What is a Commercial Acre in Real Estate Development?
I've noticed many people get confused about commercial acres versus standard acres when looking at property listings. Let me clear this up for you and explain why this distinction matters for your real estate decisions.
Commercial Acre: A commercial acre refers to the usable portion of land that remains after subtracting space allocated for public infrastructure like streets, sidewalks, and curbs in a newly subdivided property. This measurement is typically smaller than a standard acre and represents the actual developable area available for commercial use.
Breaking Down the Commercial Acre
Think of a commercial acre like a pizza where someone already took a few slices - what's left is what you can actually use. The missing pieces represent the space taken up by roads, sidewalks, and other necessary infrastructure.
A standard acre contains 43,560 square feet, but a commercial acre typically ends up being around 32,670 square feet - roughly 75% of a standard acre. Here's what gets subtracted:
Street rights-of-way
Sidewalks and curbs
Utility easements
Required setbacks
Practical Applications in Real Estate Development
Commercial acres matter most during the planning phase of development. You'll need to consider:
Building footprint maximization
Parking requirements
Loading dock space
Landscaping requirements
For example, if you're planning a retail space, you might find that a one commercial acre lot offers enough space for a 10,000-square-foot building plus required parking, while a standard acre could accommodate more.
Common Misconceptions and FAQs
Q: Is a commercial acre always smaller than a standard acre?
Yes, a commercial acre will always be smaller than a standard acre since it excludes infrastructure space.
Q: Does the commercial acre size vary by location?
Yes, local zoning laws and infrastructure requirements can affect the final usable space.
Q: Can I calculate the commercial acres myself?
While possible, it's best to work with surveyors who understand local requirements.
Related Real Estate Concepts
Several other measurements work hand-in-hand with commercial acres:
Floor Area Ratio (FAR): Determines how much building space you can construct relative to lot size Lot Coverage: The percentage of the lot that can be covered by buildings Setback Requirements: Minimum distances buildings must be from property lines
Commercial Acre Considerations by Property Type
Different property types have unique space needs:
Retail: Focus on parking and storefront visibility Office: Employee parking and building height restrictions Industrial: Loading docks and truck turning radius Mixed-Use: Balance between various space requirements
Regional Variations and Requirements
Urban areas often have stricter requirements than suburban locations. Cities might require:
Wider sidewalks
Bike lanes
More extensive landscaping
Public transportation accommodations
Future Implications and Trends
Modern development practices are shifting how we use commercial acres. New considerations include:
Electric vehicle charging stations
Green space requirements
Flexible outdoor spaces
Autonomous vehicle accommodations
Making Informed Decisions
Before purchasing commercial property, consider:
Getting a professional survey
Reviewing local zoning codes
Checking infrastructure requirements
Planning for future expansion needs
Conclusion
Understanding commercial acres helps you make better-informed property decisions. The difference between standard and commercial acres can significantly impact your development potential. Bellhaven Real Estate's commercial property experts can guide you through site selection and development planning, making sure you get the most value from your investment.