Venturing into commercial real estate (CRE) investing can be as daunting as it is exciting. It stands as a unique avenue for diversifying one’s investment portfolio beyond stocks and bonds. This sector offers the potential for substantial financial gains but, like any investment, comes with its set of risks and challenges. In this resource, we will explore the multifaceted world of commercial real estate  investing, unpacking both its benefits and the potential challenges that investors should be wary of. Whether you're considering dipping your toes into office spaces, retail locations, or industrial sites, understanding the pros and cons of commercial real estate investing is crucial for making informed decisions in this dynamic field. What is Commercial Real Estate? Commercial real estate, often referred to as investment property or income property, is designed to generate profit through capital appreciation or rental income. Income is generated through the operation of the property, most often through tenants making rental payments, while appreciation is earned through an increase in the property's value over time. There are many different   types of commercial real estate  properties, ranging from hotels to retail centers to industrial and multi-family properties. Pros and Cons of Commercial Real Estate Investing Before venturing deeper into the specifics of commercial real estate investing, it's essential to weigh the pros and cons associated with this type of investment before making any decisions. On the one hand, commercial real estate offers investors the lure of significant returns, potentially higher than those found in residential real estate or the stock market. On the other hand, it requires a substantial initial capital investment and comes with complexities and risks that can be difficult to navigate. Whether you're a seasoned investor or new to the realm of commercial properties, understanding these aspects is vital for making well-informed decisions. Benefits of Commercial Real Estate Investment The advantages of buying commercial real estate can be significant. Here are the main benefits: 1) Income Potential Investing in commercial properties rather than residential rentals stands out primarily due to its higher earning potential. Commercial real estate owners are entitled to the remaining cash after property expenses and debt service are paid. Typically, commercial real estate offers an annual return on the purchase price ranging from 6% to 12%. This return is influenced by the location, the prevailing economic conditions, and external factors like pandemics. In contrast, the return on investment for single-family homes usually falls between 1% and 4%, showcasing a significantly lower profit margin. 2) Inflation Protection Commercial real estate acts as a solid hedge against inflation since it's a tangible asset. Developers aim for a specific return on investment before using their resources. If Net Operating Income doesn't rise fast enough to offset inflation-induced costs, developers might hold off on new projects. This limits property supply. In areas with limited supply, rental rates tend to increase, boosting property values. These value surges often keep pace with inflation, making commercial real estate a dependable protection against it. 3) Professional Relationships Investing in commercial real estate offers the opportunity to forge valuable professional connections and broaden your network. By collaborating with property managers, brokers, and other professionals within the industry, you gain insights into market trends, uncover potential investment opportunities, and gain access to off-market deals. Networking in the commercial real estate sector can lead to partnerships and joint ventures, significantly enhancing your investment portfolio. 4) Property Appreciation & Capital Growth Commercial properties offer substantial opportunities for appreciation and capital growth. With the rising demand for commercial spaces, the value of these properties often increases over time. Investors focusing on properties in prime locations with high growth prospects stand to gain from long-term capital appreciation. Furthermore, the value of commercial properties can be enhanced through strategic upgrades, renovations, and renegotiating leases. 5) Triple Net Leases Some properties feature a distinct lease arrangement called a "triple-net lease". This agreement obligates the tenant to pay not only the base rent but also cover all expenses related to taxes, utilities, and maintenance. This arrangement significantly reduces the management duties of the owner, leading to a largely passive income stream. Disadvantages of Commercial Real Estate Investment As with any investment, commercial real estate investors face various investment risks  that must be carefully considered. Before committing any capital, investors should conduct thorough due diligence to ensure they have strategies in place to mitigate each of these risks.The main risks of investing in commercial real estate include: 1) Time Commitment In commercial real estate investment, investors face the complexities of managing multiple leases, yearly adjustments of common area maintenance (CAM) costs for which tenants are responsible, increased maintenance challenges, and heightened public safety issues. Essentially, there is a greater management burden; similarly, just as tenants are concerned with public perception, investors must also consider this aspect carefully. 2) Requires Professional Help Maintenance and property management expenses can add up and must be factored in when evaluating the price to pay for a commercial investment property. Prospective investors should evaluate beforehand whether they want to manage leasing and the relationships themselves or outsource those responsibilities. 3) Large Initial Investment Requirements Commercial properties, particularly the most sought-after ones, command high prices, making them accessible primarily to well-funded investors and firms. This scenario presents two key risks. Firstly, the high cost of commercial properties necessitates a substantial capital investment, increasing the risk of significant financial loss. Secondly, the substantial investment required to acquire a commercial property could restrict an investor's capacity to diversify their portfolio, given the large allocation of resources to a single asset. 4) Vacancy Risks Vacancy poses a significant risk as it equates to a loss of income for the property. This risk is especially acute for commercial properties that rely on a limited number of tenants, where losing even one can result in a substantial income disruption for the property. 5) Property Damage Risks Properties intended for commercial use have more public visitors and therefore have more people on the property each day that can get hurt or do something to damage your property. Cars can hit patrons in parking lots, people can slip on ice during the winter, and vandals can spray paint the sides of the building. Incidents like these can occur anywhere, but chances of experiencing something like these events go up when investing in commercial properties. The environment can also cause property damage in the form of natural disasters and contamination. Environmental risks  and contamination risks should be assessed as part of the due diligence process through a   Phase 1  Environmental Report or with the guidance of a professional. Prospective investors can utilize LandApp's  risk indexes to assess a specific property's environmental and industrial contamination risk for any U.S. property at the click of a button. Although this does not replace a formal Phase 1 report, it is a great precursor to investing in a formal Phase 1 report: Is it a Good Idea to Invest in Commercial Real Estate? Commercial real estate stands as a solid asset, offering a strong and consistent cash flow, and adds diversification to investment portfolios. Nonetheless, investors should meticulously assess their risk tolerance, investment goals, and time frame to identify the most appropriate type of commercial property investment for their specific circumstances. How to Find Commercial Properties for Sale Finding commercial properties for sale requires a multifaceted approach, leveraging both digital and traditional resources. One effective starting point is commercial real estate listing websites. These platforms provide comprehensive listings that include various types of commercial properties across different geographical locations. Additionally, networking with local real estate brokers can uncover not only listed properties but also off-market deals which are not publicly advertised. Subscribing to industry newsletters and participating in local investment forums or real estate clubs can also be fruitful, offering insights into available properties and emerging market trends. Attending commercial real estate auctions, either in person or online, presents another opportunity to find properties that may be sold at a competitive price. Prospective investors can also utilize social media platforms and real estate investment groups, where members often share leads on potential properties for sale. Due Diligence for Commercial Real Estate Investing When choosing to invest in commercial real estate, investors should always consult with professionals that are familiar with commercial real estate investing specifically. They should also ensure that they conduct thorough due diligence to minimize the potential risks associated with investing in a commercial property. Due diligence is a critical phase in the commercial real estate investment process, enabling investors to make informed decisions and minimize risks. It requires a multifaceted approach, considering legal, financial, physical, and environmental aspects to ensure that the investment will meet the investor's goals and objectives. Failure to conduct thorough due diligence can expose an investor to significant risks and unforeseen expenses, emphasizing the importance of this phase in securing a sound investment. LandApp Pro can help prospective commercial property investors uncover properties for sale across the U.S. and conduct due diligence. For example, it can easily identify any property's potential risks compared directly to state and county averages with the click of a button and more to help with initial due diligence. Explore LandApp Pro's property data and analytics here , and subscribe for just $10 per month below:

Investing in commercial real estate can be a lucrative venture, offering opportunities for substantial returns and portfolio diversification. However, navigating this complex market requires knowledge, strategy, and intuition. Whether you are a seasoned investor or just starting your journey in commercial real estate, understanding the key tips and best practices can make all the difference. In this resource, we will explore essential strategies and insights to help you make informed decisions, mitigate risks, and optimize your investment outcomes in the ever-evolving landscape of commercial real estate. Tips for Commercial Real Estate Investing Before investing in a commercial property, it's crucial to conduct thorough research and assess all potential challenges. Define Why You're Investing Although it might seem trivial, understanding your "why" is crucial. Why are you investing? Why choose commercial real estate, and why now? Clarifying your end goal is vital. What do you aim to achieve by investing in commercial real estate? Once you establish your "why," you can identify the types of properties that will help you reach your objectives. As you develop and diversify your commercial real estate portfolio, keep your original reason for investing at the forefront. Let it guide your decisions. This clarity will provide direction and help you steer clear of investment options that don't align with your goals. Research the Market Researching the commercial real estate market before investing is a critical step that can significantly impact your investment success. The CRE market is complex and ever-changing, influenced by factors such as economic trends, local zoning laws, and   commercial property value s . By conducting comprehensive market research, you gain valuable insights into these factors, allowing you to make informed decisions. Understanding market trends helps identify high-demand areas and predicts future property appreciation, ensuring your investments yield favorable returns. Moreover, analyzing the local market conditions can reveal potential risks, enabling you to devise strategies to mitigate them. In essence, thorough market research arms you with the knowledge to align your investment decisions with market realities, maximizing opportunities while minimizing potential pitfalls. Determine Which Type of Commercial Real Estate to Invest In Purchasing commercial real estate differs from acquiring a residential property. It offers the opportunity for quick buying and selling or leasing to businesses for profit. First-time commercial real estate investors should familiarize themselves with the various types of commercial properties. As a beginning investor, you should zero in on one type of commercial real estate at a time. Select the type of property that interests you and explore how businesses utilizing these properties function. Once you've gained sufficient knowledge, you can begin investing in different property types. Types of Commercial Real Estate The four main   types of commercial real estate  are multifamily, office, industrial, and retail properties. Multifamily:  Multifamily commercial real estate involves two or more residential properties owned by an investor. Each unit houses a tenant or family. The owner is responsible for maintenance, leasing, and management. For those with limited capital, multifamily real estate is a good start for a CRE portfolio. Investors can secure financing more easily than other CRE types, and the closing process is faster. Multifamily investors often begin with a few properties, then use tax advantages like a 1031 Exchange to upgrade to larger investments. Over time, multifamily investing builds wealth that can be passed down to future generations. Office: Office properties are a favorite among CRE investors, offering a diverse range of options. These can include anything from a modest single-building setup ideal for startups to expansive multi-story office complexes leased by major corporations. Industrial: Warehouses, factories, and distribution centers all belong to the category of industrial properties. These facilities are specifically designed to cater to the needs of manufacturing plants or logistics hubs. Due to their minimalist construction, they are generally more affordable to purchase and maintain. Consequently, investors are increasingly attracted to the industrial market as returns grow. However, the downside is that industrial commercial real estate primarily appeals to a niche tenant market, making leasing a potential challenge. Retail: Retail real estate encompasses properties where businesses sell their goods, such as grocery stores, strip malls, shopping centers, or standalone shops for small businesses. Typically, an investor acquires the retail space, and then a business owner leases it from the investor. Prepare & Plan Finances Before making an offer on a commercial property, know your budget and have your financial plan ready. Decide how you'll pay— whether through a loan or cash up front— and set your limits. Applying for financing first saves time and strengthens your offer. Pre-approval shows you're serious and can close quickly. Having a knowledgeable CPA can guide your decisions. During loan underwriting, lenders will review your cash flow statements, credit history, and net worth. Be prepared with these documents! Additionally, you need a business plan to get approved for any loans. Lenders want assurance that you can repay the loan. Outline how you'll use the property and project your investment return, and be sure to share your business plan with the lender. Due Diligence is Crucial Just as with all real estate purchases, when you buy a commercial property, it’s your responsibility to ensure that property is a good investment. Not conducting thorough due diligence on properties you're interested in purchasing is one of the biggest   things to avoid when investing in commercial real estate . Risk Due Diligence for Commercial Properties An environmental assessment is a comprehensive evaluation of a property to identify existing environmental contamination or conditions that might lead to future contamination. Its purpose is to uncover potential environmental issues that may necessitate remediation or impact the property's value and usability. Using LandGate's LandApp tool, you can assess man-made and   environmental risks for commercial properties  and undeveloped land nationwide. The   risk index scores  evaluate a property's potential for various natural disasters and contamination risks scored on a scale of 0-100: Proximity to Amenities Evaluating a property's proximity to amenities is another critical aspect of commercial real estate investing. According to   Cushman and Wakefield , among the top five most common amenities are both on-site parking and access to public transportation within two blocks. Other amenities that make commercial properties more attractive to potential tenants are restaurants, gas stations, EV charging stations, hotels, and schools. You can evaluate any property's proximity to these amenities and more with LandGate's   LandApp  tool: Know How to Protect Yourself & Your Assets For commercial real estate property owners, especially those new to investing, safeguarding your properties and all financial and physical assets is vital. Unfortunately, CRE investors face a heightened risk of lawsuits. Therefore, it is essential to protect yourself by forming an LLC or establishing other legal safeguards. Have a Plan for Leasing & Property Management Managing tenants can be a demanding, full-time responsibility. If you intend to lease out your property, it's crucial to have someone manage the daily operations. Hiring a property management company can alleviate this burden, allowing you to concentrate on your career or expand your real estate portfolio while the management team ensures everything runs seamlessly. A property management team provides a wide array of services. They act on your behalf to maintain the property and address tenant emergencies. Property managers handle tenant communications, rent collection, hire maintenance professionals, and solve any issues that may arise. For smaller properties, you might need to manage them yourself initially as you grow your portfolio. However, self-management has its challenges. It can be difficult to deliver bad news to tenants, and owner-managers often find themselves conceding to lower rents or being lenient with rent collection. They might also agree to repair issues that should be the tenants’ responsibility. Work With a CRE Professional Working with a commercial real estate professional can be invaluable when investing in properties, as they bring extensive knowledge and experience to the process. These experts are well-versed in market trends, property valuation, and negotiation tactics, offering critical insights that can help investors make informed decisions. CRE professionals can identify potential opportunities that align with your investment goals, mitigating risks associated with property acquisition. Additionally, they often have a network of industry contacts, such as lenders, inspectors, and legal experts, which can streamline the complex layers of a CRE transaction. By leveraging their expertise, you can navigate challenges more effectively, ultimately enhancing the likelihood of a successful and profitable investment. Getting Started with Commercial Real Estate Investing Commercial real estate investing can be a rewarding endeavor, but it requires careful planning and strategic execution. By securing financing, conducting thorough due diligence, evaluating proximity to amenities, protecting your assets, and planning for property management, you can mitigate risks and enhance your investment potential. Searching for commercial real estate for sale ? Check out LandApp's marketplace to view nationwide data-enhanced listings to find your next investment property: Equipping yourself with the right tools and guidance can significantly impact your success. LandApp Pro is an indispensable all-in-one property due diligence tool for commercial real estate, providing comprehensive insights and facilitating more informed, confident investment decisions. With the support of professional expertise and robust tools like LandApp, you can navigate the complexities of commercial real estate with increased assurance and achieve your investment goals.

Commercial real estate is a dynamic, multifaceted world that goes far beyond the confines of office and retail buildings. With its varied inventory of spaces that cater to a wide range of business needs, understanding the different types of commercial real estate properties can serve as a profitable education for real estate investors and a strategic tool for business owners. Understanding the nuances of commercial property is crucial, whether you're looking to invest in the next business hub or find the perfect space for your growing enterprise. Types of Commercial Real Estate Properties Commercial real estate  (CRE) encompasses income-generating properties that serve as business premises, excluding multifamily properties and hospitality buildings designed for residential living. Typically, investors own these properties, collecting rent from the businesses operating within. The types of commercial real estate includes office spaces, retail centers, hotels and lodging, industrial properties, multifamily properties, institutional properties, special-purpose properties, and mixed-use properties. Office Spaces Office spaces are a cornerstone of the commercial property market, often serving as the operational hub of businesses. From traditional layouts to modern designs, these spaces are crafted to support the administrative and functional needs of a company. Offering a range of configurations—such as open-plan offices, co-working hubs, and executive suites—office spaces are tailored to foster productivity and professionalism. Their appeal lies in providing businesses with a prestigious address, a focused work environment, and, in many cases, access to valuable support services within business parks or office complexes. Retail Centers Retail centers are dynamic hubs where commerce and consumers converge. These properties take various forms, from expansive shopping malls and strip malls to standalone retail stores. What ties them together is their focus on delivering exceptional customer experiences, often enhanced by features like ample parking, food courts, and entertainment options. When evaluating a retail investment, location is paramount—visibility and accessibility play a crucial role in driving success. The right retail property can draw substantial foot traffic, creating a profitable space for a diverse array of businesses to thrive. Hotels and Lodging The leisure and tourism industry is a thriving sector in commercial real estate, with hotels and lodging facilities serving as its cornerstone. These establishments provide travelers with a temporary home, offering varying degrees of comfort, luxury, and service. From charming boutique hotels to expansive corporate chains, the lodging industry is incredibly diverse, catering to both niche markets and broader audiences. This diversity opens the door for tailored investments and services. For investors, success in hotel property investment lies in understanding travel trends, consumer behavior, and the distinct needs of different traveler demographics. Industrial Properties Industrial properties- encompassing warehouses, distribution centers, and manufacturing facilities- serve as the backbone of large-scale commercial operations. These spaces are typically designed with expansive, open layouts and high ceilings to accommodate heavy machinery and extensive storage needs. Location plays a pivotal role, with proximity to transportation hubs and logistical networks being essential for efficiency. The industrial sector is undergoing a significant evolution, driven by the growth of e-commerce. This shift has sparked increased demand for versatile, technology-enabled spaces that can adapt to the complexities of modern supply chains. Multifamily Properties Multifamily properties are a category of commercial real estate designed to accommodate multiple families or individuals in separate housing units within a single building or complex. Classified as 'commercial' when they exceed five units, these properties can range from duplexes and fourplexes to towering high-rise apartment buildings. What sets multifamily properties apart in the commercial sector is their ability to generate multiple rental income streams, offering greater resilience to vacancy risks compared to single-tenant properties. Investors are drawn to these assets for their reliable cash flow, and with a growing population driving demand for residential housing, multifamily properties often represent a stable and profitable investment opportunity. Institutional Properties Institutional properties house organizations that provide essential community services. These include educational facilities such as schools and universities, as well as healthcare institutions like hospitals and medical centers. These properties are unique in that they must not only be functional and efficient in their use of space, but they must also comply with strict regulatory and safety standards. When it comes to investment, institutional properties often offer long-term leases and the stability of being tied to essential public services. Data Centers Data centers are among the most valuable assets in the investment-grade commercial real estate market in 2024, if not the most valuable. Demand for these facilities is outpacing supply, driven by the rapid growth of AI and the increasing volume of information exchanged globally. This demand surge has created opportunities for new players to enter the market and allowed existing operators to expand at an unprecedented rate. Over the next four years, approximately 2,840 MW of capacity are expected to be developed across five of the ten largest U.S. data center markets. To put this into perspective, this additional capacity is still smaller than the current market in Northern Virginia , which, at roughly 3,000 MW, remains the largest data center hub in the world. Undeveloped Properties Commercial real estate developers and investors often begin with little more than an empty plot of land and a bold vision. Development properties refer to sites designated for future commercial use, whether through constructing new buildings or repurposing existing ones. The true value of these properties lies in their potential. Savvy investors can unlock this value by identifying high-growth areas, obtaining the necessary permits, and creating spaces that align with evolving market demands. Special-Purpose Commercial Properties Special-purpose properties add unique dimensions to the commercial real estate landscape, encompassing everything from sports stadiums and amusement parks to coworking spaces and self-storage facilities. Designed to serve specialized functions or cater to niche markets, these properties require a deep understanding of their specific regulatory requirements, technological needs, and consumer expectations. For investors, mastering these complexities is essential to unlocking their potential value. Mixed-Use Properties A mixed-use property combines different types of real estate within a single development. For instance, it might feature office spaces on the ground floor with residential apartments above. This versatile setup allows for a seamless blend of commercial and living spaces. Investing in Commercial Real Estate Commercial property investment involves individuals or groups committing funds to a profit-driven business or property, with the expectation of generating a return on investment (ROI) based on the venture's profitability. This can encompass an individual investing in a multifamily complex or a group of investors pooling resources for an office building. When buying commercial properties , investors primarily seek to generate income or enhance the property's value, so o ne of the most important steps of investing in commercial real estate is to determine the type of commercial property you'd like to invest in. Investing in office spaces is the most common for of commercial real estate investment, but investing in industrial and retail properties is also common. Additionally, for those looking to invest in commercial property , thorough research and a deep understanding of the particular needs of the market segment are vital, as there are many different types of real estate investment risks . LandApp Pro can help commercial property investors make well-informed purchasing decisions using our in-depth proprietary data and analytics, like proximity to amenities and environmental risk index scores. Similarly, current commercial property owners can learn more about their property's value and discover potential income-generating opportunities for their property using LandApp Pro.

Key Takeaways: California's solar energy now powers over 30% of the state, leading the nation with 23,000 MW capacity, which supports 21 million homes and has attracted $105.3 billion in investments. The state’s policies, like the Residential Solar Mandate, showcase a strong commitment to renewable energy, offering financial opportunities for landowners through solar land leases. LandGate assists landowners by providing insights into the value of their land for solar development and connecting them with developers. The solar development process involves lease negotiations and feasibility studies, but only 20% of projects proceed due to infrastructure constraints. Incentives such as the Inflation Reduction Act and the PACE program make solar projects financially viable, with average farms generating enough power for 16,510 households. What Should Landowners Know About Solar Farm Development in California? Over the past two decades, California's energy landscape has experienced a remarkable transformation, moving decisively from traditional energy sources to renewable ones. In 2000, the state relied heavily on conventional energy, but the rise of solar power has played a significant role in the shift towards a sustainable energy mix. As of July 2024, solar energy contributed to over 30% of the state's electricity, reflecting substantial growth in this sector. Notably, California leads the nation in installed solar capacity, with 23,000 MW, enough to power over 21 million homes. The state's robust solar market has attracted $105.3 billion in investment and created over 78,000 jobs, highlighting the economic benefits alongside environmental gains. California's commitment to renewable energy is evident through policies like the Residential Solar Mandate, which requires all new homes built from 2020 onwards to have solar installations. Despite recent policy changes, such as the transition from net metering to net billing, which have posed challenges, the state's solar industry continues to adapt and thrive. Major installations like the 527.8 MW Mount Signal Solar Farm and corporate projects by companies like Apple underline the extensive development in the sector. Many solar developers are actively planning new projects across the state. This presents a great opportunity for landowners to earn a steady stream of income from their land through solar lease payments, also known as solar payments. Landowners in California are receiving offers from developers to lease their land for solar farms. They often wonder how much their land is worth for a solar farm and if they are receiving a good offer. Leasing land for solar farms helps landowners provide their future generations with long-term financial stability. Several factors go into solar farm valuations that landowners and realtors should consider.  LandGate is a marketplace that provides data intelligence to landowners while also providing them the opportunity to connect with California solar developers. Traditionally, developers would knock on landowners' doors or cold-call them. This old-fashioned way is not easy for landowners. It can be perceived as unwanted solicitation at a time when the landowner is not ready and doesn’t have enough information to feel comfortable talking about a solar farm on their land. LandGate provides useful data to landowners or to their agents to inform them for free about the value of their land for solar farm leasing. Equipped with more information, landowners can make good and fast decisions about pursuing a solar lease and joining in on the solar farm development in California. What is the Process for Leasing Land for a Solar Farm in California? Step 1: Solar Lease Negotiation Period in California The solar lease negotiation process is the first step landowners take when interested in having a solar farm on their property. Land professionals can assist landowners during this period to make sure they are receiving the best deal possible  but also understand the time period between signing the lease and having an active solar farm on their land.  During the negotiations, landowners can negotiate solar lease payments, the length of the lease for the solar farm, and the percentage of the escalator to combat inflation. Step 2: Solar Lease Option Agreement in California The next step is for the landowner to get a solar farm option agreement. At that point, the solar developer has done a preliminary study, also called a feasibility study, to know if the site is potentially suitable for solar farm development. Why Can’t I Get a Solar Lease Agreement Directly? The process of a solar farm project in California begins with optioning the land, which is called “site control” by developers. The reason solar developers cannot go straight to a solar lease is that they have to evaluate the land thoroughly. Typically the initial screening study is good enough that this first due diligence process is all that is needed. Another larger uncertainty for solar developers is to know if the solar project will be accepted by the utility on the electrical infrastructure (or electrical network). We refer to this phase as “utility’s application” in the graph above and developers refer to this phase as “queue submission”. This means that the solar project enters the interconnection queue of that region waiting for regulatory approval.  These queues are known as Independent Systems Operator (ISO) or Regional Transmission Organization (RTO). During this period, the analysis of possible engineering and land factors is conducted to determine the feasibility of the project to be constructed and connected to the grid. This is the reason why the solar developer starts with an option, as not all solar projects are approved by the ISO/RTO. How Likely Will My California Solar Option Become a Solar Lease? At the moment, about 20% of solar options become a solar lease and are built into a solar farm. Currently, the electrical infrastructure network is a big bottleneck. There are more applications of solar projects to get on transmission lines than available capacity.  However, governments are aware of this situation and are working to ease it, to foster more solar development. This means that it will likely get resolved in the next few years. The problem of available capacity applies only to utility-scale solar farm projects, which are typically greater than 5 MW capacity.  Where Can a Landowner Get More Information About the Solar Lease / Option Period   in California? LandGate assists landowners with determining the value of their land for a solar farm. We do this by taking into account the proximity of substations, transmission lines, and state incentives - each of which plays a role in site control. Am I Getting Paid During the Solar Option Period? Yes. Solar payments start during the option period but are usually smaller compared to the solar payments during the lease or construction phase of the solar farm. Step 3: Solar Lease Agreement in California Once the availability of grid capacity is confirmed, the solar project is moved to a “planned” phase. During this time, the developers will exercise the solar farm option agreement to become a solar farm lease agreement. Typically larger solar rent payments start at this time. Step 4: Solar Farm Construction in California Solar payments are phased as the project progresses. It starts with small solar lease payments  during the option phase. Then it increases during the solar lease phase, it increases again during the construction phase of the solar farm, and the largest solar payment occurs when the solar farm is active and generating electricity. How Long Does It Take to Build a Solar Farm in California? Usually, it will take between 1 to 2 years to build a utility-scale solar farm. It takes less time to build a community solar farm since they are usually smaller in size. Step 5: Active Solar Farm in California After the construction has been completed, the solar farm is now considered ‘active.’ For landowners, this phase is called ‘production,’ as it signifies that their land is currently producing energy for the electrical grid that it is interconnected with. The production phase lasts anywhere from 25 to 50 years depending on what was negotiated on the lease. What Can a Solar Farm Power in California? In California, the average solar farm size for active farms is 171 acres generating approximately 17.8 megawatts (MW) of electricity when operating under optimal conditions. This output has the potential to cater to the energy needs of around 16,510 households as the typical electricity consumption of an average household in California stands at 9,444 kWh per year. What is the Impact of the IRA and Other Factors in California? California solar incentives have encouraged solar companies to develop more projects across the state. Additionally, favorable market conditions for electricity prices are encouraging investment into the solar sector in California. Landowners and real estate agents should have an understanding of these incentives and market conditions to be prepared for potential offers for solar project deals. Inflation Reduction Act: This bill passed in 2022 and became effective at the beginning of 2023 provides incentives to reduce renewable energy costs for organizations on a business, educational institution, and state level. More specifically, in California, solar energy is eligible for a tax credit. Net Metering: With net metering, consumers are allowed to get retail credit for the surplus electricity generated from local power systems that are sent back to the grid. Property Assessed Clean Energy (PACE) Program: Eligible homeowners can obtain financing for solar panel installation through the Property Assessed Clean Energy (PACE) program. This program allows the homeowner to finance the installation and repay the loan via their property taxes.​ Self-Generation Incentive Program (SGIP):  The California Public Utilities Commission’s Self-Generation Incentive Program (SGIP) provides rebates to residents who install a solar battery in addition to their solar panels. The rebate amount depends on the battery's storage capacity and the resident's local utility company. Renewable Portfolio Standard (RPS): California's Renewables Portfolio Standard (RPS) was initially set by legislation passed in 2002. Over time, amendments to the law have mandated that by 2030, and every year thereafter, 50% of California's electric utilities' retail sales must come from eligible renewable energy sources. The law includes interim targets for utilities to meet. Although Publicly Owned Municipal Utilities (POUs) are not regulated by the California Public Utilities Commission (CPUC), they are still impacted by the law, and their governing boards are responsible for setting procurement requirements. The combination of a decrease in LMP pricing plus a slight increase in PPA pricing has made solar energy an attractive option for electricity generation in California. LMP is a pricing method used in electricity markets to determine the cost of electricity at specific locations (called ‘nodes’) within the electrical grid.   A PPA (Power Purchase Agreement) is a contract between a renewable energy developer (such as a solar company) and a power purchaser (such as a utility). Over the last three years, California experienced a 0.16% increase in PPA pricing and an average price LMP price decrease of 31.43% (this is expected to decrease by an additional 33.74% in 2024).  In the context of solar energy projects in California, the relationship between LMP and PPA pricing lies in how the PPA sets the pricing terms for the electricity being sold. The relatively stable price in the PPA provides certainty to the solar developer about the revenue they will receive for the electricity that they produce.  Meanwhile, the LMP serves as the market price for electricity at a specific node. When the LMP at a particular node in the grid is lower than the contract price specified in the PPA, it benefits the solar company, as they will receive the contract price and sell the electricity at a higher market price (increasing their revenues). This combination has aided in the rise of solar projects in California.  Commercial, Community, & Behind-the-Meter California Solar Farms  Typically, landowners and land professionals think of solar farms as huge plots of land covered in solar panels out in the middle of nowhere. However, this usually is not the case! In California, solar farms are typically 171 acres, allowing about 17.8 MW of electricity to be produced under ideal conditions.  Commercial solar projects  are the commonly largest energy projects being about 40+ acres of land. These solar farms usually feed their energy into the grid to the surrounding area. Realistically these solar farms can be any size as it depends on the capacity available within the grid.  Community solar farms  in California serve energy customers directly within the same area or community. These solar farms tend to be smaller in size in relation to acreage and megawatts. Community solar is different from residential solar as residential solar panels are found on top of rooftops. Community solar projects can be larger, it just depends on the location.  Commercial, residential, and industrial solar farms are all considered to be behind-the-meter solar farms. Behind-the-meter means that they are intended to generate power primarily for on-site consumption rather than selling it to the grid. Community solar and utility-scale solar farms generate energy that is utilized in the grid to send it to all consumers a part of that grid. This means that they are front-of-the-meter solar farms.  Discover Land’s Value For Solar Leasing in California The solar energy industries within California are growing to achieve energy goals for clean energy development. This makes it easier for landowners and real estate agents to participate in solar development deals. Landowners in California can receive a free solar leasing estimate by identifying and claiming ownership of their parcel on our map.  Realtors can assist their clients in learning about their property’s potential for solar energy by using LandGate. Land professionals can utilize LandGate’s data and analytics to provide their clients with information about their resource’s potential.

What Should Landowners Know About Solar Farm Development in Illinois? As of August 2023, Illinois is one of the most active states for solar farm development and activity. The number of solar farms in Illinois have been increasing exponentially over the past decade. This is a direct result of the implementation of various incentives promoting renewable energy generation across the state. Many solar developers are actively planning new projects across the state. This presents a great opportunity for landowners to earn a steady stream of income from their land through solar lease payments , also known as solar payments. Landowners in Illinois are receiving offers from developers to lease their land for solar farms. They often wonder how much their land is worth for a solar farm and if they are receiving a good offer. Leasing land for solar farms helps landowners provide their future generations with long-term financial stability. There are several factors that go into solar farm valuations that landowners and realtors should consider. What is the Process for Leasing Land for a Solar Farm in Illinois? Step 1: Solar Lease Negotiation Period in Illinois The solar lease negotiation process is the first step landowners take when interested in having a solar farm on their property. Land professionals can assist landowners during this period to make sure they are receiving the best deal possible but also understand the time period between signing the lease and having an active solar farm on their land. During the negotiations, landowners can negotiate solar lease payments, the length of the lease for the solar farm, and what the percentage of the escalator is to combat inflation. Step 2: Solar Lease Option Agreement in Illinois The next step is for the landowner to get a solar farm option agreement. At that point, the solar developer has done a preliminary study, also called a feasibility study, to know if the site is potentially suitable for solar farm development. Why Can’t I Get a Solar Lease Agreement Directly? The process of a solar farm project in Illinois begins with optioning the land, which is called “site control” by developers. The reason solar developers cannot go straight to a solar lease is because they have to evaluate the land thoroughly. Typically the initial screening study is good enough that this first due diligence process is all that is needed. Another larger uncertainty for solar developers is to know if the solar project will be accepted by the utility on the electrical infrastructure (or electrical network). We refer to this phase as “utility’s application” in the graph above and developers refer to this phase as “queue submission”. This means that the solar project enters the interconnection queue of that region waiting for regulatory approval. These queues are known as Independent Systems Operator (ISO) or Regional Transmission Organization (RTO). During this period, the analysis of possible engineering and land factors is conducted to determine the feasibility of the project to be constructed and connected to the grid. This is the reason why the solar developer starts with an option, as not all solar projects are approved by the ISO/RTO. How Likely Will My Illinois Solar Option Become a Solar Lease? At the moment, about 20% of solar options become a solar lease and are built into a solar farm. Currently, the electrical infrastructure network is a big bottle neck. There are more applications of solar projects to get on transmission lines than available capacity. However, governments are aware of this situation and are working to ease it, in order to foster more solar development. This means that it will likely get resolved in the next few years. The problem of available capacity applies only to utility scale solar farm projects, which are typically greater than 5MW capacity. Where Can a Landowner Get More Information About the Solar Lease / Option Period in Illinois? LandApp assists landowners with determining the value of their land for a solar farm. We do this by taking into account the proximity of substations, transmission lines, and state incentives - each of which play a role in site control. Am I Getting Paid During the Solar Option Period? Yes. Solar payments start during the option period but are usually smaller compared to the solar payments during the lease or construction phase of the solar farm. Step 3: Solar Lease Agreement in Illinois Once the availability of grid capacity is confirmed, the solar project is moved to a “planned” phase. During this time, the developers will exercise the solar farm option agreement to become a solar farm lease agreement. Typically larger solar rent payments start at this time. Step 4: Solar Farm Construction in Illinois Solar payments are phased as the project progresses. It starts with small solar lease payments during the option phase. Then it increases during the solar lease phase, it increases again during the construction phase of the solar farm, and the largest solar payment occurs when the solar farm is active and generating electricity. How Long Does It Take to Build a Solar Farm in Illinois? Usually it will take between 1 to 2 years to build a utility scale solar farm. It takes less time to build a community solar farm since they are usually smaller in size. Step 5: Active Solar Farm in Illinois After the construction has been completed, the solar farm is now considered ‘active.’ For landowners, this phase is called ‘production,’ as it signifies that their land is currently producing energy for the electrical grid that it is interconnected with. The production phase lasts anywhere from 25 to 50 years depending on what was negotiated on the lease. What Can a Solar Farm Power In Illinois? In Illinois, the average solar farm size is 50 acres, generating approximately 9 megawatts (MW) of electricity when operating under optimal conditions. This output has the potential to cater to the energy needs of around 1400 households as the typical electricity consumption of an average household in Illinois stands at 10,500 kilowatt-hours per year. What is the Impact of the IRA and Other Factors in Illinois? Illinois solar incentives have encouraged solar companies to develop more projects across the state. Additionally, favorable market conditions for electricity prices and power purchase agreements are encouraging investment into the solar sector in Illinois. Landowners and real estate agents should have an understanding of these incentives and market conditions to be prepared for potential offers for solar project deals. Inflation Reduction Act: This bill passed in 2022 and became effective at the beginning of 2023 provides incentives to reduce renewable energy costs for organizations on a business, educational institution, and state level. More specifically, in Illinois, solar energy is eligible for a tax credit. Illinois Power Agency: established in 2007 by the Illinois Power Agency Act, the IPA organizes and administers incentive programs to promote renewable energy and zero-carbon energy generation across Illinois. They are requiring large electric utility companies to source a minimum of 25% of their electricity from renewable sources by 2025. However, in 2022, only 13.5% of the electricity generated came from renewable sources. This was short of their 19% goal. Since coming up short of this goal, Illinois is providing Renewable Energy Credits (RECs). RECs are certificates that are created when a renewable energy generating facility produces electricity. RECs may be sold to the utility for meeting the state’s Renewable Portfolio Standards. Illinois Solar Renewable Energy Credits (SRECs): SRECs in Illinois are financial incentives for solar energy system owners. They can be sold to electric utilities that need to meet their renewable energy targets, which provides additional revenue for solar projects. The combination of an increase in LMP pricing plus a decline in PPA pricing has made solar energy an attractive option for electricity generation in Illinois. LMP is a pricing method used in electricity markets to determine the cost of electricity at specific locations (called ‘nodes’) within the electrical grid. A PPA (Power Purchase Agreement) is a contract between a renewable energy developer (such as a solar company) and a power purchaser (such as a utility). Over the last three years, Illinois experienced a notable 4.5% reduction in PPA pricing and an average price LMP price increase of 40.3% (this is expected to increase by an additional 14.5% in 2024). In the context of solar energy projects in Illinois, the relationship between LMP and PPA pricing lies in how the PPA sets the pricing terms for the electricity being sold. The fixed price in the PPA provides certainty to the solar developer about the revenue they will receive for the electricity that they produce. Meanwhile, the LMP serves as the market price for electricity at a specific node. When the LMP at a particular node in the grid is higher than the contract price specified in the PPA, it benefits the solar company, as they will receive the contract price and sell the electricity at a higher market price (increasing their revenues). This combination has aided in the rise of solar projects in Illinois. Commercial, Community, & Behind-the-Meter Illinois Solar Farms Typically, landowners and land professionals think of solar farms as huge plots of land covered in solar panels out in the middle of nowhere. However, this usually is not the case! In Illinois, solar farms typically average 50 acres, allowing about 9MW of electricity to be produced under ideal conditions. Even though Illinois is not known to be the sunniest place in the US, solar irradiance only plays a small role in what’s needed for solar projects to be developed. Solar incentives in Illinois have played a more significant role in the increase of solar installation across the state. Commercial solar projects are the commonly largest energy projects being about 40+ acres of land. These solar farms usually feed their energy into the grid to the surrounding area. Realistically these solar farms can be any size as it depends on the capacity available within the grid. Community solar farms in Illinois serve energy customers directly within the same area or community. These solar farms tend to be smaller in size in relation to acreage and megawatts. Community solar is different from residential solar as residential solar panels are found on top of roof tops. Community solar projects can be larger, it just depends on the location. Commercial, residential, and industrial solar farms are all considered to be behind-the-meter solar farms. Behind-the-meter means that they are intended to generate power primarily for on-site consumption rather than selling it to the grid. Community solar and utility scale solar farms generate energy that is utilized in the grid to send it to all consumers a part of that grid. This means that they are front-of-the-meter solar farms. Discover Land’s Value For Solar Development & Leasing in Illinois The solar energy industries within Illinois are growing to achieve energy goals for clean energy development. This makes it easier for landowners and real estate agents to participate in solar development deals. Landowners in Illinois can receive a free solar leasing estimate by identifying and claiming ownership of their parcel on our map. Realtors can assist their clients in learning about their property’s potential for solar energy by using LandApp Pro. Land professionals can utilize LandApp Pro’s data and analytics to provide their clients with information about their resource’s potential.

Key Takeaways: Indiana ranks 21st in the U.S. for solar farm activity, with a strong growth trajectory projected to add over 9000 MW in the next five years, placing it 5th for future development. The increase in solar farm development is driven by various state incentives promoting renewable energy, providing landowners with opportunities for income through solar lease payments. LandGate offers a marketplace for data intelligence, helping landowners evaluate solar lease offers and connect with developers, streamlining the traditional solicitation process. The solar leasing process involves several steps: negotiation, option agreements, and final lease agreements after confirming grid capacity. Approximately 20% of solar options transition into lease agreements due to infrastructure bottlenecks, but improvements are anticipated. Indiana solar incentives, such as the Inflation Reduction Act and specific state legislation, enhance the attractiveness of solar investments. Solar projects benefit from increased market electricity prices and PPA agreements, ensuring stable returns for developers. Indiana solar farms, averaging 42.5 acres and producing 7.2 MW, can power over 1,250 households, highlighting their significant local impact. LandGate assists landowners in assessing the value of their land for solar development by considering proximity to infrastructure and available incentives. What Should Landowners Know About Solar Farm Development in Indiana? As of October 2023, Indiana is ranked 21st in the country for solar farm activity and development. The number of solar farms in Indiana have been increasing exponentially over the past decade. The state is projected to add over 9000 MW in the next 5 years, which ranks 5th in the country for future solar development. This is a direct result of the implementation of various incentives promoting renewable energy generation across the state. Many solar developers are actively planning new projects across the state. This presents a great opportunity for landowners to earn a steady stream of income from their land through solar lease payments , also known as solar payments. Landowners in Indiana are receiving offers from developers to lease their land for solar farms . They often wonder how much their land is worth for a solar farm and if they are receiving a good offer. Leasing land for solar farms helps landowners provide their future generations with long-term financial stability. There are several factors that go into solar farm valuations that landowners and realtors should consider. LandGate is a marketplace that provides data intelligence to landowners while also providing them the opportunity to connect with Indiana solar developers. In a traditional way, developers would knock on landowners' doors or cold-call them. This old-fashioned way is not easy for landowners. It can be perceived as unwanted solicitation at a time when the landowner is not ready and doesn’t have enough information to feel comfortable talking about a solar farm on their land. LandGate provides useful data to landowners or to their agent to inform them for free about the value of their land for solar farm leasing. Equipped with more information, landowners can make good and fast decisions about pursuing a solar lease. What is the Process for Leasing Land for a Solar Farm in Indiana? Step 1: Solar Lease Negotiation Period in Indiana The solar lease negotiation process is the first step landowners take when interested in having a solar farm on their property. Land professionals can assist landowners during this period to make sure they are receiving the best deal possible but also understand the time period between signing the lease and having an active solar farm on their land. During the negotiations, landowners can negotiate solar lease payments, the length of the lease for the solar farm, and what the percentage of the escalator is to combat inflation. Step 2: Solar Lease Option Agreement in Indiana The next step is for the landowner to get a solar farm option agreement. At that point, the solar developer has done a preliminary study, also called a feasibility study, to know if the site is potentially suitable for solar farm development. Why Can’t I Get a Solar Lease Agreement Directly? The process of a solar farm project in Indiana begins with optioning the land, which is called “site control” by developers. The reason solar developers cannot go straight to a solar lease is because they have to evaluate the land thoroughly. Typically the initial screening study is good enough that this first due diligence process is all that is needed. Another larger uncertainty for solar developers is to know if the solar project will be accepted by the utility on the electrical infrastructure (or electrical network). We refer to this phase as “utility’s application” in the graph above and developers refer to this phase as “queue submission”. This means that the solar project enters the interconnection queue of that region waiting for regulatory approval. These queues are known as Independent Systems Operator (ISO) or Regional Transmission Organization (RTO). During this period, the analysis of possible engineering and land factors is conducted to determine the feasibility of the project to be constructed and connected to the grid. This is the reason why the solar developer starts with an option, as not all solar projects are approved by the ISO/RTO. How Likely Will My Indiana Solar Option Become a Solar Lease? At the moment, about 20% of solar options become a solar lease and are built into a solar farm. Currently, the electrical infrastructure network is a big bottle neck. There are more applications of solar projects to get on transmission lines than available capacity. However, governments are aware of this situation and are working to ease it, in order to foster more solar development. This means that it will likely get resolved in the next few years. The problem of available capacity applies only to utility scale solar farm projects, which are typically greater than 5MW capacity. Where Can a Landowner Get More Information About the Solar Lease / Option Period in Indiana? LandApp assists landowners with determining the value of their land for a solar farm. We do this by taking into account the proximity of substations, transmission lines, and state incentives - each of which play a role in site control. Am I Getting Paid During the Solar Option Period? Yes. Solar payments start during the option period but are usually smaller compared to the solar payments during the lease or construction phase of the solar farm. Step 3: Solar Lease Agreement in Indiana Once the availability of grid capacity is confirmed, the solar project is moved to a “planned” phase. During this time, the developers will exercise the solar farm option agreement to become a solar farm lease agreement. Typically larger solar rent payments start at this time. Step 4: Solar Farm Construction in Indiana Solar payments are phased as the project progresses. It starts with small solar lease payments during the option phase. Then it increases during the solar lease phase, it increases again during the construction phase of the solar farm, and the largest solar payment occurs when the solar farm is active and generating electricity. How Long Does It Take to Build a Solar Farm in Indiana? Usually it will take between 1 to 2 years to build a utility scale solar farm. It takes less time to build a community solar farm since they are usually smaller in size. Step 5: Active Solar Farm in Indiana After the construction has been completed, the solar farm is now considered ‘active.’ For landowners, this phase is called ‘production,’ as it signifies that their land is currently producing energy for the electrical grid that it is interconnected with. The production phase lasts anywhere from 25 to 50 years depending on what was negotiated on the lease. What Can a Solar Farm Power in Indiana? In Indiana, the average solar farm size is 42.5 acres generating approximately 7.2 megawatts (MW) of electricity when operating under optimal conditions. This output has the potential to cater to the energy needs of over 1,250 households as the typical electricity consumption of an average household in Indiana stands at 14,484 kWh per year. What is the Impact of the IRA and Other Factors in Indiana? Current Solar Incentives Indiana solar incentives have encouraged solar companies to develop more projects across the state. Additionally, favorable market conditions for electricity prices are encouraging investment into the solar sector in Indiana. Landowners and real estate agents should have an understanding of these incentives and market conditions to be prepared for potential offers for solar project deals. Inflation Reduction Act: This bill passed in 2022 and became effective at the beginning of 2023 provides incentives to reduce renewable energy costs for organizations on a business, educational institution, and state level. More specifically, in Indiana, solar energy is eligible for a tax credit. Indiana Code 8-1-42: Communities in Indiana now have the option to transform into solar energy-ready communities as outlined in Indiana Code § 8-1-42 and adhere to its legislation, which includes: setback regulations, landscape buffers, height limitations, ground coverage amongst a few. These are to ensure communities receive financial incentives from the upcoming budget cycle based on the amount of energy they produce. Senate Enrolled Act 390: In April, the General Assembly approved Senate Enrolled Act 390, which grants permission for the creation of a Center for the Development of Commercial Solar and Wind Energy-Ready Communities within the Indiana Office of Energy Development. This center aims to offer readily available information regarding the permits necessary for commercial solar and wind energy projects. Additionally, it will collaborate with local permitting authorities to facilitate these projects. This initiative encourages counties to achieve the status of "solar or wind-ready" communities by implementing consistent solar and wind energy standards specific to Indiana counties, instead of mandating statewide compliance. The combination of a large increase in LMP pricing and a slight increase in PPA has made solar energy an attractive option for electricity generation in Indiana. LMP is a pricing method used in electricity markets to determine the cost of electricity at specific locations (called ‘nodes’) within the electrical grid. A PPA (Power Purchase Agreement) is a contract between a renewable energy developer (such as a solar company) and a power purchaser (such as a utility). Over the last three years, Indiana experienced a notable 5.17% increase in PPA pricing and an average price LMP price increase of 45.46% (this is expected to increase by an additional 1.79% in 2024). In the context of solar energy projects in Indiana, the relationship between the LMP and PPA prices is dependent on how the PPA maintains a set pricing term for the electricity being sold. The fixed PPA prices ensure the solar developer on the revenue generated from the electricity that they generate. Meanwhile, the LMP serves as the market price for electricity at a specific node. When the LMP at a particular node in the grid is higher than the contract price specified in the PPA, it benefits the solar company, as they will receive the contract price and sell the electricity at a higher market price (increasing their revenues). While the PPA price has slightly increased, this isn’t enough to offset the rise of solar projects in Indiana through the interconnection queue. Commercial, Community, & Behind-the-Meter Indiana Solar Farms Typically, landowners and land professionals think of solar farms as huge plots of land covered in solar panels out in the middle of nowhere. However, this usually is not the case! In Indiana, solar farms are typically 42.5 acres, allowing about 7.2 MW of electricity to be produced under ideal conditions. Commercial solar projects are the commonly largest energy projects being about 40+ acres of land. These solar farms usually feed their energy into the grid to the surrounding area. Realistically these solar farms can be any size as it depends on the capacity available within the grid. Community solar farms in Indiana serve energy customers directly within the same area or community. These solar farms tend to be smaller in size in relation to acreage and megawatts. Community solar is different from residential solar as residential solar panels are found on top of roof tops. Community solar projects can be larger, it just depends on the location. Commercial, residential, and industrial solar farms are all considered to be behind-the-meter solar farms. Behind-the-meter means that they are intended to generate power primarily for on-site consumption rather than selling it to the grid. Community solar and utility scale solar farms generate energy that is utilized in the grid to send it to all consumers a part of that grid. This means that they are front-of-the-meter solar farms. Discover Land’s Value For Solar Leasing in Indiana The solar energy industries within Indiana are growing to achieve energy goals for clean energy development. This makes it easier for landowners and real estate agents to participate in solar development deals. Landowners in Indiana can receive a free solar leasing estimate by identifying and claiming ownership of their parcel on our map. Realtors can assist their clients in learning about their property’s potential for solar energy by using LandGate. Land professionals can utilize LandGate’s data and analytics to provide their clients with information about their resource’s potential.

Accurate and comprehensive parcel data is essential for effective land management, and LandApp Pro is the first tool that consolidates such a vast array of data into a single platform. This unparalleled dataset empowers users to perform in-depth analyses of a property’s potential—past, present, and future—for clients. With advanced technology and proprietary property valuation tools, LandApp Pro makes real-time parcel analysis accessible at the click of a button. By seamlessly integrating land ownership, land use, energy resource values, and more, LandApp Pro delivers an all-in-one platform designed for land realtors, property owners, and anyone managing land assets. Key Takeaways: Parcel data is crucial for land management, providing comprehensive insights into land ownership, use, and resource values, which aid in strategic decision-making. LandApp offers an unmatched dataset that integrates various data points into an all-in-one platform, enhancing property evaluations and management. With LandApp Pro , users can access a full suite of data including market listings, ownership information, renewable energy estimates, and more, all in one place. LandApp's marketplace provides free listing opportunities, extensive audience reach, and interaction with high-intent energy developers and investors, maximizing property visibility and potential deals. What is Parcel Data? Parcel data encompasses critical elements such as ownership details , land use, property features, and resource values. Parcel data plays an important role in financial, legal, and real estate transactions . LandApp's platform simplifies property evaluations for land realtors, property owners, and more by offering real-time parcel analyses with just a click. This integration of parcel data enables a seamless approach to managing land and investing in real estate more effectively and efficiently. How to Use Parcel Data Real estate agents can use parcel data to reach new clients, expand their value proposition, and research properties to conduct due diligence. Reach New Clients Parcel value is an all-inclusive data set including acreage, resource value, and proximity to electrical infrastructure. By getting access to these data sets, you will be able to present all this information to new, current, or previous clients. Sometimes, property owners can get the most value from their land through leasing resources as opposed to just selling the land outright. Even though each client is different, they could all benefit from parcel data in the same ways: New clients may have no idea what their land is worth, and may not know the leasing potential their land has with renewable energy. Current clients that are interested in either selling their land or leasing their land will have a better understanding of the potential value. Previous clients who you helped purchase land might be interested in making passive income through leasing resources renewable energy. Real estate professionals can list properties for sale or for lease (solar, wind, energy storage, data centers, recreation, agriculture, and more) for free on LandApps unique marketplace with no obligation to accept any offers. Post your land or CRE listings for lease or for sale on LandApp's marketplace List land for free - LandApp does not charge any fees or commissions Have full control over your listing Take advantage of available API connections High intent energy developers, investors, and buyers frequent LandApp's marketplace because of its exclusive listings. By listing on LandApp, you gain exposure to a large network of traditional buyers and premium buyers like capital markets investors, CRE and infrastructure developers, and renewable energy developers. Conduct Due Diligence When it comes to buying or selling real estate, conducting thorough due diligence is crucial. There are a variety of man-made and environmental concerns that can become costly surprises. Today , environmental concerns are broadly acknowledged, yet they've been a pressing issue in commercial real estate for over fifty years. Hazardous and toxic chemicals from spills and disposal practices have leached into soil and groundwater, resulting in   property contamination . This pollution can threaten drinking water, impair indoor air quality, and extend to adjacent properties. By conducting thorough evaluations, buyers, developers, and investors can make informed decisions, often mitigating the impact of contamination and protecting the health and safety of future occupants. LandApp Pro is a one-stop-shop for real estate due diligence. Users can use the value index scores to uncover hidden monetization opportunities for renewable and natural resources, and they can use the risk index scores to identify any potential man-made or natural risks, making due diligence a breeze. Strategic Site Selection Parcel data is an invaluable resource for property developers evaluating land value. By examining details like parcel size, location, and past sales data, developers can make smarter decisions about where to build and how to plan. This data-driven approach helps pinpoint high-growth areas, allowing for strategic investments that align with market demand and future trends. Similarly, parcel data provides valuable insight into zoning regulations, helping real estate professionals stay compliant with local rules. This understanding is crucial for obtaining permits, steering clear of legal issues, and keeping projects on track and above board. Nationwide Parcel Data with LandApp Pro LandApp Pro is a one-stop shop for parcel data for all properties across the United States. Many other real estate apps can only offer one portion of what LandApp provides in one easy platform: Current Market Land Listings For Sale and For Lease Nationwide Ownership Information Historical Lease/Sale Values Parcel Boundaries Nationwide Data Layers , including: Mining site locations Contaminated site maps Amenity maps EV Charging station maps Renewable Energy Lease Estimates (solar, wind) Carbon Credit and Soil Data Topography and Slope Information Agricultural Data Real estate apps should be able to show you the complete information for parcels across the country and benefit all types of potential users like land and property owners, residential realtors and brokers, land professionals, and commercial real estate agents. LandApp Pro  can show all of these data points and more.

In today's competitive real estate market, understanding what amenities entice prospective tenants can be the key to successful leasing activity. As renters become more discerning in their search for the perfect home, property managers must stay ahead of the curve by offering features that not only meet basic needs but also enhance lifestyle appeal. This resource explores the essential amenities that attract tenants and drive leasing success. Amenities that Drive Leasing Activity In flexible and hybrid workplace settings, employers aim to craft engaging, experiential office environments that encourage employees to value in-person attendance several days a week. Key factors include the quality of the workspace, the level of services offered, the vibrancy of the surrounding neighborhood, and the variety of amenities within and around the building. LandGate's tools for commercial real estate allow commercial property owners and investors to assess a property's proximity to various amenities at a glance. LandGate's platform also provides various data points to help streamline the site selection process, including data about buildable acreage, potential contaminants, offtake capacity, zoning, owner information, and more. To learn more, book a call with our team: Location-Based Amenities That Drive Leasing Activity Convenience greatly improves the office and hybrid work experience. Workspaces situated in mixed-use developments with nearby food and retail options embody the 15-minute city concept. This model ensures that work, essential services, and leisure activities are just a short walk or bike ride away from home, fostering a better work-life balance. It also offers employees easy access to social and after-work activities. Properties located near amenities typically have higher commercial real estate values and increased rental rates. 1) Restaurants The proximity of restaurants to commercial buildings greatly enhances their appeal and boosts leasing activity. Restaurants serve as key attractions for businesses, offering convenience to both employees and clients. With dining options nearby, employees can enjoy a variety of lunches, promoting a balanced and satisfied workforce. It also allows businesses to host casual meetings or entertain clients without long commutes, which is appealing to potential tenants. This increased foot traffic supports local economies and fosters a lively community atmosphere, making the area more attractive for businesses. Strategically located restaurants thus help create a dynamic business ecosystem, driving sustained leasing demand. 2) Schools The lease value of c ommercial properties is shaped by various factors, with proximity to schools being particularly influential. Properties situated near schools are highly desirable, especially for families with school-aged children, due to the convenience they offer. This demand often translates to higher property values, as buyers are willing to pay a premium for easy access to educational facilities. For potential buyers or tenants, commercial properties near schools are especially attractive because of this convenience, which also boosts community appeal. As a result, these properties often experience increased values and faster turnover rates. Moreover, commercial properties near schools tend to experience a surge in foot traffic, especially during peak times when parents are dropping off or picking up their children. This increased foot traffic can be advantageous for businesses operating in these locations, such as retail stores or restaurants, as it can attract more customers. Amenities Data in LandGate's Platform for CRE 3) Public Transport Commercial real estate properties near public transportation are increasingly appealing to tenants. These properties are often centrally located, offering commuters access to various transportation options—a significant advantage for both employers and employees. A   joint study  by the American Public Transportation Association (APTA) and the National Association of Realtors ( NAR ) found that commercial property values rise significantly when near transit. In four of the seven metropolitan regions examined, commercial property values increased by 5% to 42% in median price per square foot. The commercial real estate market thrives when residents and commuters have nearby mobility options, including buses, metros, and subways. Office tenants particularly seek convenient and walkable locations that provide employees with an easy commute and quick access to local dining, retail, fitness centers, and entertainment. Retail tenants benefit from greater visibility in high-pedestrian areas near transit routes, attracting new clients and potential customers. Additionally, businesses close to public transportation contribute to a more eco-friendly environment for their city. 4) Shopping Centers Proximity to shopping centers is a compelling factor driving leasing activity for commercial properties. Shopping centers serve as major attractions, drawing consistent foot traffic that benefits nearby businesses. This can help elevate the visibility of those properties and attract a diverse range of tenants such as cafes, retail stores, and service providers who can capitalize on the regular influx of potential customers. Additionally, properties near shopping centers are often in high-demand communities, offering convenience not only to business operators but also to their employees and customers. This adjacency allows businesses to maintain a higher customer base and revenue potential, which is especially appealing to retail and service-oriented tenants. The increased foot traffic results in more frequent visits and transactions, contributing to the commercial property's value and making it a strategic choice for businesses aiming to thrive in competitive markets. Building Amenities That Drive Leasing Activity In today's competitive commercial real estate market, building amenities are crucial for attracting and retaining tenants. These features boost tenant satisfaction by providing convenience and improving the work-life experience. These offerings not only increase tenant retention, but also allow properties to command higher lease values, making them essential for property developers and managers aiming to maximize investment returns. 1) New Construction Newer commercial buildings often see increased leasing activity due to the attractive features modern construction offers. These buildings come with state-of-the-art technology and infrastructure that meet contemporary business needs and boost efficiency. Amenities like high-speed internet, smart energy systems, and advanced security attract businesses looking to stay competitive. Designed with sustainability in mind, new constructions use eco-friendly materials and energy-efficient systems, appealing to tenants who want to reduce their carbon footprint. The modern aesthetics and flexible layouts allow businesses to customize spaces to reflect their brand, enhancing employee productivity and satisfaction. These factors make newer commercial buildings appealing for businesses looking to establish themselves in prime locations with facilities that support growth and innovation. 2) Retail & Restaurants On-Site In the realm of commercial real estate, integrating dining options can dramatically boost property value. Experience-oriented dining can elevate a typical retail space into a lively hub. For example, a mixed-use development with a carefully curated array of restaurants and bars can draw more visitors, extend their stay, and subsequently drive sales across all tenants. Additionally, properties with top-notch food and beverage offerings often achieve higher rents and experience lower vacancy rates. Commercial property owners and investors should understand that tenants are willing to pay more for locations that offer more than just a meal— they seek venues that create memorable experiences, encouraging repeat visits. 3) Common Areas & Conference Rooms Common areas and conference rooms in commercial properties are key to attracting more leasing activity. These spaces offer tenants amenities that boost collaboration and community among businesses. Well-designed common areas serve as informal meeting spots where employees from different companies can interact and network. This sense of community appeals to tenants who value a dynamic work environment.  Conference rooms provide facilities for meetings and presentations, eliminating the need for tenants to lease extra space. The convenience of on-site conference facilities makes these properties attractive to businesses looking to optimize space and costs. Moreover, modern conference rooms with advanced technology support virtual meetings, meeting contemporary business needs. As a result, commercial properties with these amenities often enjoy higher tenant satisfaction, lower vacancy rates, and increased demand for functional and flexible workspaces. 4) Sustainability/ Smart Buildings Sustainability and smart features are increasingly driving leasing activity in commercial real estate. Sustainable buildings, designed with eco-friendly practices, help reduce energy consumption and create healthier environments. They often use renewable energy resources like solar panels, green roofs, and efficient water systems, leading to lower operating costs. As businesses focus more on their environmental impact, demand for these spaces grows. Smart buildings use advanced technology to manage energy efficiently and improve building operations. Features like smart HVAC systems, lighting controls, and occupancy sensors help save costs by using resources wisely. IoT devices and data analytics enable real-time monitoring, ensuring a seamless environment. Sustainable buildings also reflect a company's commitment to corporate social responsibility, aligning operations with environmental goals. This can enhance corporate image and attract eco-conscious customers and employees. As sustainability and technology become more important, properties with these features are set to see increased leasing activity, maintaining competitiveness in the market. 5) On-Site Parking On-site parking and EV charging stations significantly boosts leasing activity in commercial properties. Properties with dedicated parking offer convenience and accessibility, appealing to both businesses and their clients. For tenants, on-site parking eliminates the hassle of finding nearby spaces, especially in busy urban areas where parking is scarce and expensive. This convenience improves customer experience, encouraging more visits and longer stays, which supports tenant business growth. It also streamlines employee commutes, reducing absenteeism and fostering productivity. As a result, commercial properties with ample on-site parking experience higher demand and lower vacancy rates. They attract diverse tenants, from retail to professional services, who benefit from increased foot traffic and customer satisfaction. Thus, on-site parking is not just a bonus, but a strategic asset that enhances property appeal and ensures long-term occupancy. Finding Commercial Property Proximity to Amenities Evaluating a commercial property's proximity to amenities is a critical part of the site selection process. LandGate's tools for commercial real estate provide nationwide amenity data, allowing you to assess a property's proximity to various amenities like schools, restaurants, shopping centers, gas stations, and more at a glance. LandGate's platform also allows you to assess the data center and renewable energy potential of commercial properties, allowing owners and investors the opportunity to take advantage of sustainable initiatives. To learn more, book a call with our team:

Interested in purchasing real estate? Whether you’re a first-time buyer or looking for your next investment, purchasing property directly from the owner can be a unique opportunity to save money, avoid middlemen, and connect personally with the seller. This resource will guide you through everything you need to know about buying a property for sale by its owner and why it might be the perfect choice for you. Browse nationwide listings for various types of properties for sale by owner on LandApp's marketplace. LandApp's marketplace allows you to filter properties based on location, acreage, and price range, making it easier to find suitable options. Additionally, each listing is embedded with LandApp's proprietary property data, allowing you to evaluate properties at a glance. Start exploring today: How Do You Buy Property From an Owner? Buying property and land from a private seller can seem complex, but with the right knowledge and guidance, the process becomes much more manageable. Success lies in understanding the necessary steps, conducting thorough research, and performing diligent due diligence to ensure a smooth transaction. 1) Determine Your Budget The first step to buy property or land from an owner is to determine your budget. This will help you narrow down your options and find properties that are within your price range. Before you start searching for properties for sale by owner, create a realistic budget by asking yourself these questions: Can you make a cash offer?  If not, what down payment are you prepared to provide?  How much are you able to allocate for potential improvements? Keep in mind that securing   financing for land  is often more challenging than obtaining a loan for residential real estate, as land poses a greater risk to lenders. This is particularly true for raw land, which lacks collateral, such as a home or other structures, to back the loan. 2) Establish Why You're Buying Property Understanding why you’re buying land or property is crucial before commencing your search, as it shapes your decision-making process and ensures your investment aligns with your goals. Your purpose for purchasing property- whether for building a home, farming, starting a business, or holding onto it as an investment- directly impacts factors such as location, zoning requirements, and infrastructure needs. For example, land intended for agricultural use will have different requirements compared to a residential property. Clarifying your goals helps you narrow your options effectively, avoid costly mistakes, and communicate your needs clearly to agents, lenders, or other professionals assisting you in the process. 3) Find Property for Sale There are several ways to find property for sale by owner. Start by browsing online platforms that specialize in land listings, such as LandApp. Online marketplaces like LandApp allow you to filter properties based on location, acreage, and price range, making it easier to find suitable options. Additionally, you can check local classified ads, community bulletin boards, or even social media groups dedicated to real estate sales in your desired area. Driving through neighborhoods or rural areas can also yield opportunities, as many owners place "For Sale By Owner" signs directly on their properties. Networking with local real estate professionals, even if they aren't directly involved in the sale, can provide valuable insights and potential leads on available land. Always remember to verify the details of any listing to ensure the property meets your requirements and is legitimately available for purchase. 4) Research the Property Once you’ve found a property that catches your interest, the next step is thorough research and due diligence. It’s essential to determine whether the land meets your intended use and to uncover any potential concerns, such as   environmental risks . If possible, visit the site to get a feel for the area, or consider hiring a local land surveyor for a professional inspection. By taking these steps, you can make a more informed decision and avoid unexpected challenges. 4) Research Zoning Laws & Check for Easements Start by familiarizing yourself with local zoning laws and regulations, as they play a crucial role in determining how a property can be used. Zoning designations specify permissible activities on the land—residential properties may restrict commercial development, while agricultural land might prohibit residential construction. Ensure the zoning designation of your desired property aligns with your intended use before moving forward. Equally important is investigating any existing   easements  tied to the land. Easements grant specific rights to third parties, such as access to roads or utility lines, which could impact your plans. Understanding these agreements is essential to avoid unexpected limitations. 5) Contact the Seller Once you've identified a piece of land that meets your needs, the next step is to reach out to the private seller to express your interest. This initial contact is a pivotal moment, setting the stage for negotiations and bringing you closer to securing your ideal property.  Before reaching out, ensure you’ve gathered all the necessary details, such as the seller’s phone number, email address, and preferred method of communication. It’s also wise to ask about the best time to contact them to ensure a focused and productive conversation.  When making first contact, approach the interaction with a balance of professionalism and friendliness. Introduce yourself, clearly state your interest in the property, and request any additional information you might need. Share your intentions and ask if they would be open to considering an offer. Establishing a positive rapport from the outset can significantly influence the negotiation process and help pave the way toward a successful agreement. Additionally, asking the right questions about a property is crucial to ensure you fully understand what you’re purchasing. Be sure to inquire about any special permits, easements, or restrictions tied to the deed to get a clear and accurate picture of your investment. 6) Negotiate & Discuss Financing After establishing contact with the seller and expressing your interest in the property, the next step is entering the negotiation phase. Before making an offer, research similar properties in the area to understand the fair market value and establish a reasonable starting point. It’s important to approach negotiations with a clear understanding of your budget and financing options, as this will help you present a strong yet realistic offer. Be prepared to negotiate not just the price but also other terms, such as the closing date, any included assets (like equipment or existing structures), and contingencies that might protect you as a buyer. When discussing financing, clarity and transparency are key. If you plan to secure a loan, inform the seller of your financing timeline and any conditions that might affect the sale. Private sellers are often more flexible with payment arrangements, and some may even offer owner financing, allowing you to pay for the property in installments directly to them. If this is an option, discuss the terms thoroughly, including interest rates, repayment schedules, and any penalties for late payments. Document all agreements in writing to prevent misunderstandings down the line. A well-prepared and professional approach during this stage will increase your chances of securing a favorable deal. 7) Hire Professional Assistance When purchasing land from a private seller, it’s crucial to have an experienced attorney to draft the land purchase agreement and safeguard your interests. Your lawyer should be well-versed in local laws and regulations, as well as any potential restrictions or liens that may be tied to the property. They can also help you navigate any special clauses or conditions included in the contract. An attorney ensures all necessary paperwork is in order and highlights any potential issues that could arise during the transaction. To find the right legal support, look for a professional with expertise in real estate law who can provide clear advice and guidance throughout the process. Take time to compare rates, services, and reviews to ensure you receive the best representation possible. They might recommend hiring a surveyor to accurately map the property boundaries and identify any potential encroachments. An airtight purchase agreement is essential for protecting your investment and ensuring peace of mind. It clearly outlines the terms of the transaction, ensuring both buyers and sellers fully understand their obligations. To get it right, enlist the help of an experienced real estate attorney. Their expertise is invaluable in navigating the complexities of land sales and ensuring every detail is properly addressed. Pros and Cons of For Sale By Owner Property Transactions The pros and cons of buying and selling properties for sale by owner mostly depends on the location, the specific aspects of the property, and the buyer or seller themselves. While FSBO sales are generally uncommon, there are reasons why some property buyers and sellers choose to take this route. Pros of property sales by owner include: Save on Listing Agent's Commission:  Sellers choose to go FSBO mainly to save on the listing agent’s commission, which typically ranges from 3-6%. Complete Control of the Process: One of the biggest advantages of FSBO sales is having complete control over the entire process. If you’re a property owner who knows exactly how to price your property, market it effectively, and determine the type of offer you’re willing to accept, FSBO might be the perfect option for you. Selling a property by owner can have its advantages, but it also comes with significant challenges. Without the support of a real estate agent, all responsibilities fall squarely on your shoulders. You’ll need to manage everything from communicating with potential buyers to negotiating with their agents. Here are some key drawbacks to consider when opting for a for sale by owner approach: FSBO Properties Sell for Less : According to the  National Association of Realtors (NAR) , FSBO properties statistically sell for less than agent-listed properties. Large Time Commitment: Selling your property on your own means taking on a lot of responsibilities. You'll need to handle marketing, set the right price, and take high-quality photos for your listing. Beyond that, you'll need to coordinate viewings with potential buyers—a task that can become overwhelming if you're already juggling a full-time job. Once the offers start rolling in, you'll have to carefully review each one and negotiate terms with the buyer and their agent- who likely has far more experience in the process than you do. Homes for Sale by Owner If you're looking for homes for sale by owner, LandApp’s marketplace is an exceptional resource to simplify your search. LandApp offers advanced listing filters that allow you to refine your search based on personalized criteria such as location, price range, property size, and more. These tools are designed to help you quickly find FSBO properties that meet your specific needs. With thousands of homes for sale by owner listed on the platform, you’ll have access to a wide variety of options. LandApp’s user-friendly interface makes it easy to explore listings, compare properties, and find the ideal home—all while benefiting from features tailored to streamline the FSBO buying process. Land for Sale by Owner You can find private land sellers on LandApp's marketplace.  With thousands of properties listed, you can search for land by location, size, price range and more. LandAp's marketplace is designed to make the process of buying land directly from owners simple and streamlined. By using the advanced listing filters and tools available on the platform, you can quickly find potential properties that meet your needs. Whether you're looking for a small plot to build a vacation home or a large acreage for farming or development, LandApp has something for everyone. List Property for Sale by Owner Selling property by owner can be an attractive option with potential cost savings and flexibility in negotiation. With the right approach, selling your property privately can be a successful venture that meets your specific needs and preferences. However, it also comes with its own set of challenges and risks.  To make the most of a private sale, it is recommended to have a seasoned attorney guide you through the process and ensure all legal aspects are properly addressed. If you're interested in selling land or property by owner, consider listing your property for sale on LandApp's marketplace. There are no fees or commissions, and no obligations to accept any offers. By listing on LandApp's marketplace, you expose your property to a wide network of private buyers, capital markets investors, renewable energy developers, CRE and infrastructure developers, and more, ensuring you generate competitive offers and get the most value from your property:

Has a Landman Contacted You? Has a landman contacted you and is now threatening to force pool your minerals if you don’t sign his lease? What are your options? Is he offering you a fair deal for your mineral rights? What does a fair deal look like? Who can you talk to? First, let’s talk about Forced Pooling. Need to understand your property’s worth? Get a free third-party estimate for the value of your minerals and other resources with a free LandApp property report: What is Forced Pooling? Forced Pooling (sometimes called Statutory or Compulsory Pooling) is a legal mechanism that allows oil and gas operators to drill wells when they are unable to get 100% of the mineral interests to commit to support the drilling of a well. Certainly the operator would like to acquire leases, farmouts or working interest partners covering 100% of the minerals within the drilling spacing unit allocated to the well to form a voluntary unit. But that’s not always possible. Drilling Spacing Units Regulatory agencies within each state require drilling operators to allocate a certain number of acres around an oil and gas well prior to approving a permit to drill. Some states may require that a pooling agreement identifying all leases within the unit be filed of record in the county courthouse, while others might just require the operator to adhere to existing field rules such as 40 acres around an oil well, 640 around a gas well or perhaps 1280 acres around a horizontal well with an extended reach lateral of 9,000’. Oil and Gas Operators Drilling Operators prefer to have all the minerals within the unit committed by lease or other contracts. But in many instances, that’s not possible. In some cases, it might be difficult to locate a mineral owner. Or perhaps a mineral owner does not need the lease bonus or royalty , but instead just wants to prevent drilling. In support of all the other mineral owners within the unit who have granted leases, the operator should be permitted to drill. Forced Pooling will allow the well to be drilled. Can a Drilling Operator Force Pool Instead of Leasing Your Minerals? There is a good chance that the landman who knocked on your door has threatened to force pool your minerals if you don’t sign his lease. Perhaps you are okay with granting an oil and gas lease, but how do you know if he is offering a fair deal? Did the other mineral owners receive a $500 per acre lease bonus, and he is offering you $100 per acre lease bonus? Did the other mineral owners retain a 20% royalty, and he is offering you a 12.5% royalty? If you want to know what other mineral owners received for their lease, you could hire someone to run the oil and gas records in the courthouse to locate the leases executed by other mineral owners. However, the courthouse records will likely only identify the primary term and the royalty reserved. The lease bonus will not be identified, as the consideration will be shown as “$10 and other valuable consideration.” Or if the lessee filed a Memorandum of Lease, in the alternative to the actual oil and gas lease, then there is a chance you will not know about the bonus or royalty. If you agree to sign an oil and gas lease, you must lease to the company that will be operating the well. There is a good chance that the landman wanting to lease your minerals intends to assign your lease to the operator for more money than he paid you and retain an overriding royalty interest. What are your options? Thirty-nine states have regulations providing for forced pooling, and the regulations will vary from state to state. Below you will find links to individual state sites for further information. As for what your options might be, consider the following and keep in mind that in many states you may only have 30 days max in which to decide before your minerals are force pooled: Grant a Lease to the Landman Representing the Operator You may not get the best deal from the drilling operator, but probably better than being force-pooled. Grant a Lease to Another Company Who Wants to Participate in Drilling the Well This could be the best option. Leasing should be competitive. Find another oil company that wants to participate in the drilling of the proposed well. Grant a lease to that company for a higher lease bonus and/or higher royalty. Sell your Minerals If you can find a mineral buyer, you should receive a much higher cash offer to sell your minerals as compared to leasing them. The downside is that you will not get any royalties if the well is successful. The upside is that if they drill a dry hole, you may be very happy you chose to sell instead of lease your minerals. Agree to Voluntarily Pool your Minerals and Participate in the Drilling of the Well Not many mineral owners want to take the risk of paying for a portion of the cost to drill, complete and equip a well. This would make you a non-operating working interest owner. This could also expose you to liabilities associated with owning a working interest in a producing property as well as obligate you to pay for any additional costs associated with the well to include re-working operations, plugging, and property restoration. Be Force Pooled If you are force pooled, you will probably receive a 12.5% royalty (depending on the state). The remaining 87.5% interest associated with your minerals will be retained by the oil and gas operator until the operator recovers anywhere from 100%-300% (depending on the state) of the cost associated with drilling, equipping and operating the well. After which time your full interest will revert to you, and you will become a non-operating working interest owner. But again, this could expose you to the same liabilities as shown above, if you agree to voluntarily pool your minerals. IF YOU ARE FORCE POOLED, PLEASE SEEK LEGAL ADVICE. How can mineral owners profit the most? If you want to sell or lease your minerals , you should strive to expose your property to as many buyers as possible. LandApp is an online marketplace for land resources and will expose your oil and gas minerals to many potential buyers and lessees. Mineral owners can list their oil & gas rights for lease or for sale for free- LandGApp does not charge any fees or commissions! It starts by generating your free property report with lease and sale estimates on our map: Check out these helpful links on Forced Pooling laws in your state: AL HI - N/A MA - N/A NM SD AK ID - N/A MI - N/A NY TN AZ IL MN NC - N/A TX AR IN MS ND UT CA IA- N/A MO OH VT CO KS MT OK VA CA - N/A KY NE OR WA DE LA NV PA WV FL ME - N/A NH - N/A RI - N/A WI - N/A GA MD - N/A NJ - N/A SC WY

To clear up some confusion, let’s first discuss the difference between a royalty interest and an overriding royalty interest. Royalty Inte rest When a mineral owner executes an oil and gas lease, the mineral owner (lessor) retains an oil and gas royalty , which is usually described in the lease as a fraction, such as 1/8th. A royalty is a portion of the proceeds from the sale of production. So if a well is successfully drilled by the operator (lessee), the mineral owner will receive an oil and gas royalty payment every month for as long as there is production on the leased lands or being allocated to the leased lands. Overr iding Royalty Interest An overriding royalty interest (ORRI) is similar to a royalty interest in that it is also a portion of the proceeds from the sale of production. However, it is not retained under the terms of the oil and gas lease. An ORRI is granted, assigned and created under the terms of a separate document. The most common documents used to create of ORRI are: Assignment of an Overriding Royalty Interest Assignment of Oil and Gas Lease, where the Assignor retains an ORRI A couple of different scenarios: Oil Company takes an oil and gas lease from Mrs. Smith, the mineral owner. In the lease, Mrs. Smith retained a 12.5% mineral royalty.  Now, Oil Company owns the rights to 87.5% of the revenue, as 12.5% was retained by Mrs. Smith. As compensation for identifying the drilling locations, Oil Company assigns a 2%  ORRI (in the lease from Mrs. Smith) to Mr. Geologist. When a well is successfully drilled on the lease, the revenue from the sale of production will be split: Mrs. Smith- 12.5% Mr. Geologist- 2% Oil Company-85.5% Mr. Landman is speculating that Oil Company will be interested in leasing minerals owned by Mrs. Smith. Mr. Landman contacts her first and leases Mrs. Smith’s minerals. The lease provides for a 12.5% royalty. Oil Company wants to drill on Mrs. Smith’s minerals but now has to negotiate a deal with Mr. Landman. Mr. Landman agrees to assign the lease to Oil Company and reserves a 5% ORRI. When a well is successfully drilled on the lease, the revenue from the sale of production will be split: Mrs. Smith- 12.5% Mr. Landman- 5% Oil Company- 82.5% An overriding royalty interest: Is carved out of the working interest (oil company) share of production Is not ownership in the minerals, but in the proceeds from the sale of oil and gas Is free from the drilling and completion costs Is “tied” to the oil and gas lease.  When the lease expires, so will the ORRI Buying and Selling ORRIs is a big business. LandGate maintains well and production data for over 5 million oil and gas wells and permits covering every major basin in the United States. To view well-specific data, check out our LandApp tool ! Example of the 1% mineral royalty interest in a producing well from LandGate Whether you are receiving monthly ORRI checks or not, LandApp can market your ORRI to get you the most money. At LandApp, we want to make you an informed ORRI owner. Run a completely free property report to become more informed. After you've reviewed the information, consider listing absolutely free on LandApp's open marketplace.

In the rapidly evolving world of renewable energy, solar power has emerged as a leading force in the quest for sustainability. This surge in popularity has opened new opportunities for land realtors, particularly in the realm of solar leasing. However, navigating the intricacies of solar energy can be confusing, with numerous questions arising about how solar leasing works, its benefits, and the potential implications for land value. In this blog post, we aim to answer common questions asked by land realtors about solar leasing. Whether you're considering the feasibility of solar projects for your land listings or seeking to advise clients about their options, this guide is designed to clarify the path forward. Can land be used for other purposes with a solar farm present? Typically, commercial solar projects require at least 40 acres of buildable land. However, it is important to let landowners know that they don’t have to use all of their acreage for a solar farm if they do not wish to. This is up for negotiation with the solar developer! If they would like to keep producing crops or housing animals, they can provide a certain amount of acres for their needs and the solar panels. In fact, having grazing animals makes it easier to manage grass growth without the use of special devices. How long do solar leases typically last? The option phase will typically last between 2 to 5 years, and the development/ operation phase will last between 25 to 50 years. What does commission look like once a solar farm lease has been secured? The commission earned on solar energy deals are typically treated similarly as commercial real estate commissions. Each realtor/broker will be paid based on their specific listing agreement with their client, so the specific terms vary across the country. In most cases, a percent commission of payments that are made over time are paid to the realtor/broker. Since solar leases can extend for up to 50 years, that means a solar energy lease commission could earn revenue for a land professional for a significant period of time. In other cases, real estate professionals have chosen to get paid upfront for their commission. How can I judge if my client’s land holds value for a solar farm? The best way to judge your client’s land for solar farm potential is by using LandGate’s LandApp tool . For just $10 per month, LandApp has all of the data needed to discover the value of your client’s property for solar leasing. The type of land, distance from substations, transmission lines, and distribution lines are all important factors for determining a property's estimated value for a solar lease, and LandApp accounts for each of these factors in determining this calculation and more. What type of land is best suited for a solar farm? Solar developers generally seek out flat land with no obstructions, that is in close proximity to electrical infrastructure. However, the type of land and the state and local renewable energy incentives also affect whether or not land qualifies for a solar lease . If you're representing a property owner with an 'ugly' property, it could be well-suited for solar energy production! Check out this clip from our Data Centers, Solar & Beyond Webinar with Chip Bubela, Broker/ Owner of Bubela Real Estate to review a real-world example of a broker who helped his client lease his Land for solar energy: What is the difference between a community solar farm and a commercial solar farm? Community solar farms are a smaller scale of harnessing and dispersing the energy generated. The energy from a community solar farm is typically used within the surrounding community, for example households in a neighborhood can become a community solar farm.The number of solar panels typically ranges between 15 to 20 panels and generate between 1 to 10 kilowatts of energy. Commercial solar farms (also referred to as utility-scale solar farms) are large scale farms that are meant to provide more significant amounts of energy. On average, the amount of solar panels needed for a commercial solar farm are about 400 panels, which generates 10 to 100 kilowatts of energy. The solar panels themselves are also different from the ones used in a community solar farm. They are larger and heavier solar panels meant to increase efficiency. How does a battery storage lease/sale differ from a solar lease offer? The biggest difference between battery storage and solar farms is the amount of acreage that is needed, and the proximity to electrical infrastructure. Battery storage projects are far more concentrated, and only require 1-10 acres of buildable land. Sites that are ideal for battery storage are generally located directly next to a substation, or within a half mile. Historically, battery storage developers will also attempt to acquire the property versus leasing the property. Current practices are moving to include battery storage with solar farm development where landowners could find themselves leasing their property for a combination of battery storage and solar development. $/acre rates for battery storage can be significantly higher than rates for solar development so be sure to get as many offers as possible to know that you are getting the best deal for your client. How can I get the best deal for my clients? The best way to get the highest solar lease offer for your clients is to enter the property into a competitive marketplace like LandApp. Numerous energy developers use LandApp's data and marketplace to evaluate and plan new projects. Listing on LandApp is free, and there are no obligations to accept any offers that you receive through a listing. To discover the energy potential of any U.S. property, subscribe to LandApp Pro for just $10 per month. Access nationwide ownership information, unlimited property reports, and more: