Wednesday, October 7, 2009

"Entitlement Preservation" – A New Paradigm

The time to secure Entitlement Rights is NOW. Where land owners, investment groups, developers and builders have traditionally focused on the multi-faceted process of coordination of land use entitlements through the local, state and federal agencies from vacant land to final completion of a residential community, Industrial or Retail Center, these groups are now beginning to shift the focus to "Preserving and Maintaining" the existing entitlements to extend the opportunity for future Development.

Numerous projects throughout Florida, and the US for that matter, are idle after expensive entitlement processes were undertaken and now could be lost if actions are not taken. While seemingly counter-intuitive at this time, steps to secure some type of Entitlement Preservation should be taken before the land values are depreciated further -- caused by the loss of entitlement rights. The cost to secure versus the “cost” associated with diminishment in value due to loss of entitlements provides an excellent return on cost invested.

It’s an excellent time to speak with a Land Use professional. If you have any questions regarding your project or real estate investment, please feel free to contact BCF Management Group, LLC and we will evaluate the situation. Each property holds varying entitlements and therefore different values, you should be aware of all the issues that would provide you with the highest and best use.