Property development delays happen, often blowing out schedules by months. This drains cash reserves originally planned to finance build costs. Rather than watch sites sit idle while waiting approval, smart developers generate rental income from interim land uses in the gap.
Everything from contracted storage yards to one-off event venues can provide cash injections. Yet care is needed before signing any lease deals. Ideal tenants enhance rather than hinder eventual construction commencement.
Walking this tightrope between short-term revenue versus long-term impediments needs balance. Join us as experienced property players explain how they’ve safely made vacant land pay its way during extended project holdups. You’ll discover creative win-win ideas that both offset sunk holding costs and avoid obstacles down the track when development kicks off in earnest.
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Smart Short Term Land Uses During Delay Periods
So what creative land uses are savvy developers deploying to ride the waves of permit delays in Victoria? Plenty of options balance boosting the bank balance without ultimately hindering end designs!
Contracted storage operators often regarding sites suitable for securing shipping containers, vehicles, even industrial equipment that require access controls. With permit extensions common, agreements accommodating needed access offer retrievable revenue.
Parking is another popular pick, especially for CBD fringes plots awaiting approval. Leveraging land otherwise left languishing for daily commuter slots or short-stay spaces reflects market demand. Just be sure licensing arrangements enable flexibility.
Approved events also help hedge hassles from Council planning challenges. Music festivals, sporting contests, even boutique outdoor cinemas shine spotlight events otherwise unviable in established locales. While intensive oversight is needed, a short term spectacle on your site is a surefire winner!
Ideally any selected interim uses should be valued yet reversible without excessive remediation expenses should approvals finally furnish fruition. But with delays now inevitable, productive planning promises payoffs protecting against extended uncertainties!
Mitigating Downsides of Interim Land Uses
Alright, while creative land uses provide a financial buffer against delays, hopping into bed with short-term tenants isn’t without risks! Protecting finalization sequencing means carefully assessing downsides too.
Lengthy lease agreements could clash against construction commencement if approvals unexpectedly accelerate. Negotiate roll-over clauses aligning with planning milestones to mitigate reliance risks.
Also factor reversibility efforts if intensive site customization occurs. Clear terms on reinstatement costs strengthen risk protection should complex dismantling become necessary for buildings, utilities or hardstands.
Insurance obligations also amplify alongside event licensing liabilities. Indemnities protecting future development works offer coverage should incidents eventuate.
While delays dictate creative income protection tactics, never lose sight of end goals! Ensure interim arrangements enhance rather than inhibit eventual construction and sales completion. Keep communication open with authorities too – they’ll appreciate transparency over temporary land uses while deciding approvals!
In Summary – Balance Books Without Barriers
The takeaway for developers facing delays comes down to balancing risk and reward. Generating income from vacant land awaiting approvals offers financial respite against blown-out schedules. Yet binding contracts or intensive site works could come back to bite later.
Tapping into short-term demand for storage, parking or events provides tested revenue flow relief valves. But tailor agreements to align with planning milestones wherever feasible. Seek expert guidance negotiating suitable terms that eject easily when needed.
And maintain open authority engagement over temporary occupancy plans. Councils take comfort that site productivity taps local economic activity in developmental doldrums.
With the right contractual controls and mitigations framed, creative land uses provide savvy developers breathing space. Turning idle plots into money-spinners funds the frustrating wait for approvals while avoiding tripwires holding up eventual construction completions.