How to evaluate your property’s potential

Evaluating your property’s development potential is the first step in turning dirt into dollars (or dreams). Whether you own a vacant lot, a fixer-upper on an oversized parcel, or a commercial site with untapped capacity, understanding what’s possible (and profitable) is the key to smart land use. This process starts with zoning: every piece of land sits in a zone that dictates what can and can’t be built. So pull those zoning maps, check the code, and get friendly with terms like setbacks, height limits, and Floor Area Ratio (FAR).

But zoning is just the beginning. A good development potential analysis, or feasibility, also considers infrastructure access, environmental constraints, and public improvements. Are there sewer and water connections? Is your site in a floodplain, on a steep slope, or home to protected trees or wetlands? Would you have to put in a new sidewalk on the public street? These physical realities can make or break your vision—or at least require creative design and mitigation strategies. It’s also smart to assess nearby land uses and recent development trends: What’s being built (and selling) in your area? That’s often a better clue than just what’s allowed on paper.

Don’t forget the political landscape, either. Understanding your local planning department’s perspective and interests, the permitting process, and any discretionary approvals needed (like variances or rezones) can help you avoid costly surprises down the road. Meet with a planner early and ask the right questions. You'll learn a lot—and maybe even make a new ally.

Finally, run the numbers. A great idea is only as good as the feasibility behind it. Work with professionals—planners, architects, engineers, and consultants—who can help sketch out scenarios and cost estimates. Whether you’re looking to build and sell, lease, or simply increase your property’s value, a clear-eyed look at development potential is your roadmap. The highest and best use isn’t always the most obvious one. Sometimes the best play is one you hadn’t even considered.