Partially developed and potentially developable vacant properties sit idle in increasing volumes as demand in the residential and commercial land markets has waned. "Available" and "Build to Suit" signs appear everywhere in open fields and on vacant city lots.
The once-envisioned new subdivision, lays as barren earth, scarred by excavation in readiness for roads and sewer but stalled in suspended animation because of the owner's reluctance to invest further or the developer's failure to acquire or satisfy his construction financing.
With no solid evidence of a rebound in the real estate economy visible, what shall the owners of the vacant lands do with them?
Those owners continue to incur the expenses of taxes, maintenance and insurance – if not also debt service or lease payments. It is time to spread the word about making some productive use of these stilted properties, particularly to the growing number of new and distant owners that have purchased the properties at foreclosure sales and other bulk asset liquidations.
In addition to potentially generating present revenue, there is a significant long-term economic benefit from introducing activity to the property. Active use of the land makes the property less of an eyesore, potentially avoiding the attachment of a tarnished reputation and stigma as "unwanted" property, a stigma that can seriously impair marketability in the future.
There are many uses that are legally permissible, even encouraged under the law, for vacant or partially developed lands.
If the old family farm platted for a subdivision hasn't been built out, the original farmhouse or pasture can perhaps be rented. Leasing the property in its present condition not only brings a modest income stream, but may decrease liability insurance costs, and decrease risks of squatter intrusion, theft and vandalism.
The owner gains a security guard who pays to be there. Commercial sites may be leased for storage, RV or heavy equipment parking areas, or other uses which bring a similarly beneficial human presence to the location.
If bare land grows grass, the grass can be harvested for hay – even if it's not of feed quality, it can be sold or stored for use on public or private properties in erosion control. Not all land would yield enough to generate the modest $150 per acre in annual lease payments for hay farming, but you might get the grass cut and hauled for free, which then keeps you in compliance with fire ordinances at no cost to yourself (for example, look at Clark County Code Provisions 15.12.109.5 and 15.13.050.) Forested lands could also be selectively logged, or perhaps leased for woodcutting purposes.
Urban properties should be cleared of blight for the same reasons. Most building materials have salvage value. In fact, the market for reclaimed materials is growing as recycling on a commercial level gains in popularity, and as the use of recycled materials in green building is seen as a positive exercise in sustainability.
Some sites may be appropriate for temporary use as parks which, by agreement with local government, might entitle the owner to a reprieve from taxes. Allowing free use of land by the public for recreational purposes absolves the owner of liability for non-manmade hazards (RCW 4.24.210), thereby reducing risk and, in some cases, eliminating or reducing insurance costs.
There are numerous permissible uses for idle lands: Community gardens, festival and open-tent market sites, pasture lands, parking – the possibilities are endless.
Owners simply need to be aware of them and seek out the permits, if required, to capitalize on the opportunities while the real estate market is stagnant. Every little bit helps, right? And the real payoff may be the avoidance of an "unwanted land" stigma, thereby enhancing marketability of the property in the process.
David W. Meyer is an of-counsel attorney with of Bullivant Houser Bailey PC. He can be reached at 360-737-2301 or david.meyer@bullivant.com.
