. This can include but is not necessarily limited to, civil engineers, landscape designers, land clearing firms, architects, and licensed surveyors. Such professionals can work on your plan design to ensure that it meets development codes while still adhering to your needs and specifications. First, surveyors will measure and mark your property boundaries and map it out for clearing and construction. Land surveys are one of the first things required by the State of Oregon for subdivision applications.
Then, the land clearing firm will clear it of foliage and obstacles to make it accommodate construction and make it more accessible. Remember that clearing land in Oregon comes with several requirements as these tend to vary from city to city. It is important to understand the guidelines for removing trees in Portland, for example. Architects will optimize and finalize your vision for the design, and Civil Engineers will carry out this vision during construction. Finally, landscape designers will make the property look more inviting to potential customers.
Submission Of Application And Start of Construction
Finally, it’s time to submit your application to your local Planning Department. Make sure you have all the required documentation and permits, as well as the application fees as they are needed upfront. State law dictates that cities have a maximum of 30 days to decide whether your application is up to specifications. Another 120 days are given for them to either accept or reject your application. Once the application is accepted, you may start constructing your commercial property.
You are advised to request inspections at each stage of the construction. These stages are infrastructure, electrical, plumbing, and mechanical. Infrastructure installations are of particular importance. They must be inspected by the City Engineer as soon as they are erected to test for structural soundness. When he and the City Council have approved of the infrastructure, subdivisions may be recorded. Final inspections are to be carried out by the city building inspector.
Developing commercial property, especially in this day and age, comes with a hefty amount of risk. But you can say that about any other investment. Even if things take longer to go back to normal, you can rest assured that you will get a return eventually. When the recovery finally happens, you can expect to ride the momentum of an economic boom the likes of which may never have seen before.